Accounting Manual

LAHORE PARKING COMPANY LTD
ACCOUNTING AND FINANCIAL REPORTING MANUAL

Lahore Parking Company
TABLE OF CONTENTS
1. INTRODUCTION
........................................................................................................................
............ 9
1.1 GENERAL INFORMATION
........................................................................................................................ 9
1.2 VISION STATEMENT AND VALUES
........................................................................................................... 9
1.3 OBJECTIVES
...........................................................................................................................................
10
1.4
SCOPE.................................................................................................................................
................... 10
1.5 TERMS USED IN THE
MANUAL............................................................................................................... 11
2. CUSTODY AND REVISION
....................................................................................................................
19
2.1
CUSTODY.............................................................................................................................
.................. 19
2.2 VERSION CONTROL
............................................................................................................................... 19
3. ROLES & RESPONSIBILITIES
................................................................................................................. 20
3.1 FISCAL ROLES
........................................................................................................................................
20
3.2 FISCAL RESPONSIBILITIES
...................................................................................................................... 20
3.2.1
Board of Directors
..................................................................................................................... 22
3.2.2
Managing
Director...................................................................................................................... 22
3.2.3
Chief Financial Officer (CFO)
.................................................................................................. 24
3.2.4
Senior Manager
Finance............................................................................................................ 25
3.2.5
Manager Accounts-I
................................................................................................................... 25
3.2.6
Manager Accounts-II
.................................................................................................................. 26
4. SIGNIFICANT ACCOUNTING POLICIES &
PRINCIPLES............................................................................. 27
4.1 ACCOUNTING POLICIES
......................................................................................................................... 27
Page 1
Finance Department Lahore Parking Company Ltd

4.1.1
Fixed Capital Expenditure
....................................................................................................... 27
4.1.2
Intangible assets
........................................................................................................................ 28
4.1.3
Revenue
.......................................................................................................................................
28
4.1.4
Employee benefits
..................................................................................................................... 29
4.1.5
Taxation
......................................................................................................................................
29
4.2 ACCOUNTING
PRINCIPLES..................................................................................................................... 30
4.2.1
Historical cost principle
........................................................................................................... 31
4.2.2
Matching Principle
..................................................................................................................... 31
4.2.3
Full Disclosure Principle
........................................................................................................... 31
4.2.4
Accrual Basis
............................................................................................................................... 31
4.2.5
Going Concern
............................................................................................................................ 31
4.3 QUALITATIVE CHARACTERISTICS OF FINANCIAL STATEMENTS OF
LEPARK............................................. 31
4.3.1
Understand ability
..................................................................................................................... 32
4.3.2
Relevance
.................................................................................................................................... 32
4.3.3
Materiality
.................................................................................................................................. 32
4.3.4
Reliability..........................................................................................................................
.......... 33
4.3.5
Faithful Representation
........................................................................................................... 33
4.3.6
Substance over Form
................................................................................................................. 33
4.3.7
Neutrality..........................................................................................................................
.......... 33
4.3.8
Prudence...........................................................................................................................
........... 33
4.3.9
Completeness
............................................................................................................................. 34
4.3.10
Comparability....................................................................................................................
......... 34
4.3.11 Timeliness
................................................................................................................................... 34
Page 2

5. CHART OF ACCOUNTS
.........................................................................................................................
35
5.1 RESPONSIBILITY
.................................................................................................................................... 36
5.2 ELEMENTS OF CHART OF ACCOUNTS
.................................................................................................... 36
5.2.1
Main
Code..................................................................................................................................
.. 37
5.2.2
Account Code
.............................................................................................................................. 37
5.2.3
Item Code
.................................................................................................................................... 38
5.2.4
Department
Code....................................................................................................................... 38
5.2.5
Sub-Account Code
...................................................................................................................... 38
5.3 PERFORM CLOSING
............................................................................................................................... 39
5.3.1
Close
Schedule............................................................................................................................
39
5.3.2
Reporting at
Closing.................................................................................................................. 39
5.4 PERFORM OPENING NEXT PERIOD/YEAR
.............................................................................................. 40
5.4.1
New
Period...............................................................................................................................
... 40
5.4.2
Next Year
.................................................................................................................................... 40
5.5 DISTRIBUTION OF CHART OF ACCOUNTS
.............................................................................................. 40
6. ACCOUNTING RECORDS
......................................................................................................................
42
6.1 ACCOUNTING RECORDS
........................................................................................................................ 42
6.1.1
Responsibility
............................................................................................................................. 42
6.1.2
Procedure
.................................................................................................................................... 43
6.1.3
Proper Book Keeping
................................................................................................................. 43
6.1.4
Prevention of Unauthorized Access
........................................................................................ 43
6.1.5
Disaster Recovery and Planning
.............................................................................................. 43
6.1.6
Retention Period
........................................................................................................................ 44
6.1.7
Disposition.........................................................................................................................
.......... 44

7. ACCOUNTING FOR ASSETS
.................................................................................................................. 46
7.1 TANGIBLE AND INTANGIBLE ASSETS
..................................................................................................... 46
7.1.1
Responsibility
............................................................................................................................. 47
7.1.2
Procedures
.................................................................................................................................. 48
7.1.2.1 Fixed Assets acquisition and capitalization
....................................................................................... 49
7.1.2.1.1 Recording of Fixed Assets on Acquisition
.............................................................................. 50
7.1.2.1.2 Trade in of Fixed Assets
............................................................................................................. 51
7.1.2.1.3 Measuring the fixed asset after
acquisition........................................................................... 51
7.1.2.1.4 Capitalization of expenditure
................................................................................................... 51
7.1.2.1.5 Land
................................................................................................................................................
52
7.1.2.1.6
Buildings.....................................................................................................................................
.... 53
7.1.2.1.7 Machinery/ Equipments
.............................................................................................................. 55
7.1.2.1.8 Computers
..................................................................................................................................... 55
7.1.2.1.9 Furniture and Fixtures
............................................................................................................... 57
7.1.2.1.10 Vehicles
....................................................................................................................................... 57
7.1.2.1.11 Office& Electric
Equipment..................................................................................................... 58
7.1.2.1.12 Donated Assets
........................................................................................................................... 59
7.1.2.1.13 General Criteria for Repairs / Improvements capitalization
........................................... 59
7.1.2.2 Fixed Assets Register
............................................................................................................................. 60
7.1.2.2.1 Contents of Fixed Assets
Register............................................................................................ 61
7.1.2.2.2 Recording of Fixed Assets in Register
..................................................................................... 62
7.1.2.2.3 Updating the Fixed Asset Register
........................................................................................... 63
7.1.2.2.4 Safe keeping of
assets................................................................................................................. 64
7.1.2.2.5 Identification of Fixed Assets
................................................................................................... 64
7.1.2.2.6 Effect of Errors or Inaccurate Changes in
Register.............................................................. 65
7.1.2.3 Leased Assets
.......................................................................................................................................... 65
7.1.2.3.1 Approval of Lease
........................................................................................................................ 66
7.1.2.3.2 Initial Recognition of Finance
Leases...................................................................................... 67
7.1.2.3.3 Subsequent Measurement of Finance
Leases........................................................................ 68

7.1.2.3.4 Operating
Leases.......................................................................................................................... 68
7.1.2.3.5 Lease Vs Buy Analysis
................................................................................................................. 69
7.1.2.3.6 Lease amendment procedure
................................................................................................... 69
7.1.2.3.7 Depreciation of fixed assets
...................................................................................................... 69
7.1.2.3.8 Depreciation Amount and Depreciation Method
.................................................................. 70
7.1.2.3.9 Factors to be considered in determining useful life of an asset:
..................................... 71
7.1.2.3.10 Depreciation
rates..................................................................................................................... 71
7.1.2.3.11 Depreciation Entries
................................................................................................................. 72
7.1.2.3.12 Impairment of Assets
................................................................................................................ 72
7.1.2.3.13 Impairment indicators
.............................................................................................................. 73
7.1.2.3.14 Assessment of Impairment
...................................................................................................... 73
7.1.2.3.15 Measuring Recoverable
Amount............................................................................................. 74
7.1.2.3.16 Recognizing and Measuring Impairment
Losses.................................................................. 74
7.1.2.3.17 Accounting Treatment of an Impairment
Loss.................................................................... 75
7.1.2.3.18 Reversing an Impairment Loss
................................................................................................ 75
7.1.2.3.19 Accounting Treatment of a Reversal of Impairment Loss
................................................ 76
7.1.2.4 Insurance
.................................................................................................................................................
77
7.1.2.4.1 Reporting of Property Related
Losses..................................................................................... 78
7.1.2.4.2
Recordkeeping.............................................................................................................................
. 79
7.1.2.4.3 Procedure for Reporting Damage or
loss................................................................................ 79
7.1.2.4.4 Use of LEPARK Equipment from One Location to another Location
................................... 80
7.1.2.4.5 Compensation for Loss by Theft of LEPARK Owned Moveable
Assets................................. 81
7.1.2.4.6 Good Practices to be followed for Safeguarding of LEPARK
Assets..................................... 81
7.1.2.5 Physical
verification............................................................................................................................... 82
7.1.2.5.1 Defining the Inventory Criteria
................................................................................................ 82
7.1.2.5.2 Controls
.......................................................................................................................................... 83
7.1.2.5.3 Reconciliation
............................................................................................................................... 84
7.1.2.5.4 Lost or stolen
property............................................................................................................... 84
7.1.2.5.5 Retaining the physical verification
record............................................................................. 85
7.1.2.6 Disposal
....................................................................................................................................................
85

7.1.2.6.1 Disposal Method
........................................................................................................................... 86
7.1.2.6.2 Disposal Criteria
........................................................................................................................... 87
7.1.2.6.3 Disposal Process
........................................................................................................................... 87
7.1.2.6.4 Assessment
.................................................................................................................................... 88
7.1.2.6.5 Abandonment of Assets
.............................................................................................................. 88
7.1.2.6.6 Replacement
................................................................................................................................. 88
7.1.2.6.7 Scrapping
....................................................................................................................................... 89
7.1.2.6.8 Building
.......................................................................................................................................... 89
7.1.2.6.9 Computers
..................................................................................................................................... 90
7.1.2.6.10 Machinery/Equipment
.............................................................................................................. 90
7.1.2.6.11 Vehicles
....................................................................................................................................... 91
7.1.2.6.12 Amortization of
Intangibles..................................................................................................... 91
7.1.2.6.13 Intangible Assets Acquisition and
Capitalization................................................................ 94
7.1.2.6.14 Responsibility
............................................................................................................................. 94
7.1.2.6.15
Procedure...................................................................................................................................
. 95
7.2 RECEIVABLE MANAGEMENT

................................................................................................................. 96
7.2.1
Responsibility
............................................................................................................................. 96
7.2.2
Procedure
.................................................................................................................................... 97
7.2.2.1 General Instructions
.............................................................................................................................. 97
7.2.2.2 Internal Control
...................................................................................................................................... 97
7.2.2.3 Allowance for Doubtful Accounts
........................................................................................................ 98
7.2.2.4 Write Off of Uncollectible Accounts
................................................................................................... 98
7.2.2.5 Correction of Errors
............................................................................................................................... 98
7.2.2.6 Accounting for Receivables Written Off
............................................................................................. 98
7.2.2.7 Aging of Accounts Receivable
.............................................................................................................. 99
7.2.2.8 Reconciliation and
Review.................................................................................................................. 100
7.2.2.9 Division of Responsibility
.................................................................................................................... 100
7.2.2.10
Minimum Prescribed Information
.................................................................................................. 101
7.3 ADVANCES AND DEPOSITS

.................................................................................................................. 102

7.3.1
Policy
Statement......................................................................................................................
102
7.3.2
Objective
...................................................................................................................................
102
7.3.3
Scope
.........................................................................................................................................
. 102
7.3.4
Responsibility
........................................................................................................................... 102
7.3.4.1 Basic Procedure and
Guidelines......................................................................................................... 102
7.3.4.2 Salary Advances from Current Months Pay
..................................................................................... 103
7.3.4.3 Advances Secured by Provident Fund
............................................................................................... 103
7.3.4.4 Travel Advances
................................................................................................................................... 103
7.3.4.5 Reconciling Advances
.......................................................................................................................... 104
7.3.4.6 Miscellaneous Advances
...................................................................................................................... 105
7.3.4.7
Review...........................................................................................................................................
......... 106
7.4 INVENTORIES
......................................................................................................................................
108
7.4.1
Responsibility
........................................................................................................................... 108
7.4.1.1 Receipt of inventory items
................................................................................................................. 108
7.4.1.2 Inventory Records Maintained by the Accounts and Finance
Department........................................ 109
7.4.1.3 Departments Reporting Changes in Status of Inventory
................................................................ 109
7.4.2
Inventory Control Tools
.......................................................................................................... 110
7.4.3
Valuation
...................................................................................................................................
110
7.4.4
Recording of inventory
........................................................................................................... 110
7.4.5
Proper safeguarding
................................................................................................................ 111
7.4.6
Unusable
Inventory.................................................................................................................. 111
7.4.7
Physical Annual Counting
....................................................................................................... 111
7.4.8
Quantity Adjustment
.............................................................................................................. 111
7.5 TREASURY
MANAGEMENT..................................................................................................................
112
7.5.1
Cash Collection, Deposit and Reconciliation
...................................................................... 112

7.5.1.1 Scope
.....................................................................................................................................................
. 112
7.5.1.2 Responsibility
........................................................................................................................................ 112
7.5.1.2.1
Collection....................................................................................................................................
. 113
7.5.1.2.2 Departments Authorized to Collect
Money.......................................................................... 113
7.5.1.2.3 Money Received by Unauthorized Personnel
...................................................................... 113
7.5.1.2.4 Maintaining Current and Accurate Records
......................................................................... 114
7.5.1.2.5 Training and Assistance for Departments
............................................................................ 114
7.5.1.2.6 Overages and Shortages
........................................................................................................... 115
7.5.1.2.7 Deposit of Cash Receipts
.......................................................................................................... 115
7.5.1.2.8 Frequency of Deposits
.............................................................................................................. 115
7.5.1.2.9 Safekeeping of Cash
.................................................................................................................. 116
7.5.1.2.10 Segregation of
Duties.............................................................................................................. 116
7.5.1.2.11 Reconciliation and Review
.................................................................................................... 117
7.5.2
Petty Cash Management
......................................................................................................... 118
........................................................................................................................................ 118
7.5.2.2 Procedure
.............................................................................................................................................. 119
7.5.2.2.1 Appointment of Petty Cash Custodian
.................................................................................. 119
7.5.2.2.2
Responsibilities...........................................................................................................................
120
7.5.2.2.3 Safekeeping
................................................................................................................................. 120
7.5.2.2.4 Segregation of Duties
................................................................................................................ 121
7.5.2.2.5 Documentation
........................................................................................................................... 121
............................................................................................................................. 121
7.5.2.2.7 Reimbursement petty Cash Fund
........................................................................................... 122
7.5.2.2.8 Cash Disbursements from Petty
Cash.................................................................................... 122
7.5.2.2.9 Reporting Stolen or Lost Petty
Cash...................................................................................... 123
7.5.2.2.10 Closing a Petty Cash
Account................................................................................................ 123
7.5.3
Cash Disbursement
.................................................................................................................. 123
........................................................................................................................................ 124
7.5.3.1.1 Authorization and Processing of Disbursement
.................................................................. 124
7.5.3.1.2 Disbursement Requests
............................................................................................................ 125

7.5.3.1.3 Cash Payment to
Employees.................................................................................................... 126
7.5.3.1.4 Travel Reimbursement
............................................................................................................. 126

7.5.3.1.5 Cash Disbursements Cancelled / Stop

Payment:................................................................. 127
7.5.3.1.6 Cash Disbursements Petty
Cash.............................................................................................. 127
7.5.3.1.7 Cash Disbursements Internal Control
.................................................................................... 127
7.5.3.1.8 Review
.......................................................................................................................................... 127
7.5.4
Bank Account Opening, Closing and Maintenance
............................................................. 128
........................................................................................................................................ 128
7.5.4.1.1 Authorization for Opening and Closing Accounts
............................................................... 129
7.5.4.1.2 Authorized Signatories for Wire Transfers, Cheques, and Drafts ..................................
130
7.5.4.1.3 Recording Bank Accounts and Related Activity in the General Ledger.........................
130
7.5.4.1.4 Administration and Oversight of LEPARK Bank Accounts
.................................................... 131
7.5.4.1.5 Authorized Signatories
............................................................................................................. 131
7.5.5
Cheque Acceptance
................................................................................................................. 132
........................................................................................................................................ 132
7.5.5.1.1 Limitations on Acceptance of
Cheques................................................................................. 134
7.5.5.1.2 Foreign Cheques
........................................................................................................................ 135
7.5.5.1.3 Cheque
Encashment.................................................................................................................. 135
7.5.5.1.4 Security
........................................................................................................................................ 136
7.5.5.1.5 Training
........................................................................................................................................ 136
7.5.5.1.6 Accounting
Entry........................................................................................................................ 137
7.5.6
Bank Reconciliation Statement
............................................................................................. 137
........................................................................................................................................ 137
7.5.6.1.1 Guidelines for bank reconciliations
....................................................................................... 138
7.5.6.1.2 Report
Preparation.................................................................................................................... 139
7.5.6.1.3 Comparing the Bank Statement to the Cash
book.............................................................. 140
7.5.6.1.4 Bank Reconciliation
Record..................................................................................................... 140
7.5.6.1.5 Management Review and Approval
........................................................................................ 140
8. ACCOUNTING FOR
LIABILITIES........................................................................................................
....141
8.1 ACCOUNTS PAYABLES
......................................................................................................................... 141
8.1.1
Responsibility
........................................................................................................................... 141
8.1.1.1 Recording of Accounts Payable
.......................................................................................................... 141

8.1.1.2 Accounts Payable Cut-Off
................................................................................................................... 141
8.1.1.3 Authorization
........................................................................................................................................ 142
8.1.1.4 Establishment of Control Devices
...................................................................................................... 142
8.1.1.5 Reconciliation of Accounts Payable Subsidiary Ledger to General Ledger
....................................... 142
8.1.1.6 Vouchers
Processing............................................................................................................................. 143
8.1.1.7 Payment of Purchase Order Invoices
................................................................................................ 143
8.1.1.8 Amendments to Invoices and Credit Adjustment
Notes................................................................. 144
8.2 OTHER
LIABILITIES..........................................................................................................................
..... 144
8.2.1
Responsibility
........................................................................................................................... 144
8.2.1.1 Basis of Accounting
.............................................................................................................................. 145
8.2.1.2 Accrual
Process.....................................................................................................................................
145
8.2.1.3
Recording.......................................................................................................................................
........ 145
8.2.1.4 Reconciliation with the Subsidiary Ledgers
..................................................................................... 145
8.2.1.5 Authorization
........................................................................................................................................ 146
9. ACCOUNTING FOR REVENUE

............................................................................................................. .147
9.1 RESPONSIBILITY
.................................................................................................................................. 147
10. ACCOUNTING FOR EXPENSES
........................................................................................................ .149
10.1 PAYROLL EXPENSES
............................................................................................................................. 149
10.1.1 Responsibility
........................................................................................................................... 150
10.1.1.1
Payroll
preparation.......................................................................................................................... 150
10.1.1.2
Payroll
Administration..................................................................................................................... 151
10.1.1.3
Changes in Payroll Data
.................................................................................................................. 151
10.1.1.4
Payroll Deductions and Reductions
............................................................................................... 153
10.1.1.5
Payroll Taxes
.................................................................................................................................... 153

10.1.1.6
Personnel Activity Reports
............................................................................................................. 153
10.1.1.7
Review of Payroll
............................................................................................................................. 154
10.1.1.8
Separation of Functional Responsibilities
.................................................................................... 154
10.1.1.9
Treatment of Payroll Information
................................................................................................. 154
10.1.1.10 Special Payments to Employees
.................................................................................................... 155
10.1.1.11 Cash Payment Procedure
................................................................................................................ 155
10.1.1.12 Payment through Bank
.................................................................................................................... 155
10.1.1.13 Filing
..................................................................................................................................................
156
10.1.1.14 Reconciliations
................................................................................................................................. 156
10.2 OTHER THAN PAYROLL EXPENSES

....................................................................................................... 159
........................................................................................................................... 159
10.2.2 Procedure
.................................................................................................................................. 160
10.2.2.1
Recording
.......................................................................................................................................... 160
10.2.2.2
Methods for Determining
Amounts................................................................................................ 160
10.2.2.3
Reimbursement
................................................................................................................................ 160
10.2.2.4
Authorization and
Approval............................................................................................................ 161
10.3 PAYMENTS UNDER THE CONTRACTS FOR CIVIL WORKS

..................................................................... 162
10.3.1 Objective
...................................................................................................................................
162
10.3.2 Advance Payments
................................................................................................................... 162
10.3.3 Progress Payments
................................................................................................................... 162
10.3.4 Retention Moneys
.................................................................................................................... 162
10.3.5 Currency of
Payment............................................................................................................... 163
10.3.6 Payments
...................................................................................................................................
163
11. INVESTMENT ACCOUNTING FUNCTION
..........................................................................................164
11.1 CLASSIFICATION OF INVESTMENTS
..................................................................................................... 164
11.1.1 Held to maturity
securities.................................................................................................... 164
11.1.2 Available for sale securities
.................................................................................................. 164
11.1.3 Held for trading
securities..................................................................................................... 165

11.2 VALUATION OF
INVESTMENT.............................................................................................................. 165
11.3 REVALUATION
SURPLUS/DEFICIT........................................................................................................ 166
12. BUDGETING
.........................................................................................................................
..........167
12.1 RESPONSIBILITY
.................................................................................................................................. 167
12.1.1 Budget
Segments......................................................................................................................
168
12.1.1.1
Budgeting by Operational Unit
...................................................................................................... 168
12.1.1.2
Budgeting by Fund
........................................................................................................................... 168
12.1.2 Overview of the Budgeting Process

...................................................................................... 168
12.1.2.1
Financial Planning and Analysis
..................................................................................................... 168
12.1.2.2
Developing the Budget
.................................................................................................................... 169
12.1.2.3
Allocation of Budget
........................................................................................................................ 169
12.1.2.4
Estimating Revenues
....................................................................................................................... 170
12.1.2.5
Estimating Expenditures
................................................................................................................. 170
12.1.2.6
Budget Hearings
............................................................................................................................... 171
12.1.2.7
Revisions and Adjustments to Draft Budget
................................................................................ 172
12.1.2.8
Approval and Ratification of Budget by Board of Directors
...................................................... 172
12.1.2.9
Execution and Maintenance of Budget
......................................................................................... 173
12.1.2.10 Monitoring of Actual Revenues and Expenditures to Budget
.................................................... 173
12.1.2.11 Utilization of Contingency Funds
.................................................................................................. 174
13. PREAUDIT
.........................................................................................................................
............175
13.1 RESPONSIBILITY
.................................................................................................................................. 175
13.1.1
Reporting...........................................................................................................................
........ 175
13.2 PROCEDURE
........................................................................................................................................
176
14.
REPORTING........................................................................................................
............................178

14.1 RESPONSIBILITY
.................................................................................................................................. 178
14.1.1 Report on Internal Controls
................................................................................................... 179
14.1.2 Chief Financial Officer
Review.............................................................................................. 179
14.1.3 Reporting
Schedule.................................................................................................................. 179
14.1.4 Expense Summary Report
....................................................................................................... 180
14.1.5 Cash
forecasting.......................................................................................................................
180
14.1.6 Quarterly Budget Variance Report
....................................................................................... 180
14.1.7 Aging of
Creditors.................................................................................................................... 180
14.1.8 General Ledger Detailed Listing Reports
............................................................................ 180
14.1.9 Balance Sheet
........................................................................................................................... 180
14.1.10
Capital Asset
Reports.......................................................................................................... 181
14.1.11
Donor Specific
Reports........................................................................................................ 181
14.1.12
General Guidelines
.............................................................................................................. 181
APPENDICES......................................................................................................
........................................182
CHART OF ACCOUNT
.........................................................................................................................
........183
CASH ADVANCE / DISBURSEMENT REQUEST FORM
...................................................................................194
ACKNOWLEDGEMENT RECEIPT
................................................................................................................. .195
STATUS OF FUNDS
.........................................................................................................................
...........196
CONSOLIDATED REVENUE
BUDGET........................................................................................................... .
197
PROCUREMENT BUDGET
(QUANTITATIVE).................................................................................................
198
MONTHWISE MATERIAL CONSUMPTION FORECAST
(QUANTITATIVE).......................................................199
MONTHWISE FORECAST FORADMINISTRATIVE AND GENERAL EXPENSES
.................................................200
MONTHWISE FORECAST FORFINANCIAL AND OTHER
EXPENSES................................................................201

CAPITAL EXPENDITURE FORECAST
............................................................................................................ .202
CASH FORECAST
.........................................................................................................................
...............203
PROJECTED PROFIT AND LOSS ACCOUNT
...................................................................................................205
PROJECTED BALANCE SHEET
..................................................................................................................... .2
07
BUDGET REVISION AUTHORISATION REQUEST
..........................................................................................210
PAYMENT VOUCHER
.........................................................................................................................
........212
JOURNAL VOUCHER
.........................................................................................................................
.........213
BANK BOOK: MONTH OF
................................................................
.................214
BANK BOOK: MONTH OF
................................................................
.................215
JOURNAL BOOK: MONTH OF
...........................................................................
.....................216
MONTHLY ABSTRACT OF JOURNAL BOOK:
.................................................................................................217
MONTHLY ABSTRACT OF JOURNAL BOOK:
.................................................................................................218
GENERAL LEDGER: FINANCIAL YEAR ENDING
.........................................................
.............219
SUBSIDIARY LEDGER:
FINANCIAL YEAR ENDING
..........................................................220
SUB PROJECT/ WORKS: SUBSIDIARY LEDGER:
YEAR ENDING
..................221
CONTRACTORS/CONSULTANTS SUBSIDIARY LEDGER:
FINANCIAL YEAR ENDING
FINANCIAL
......222
SUB PROJECTS/WORKS REGISTER

............................................................................................................. .223

CONTRACTORS/CONSULTANTS REGISTER
................................................................................................224
PETTY CASH VOUCHER
.........................................................................................................................
.....225
PETTY CASH BOOK: MONTH OF
..............226
........................................................
ABSTRACT OF PAYMENTS DURING THE MONTH OF

.......227
..........................................
ASSET DISPOSAL FORM

.........................................................................................................................
....228
BILL /
INVOICE.............................................................................................................
..............................234
COMMITTEES ....................................................................................................
........................................235
EXPENSE
PROCESS...........................................................................................................
..........................236
PAYROLL EXPENSE PROCESS
..................................................................................................................... .2
37
STATEMENT OF FINANCIAL POSITION
....................................................................................................... .238
INCOME AND EXPENDITURE STATEMENT
..................................................................................................240
STATEMENT OF CASH FLOWS
................................................................................................................... .24
1
STATEMENT OF CHANGES IN ACCUMULATED FUNDS FOR THE PERIOD FROM
MONTH/DAY/YEAR TO MONTH/DAY/YEAR
.......................................................................................................................
............243

1.
INTRODUCTION
1.1
GENERAL INFORMATION
Lahore Parking Company Ltd was established as a company limited by guarantee

incorporated under section 32 of the Companies Ordinance, 1984 by the City
District Government Lahore. The Principle activities of the company are to offer
sustainable, efficient and affordable Parking services for the citizens of Lahore. The
registered office of the company is situated at 17th floor, Arfa Software Technology
Park, Ferozepur Road, Lahore, PAKISTAN.
This Accounting and Financial Reporting manual has been prepared to provide
guidance to the employees of the Accounts and Finance Department of Lahore
Parking Company Ltd (LEPARK) on all major areas of the accounting and financial
reporting process. The purpose of this manual is to develop their understanding of
the accounting policies and procedures to achieve the goals and objectives of each
financial aspect of the Organization and to provide reliable and accurate
information in line with the provisions of Companies Ordinance 1984 and
International Accounting Standards (IAS) applicable in Pakistan.
This manual lays down comprehensive policies and procedures to be followed by
the Accounts and Finance Department. The policies stated herein are minimum
requirements under normal conditions and are intended to assist the accounting
personnel in the preparation of accurate and reliable financial information and its
reporting to the management.
1.2
VISION STATEMENT AND VALUES
Accounts and Finance Department is an operating department of LEPARK and is

characterized by:
Providing centralized services of accounting and treasury management to

LEPARK.
Providing valued service and response to LEPARK financial
needs.
Remaining current with finance and accounting rules and regulations and
interpreting them for the benefit of all users of accounting services.
Using current technologies in the implementation of best accounting and

treasury management practices.
Recognizing change as an essential process critical to the financial

development of LEPARK, and facilitating financial change for the effective
utilization of resources in the accomplishment of LEPARK mission and vision.
1.3
OBJECTIVES
The purpose of this manual is to establish self-acting standards, providing a clear

understanding of responsibilities of staff in the Accounts and Finance Department
of LEPARK. The policies and procedures stated in this manual will ensure better
understanding amongst the staff members with regard to the performance of their
duties.
The main objective of this manual is to provide the Accounts and Finance
Department with a ready reference guide that helps the users of this manual with
understanding standard operating policies and procedures for efficient a n d
effective performance of their accounting and finance duties.
After the implementation of this manual, the Accounts and Finance Department
shall become fully conversant with all aspects of the accounting and financial
reporting function of LEPARK.
1.4
SCOPE
This manual shall be reviewed and approved by the Board of Directors of

LEPARK.
The policies and procedures prescribed in this manual shall apply to all accounting
and finance related matters of LEPARK and are applicable to the Accounts and
Finance Department in particular. Any breach of these policies must be reported to
the Chief Financial Officer (CFO).
Finance department - Lahore Parking Company Ltd
Page 1 0
1.5
TERMS USED IN THE MANUAL

Terms
Description
Accounting Records
The manual and computerized records of

assets and liabilities, monetary transactions;
various journals, ledgers, and supporting
documents (such as agreements, cheques,
invoices, vouchers) and books of accounts,
which LEPARK is required to keep in
pursuance of legal obligations and in the
transactions of business.
Accounts Payables
The obligation to pay off a short term debt

to its creditors and represent obligations
arising from
the
ongoing
operations
including the acquisition of supplies and
services.
Accounts Receivable
The money owed to LEPARK as a result of

various types of financial transactions,
including, but not limited to Monthly fees,
Parking collection fees, advances to vendors,
companies awarded contracts for fee
collection, operation of Sites, receivables
from other entities collecting fees, fines,
charges on behalf of LEPARK (like LDA or City
District Government Lahore) and other
impositions and fees.
Accounts Written Off
Accounts receivables which in the opinion of

the management have no chance of recovery
after exhausting all avenues and has
determined them to be uncollectible.
Writing off a debt receivable for accounting
purposes does not discharge the debt. The
debt is still owed to LEPARK, but is no longer
reported in LEPARKs books of accounts as
account receivable.
Acquisition Cost
The net invoice price of fixed assets

including the cost of modifications,
attachments, accessories, or
auxiliary
apparatus necessary to bring the asset in
usable condition. Other charges such as the
cost of installation, transportation, taxes,
duty or protective in-transit insurance, shall
be included in the acquisition cost.
Allowance For Doubtful
The management's estimate of that portion
Terms
Description
Accounts
of gross receivables which shall be or shall

prove to be uncollectible.
Asset
Something valuable that an entity owns,

benefits from, or has right to use of in
generating income. It is a resource:
i.
Controlled by LEPARK as a result

of past events; and
ii.
From which future economic benefits

are expected to flow to LEPARK.
Bank Reconciliation
Process of matching and comparing figures

from accounting records against those
presented on a bank statement. After
adjusting any item which has no relation to
the bank statement, the balance of the
accounting ledger shall reconcile to the
balance of the bank statement.
Bank Reconciliation Statement
Statement showing the comparison of cash

book balance with the bank statement
balance.
Bank Statement
A copy issued by a bank to a customer

showing the customer's account maintained
at the bank.
Budget
A plan of financial operation embodying an

estimate of proposed expenditures for a
given period and the proposed means of
financing them.
Capitalized Fixed Assets
Capitalized fixed assets are those which

have a useful life of more than one year and
have to be capitalized as per policy of
LEPARK.
Cash
Refers to money in the physical form of

currency, such as bank notes and coins.
Cash Advance Request Form
A form specifically designed for acquiring

cash advances. The expenses using the
advance must agree with the original
purpose of the advance and include
necessary details.
Cash Book
A book used to record details of cash moving

in and out of LEPARK record.
Terms
Description
Cash Register
Manual or electronic device for calculating

and recording cash transactions, and an
attached cash drawer for storing currency.
Cashier's Cheque
A cheque purchased at a bank for any

amount; the bank completes all information
on the face of the cheque with a bank
officer signing as the maker.
Certified Cheque
A personal cheque guaranteed by the bank;

the cheque is stamped "certified" and signed
by a bank officer.
Chart of Accounts
Framework for the general ledger system

and basis for accounting system. The chart
of accounts consists of account titles and
account numbers assigned to the titles.
Cost Center
Unit or department of LEPARK to which costs

can be allocated and apportioned on a
reasonable basis.
Custodian
An individual responsible for safeguarding

cash.
Demand Draft
Demand draft is a written order for making

payments. It is also called in short form as
DD (Demand Draft). The person making
payments is called drawee and the recipient
is called payee. The bank providing the
service is called drawer.
Deposit
The sum that LEPARK shall pay in advance as

per the terms of the contract/agreement as
a security and shall be refundable at the
completion of the contract/ agreement.
Deposit Slip
A form specifically designed for the

depositing the cash into bank accounts.
Disbursement Request Form
A form specifically designed for the cash

disbursement purpose.
Disbursement Vouchers
The vouchers used to request payments for

any goods, services, or other miscellaneous
payments that are not covered by a
purchase order.
Disbursements Journal
A book or log where cash disbursements are

recorded sequentially.
Terms
Description
Expense
General expense including LEPARK supplies,

office
repair,
vehicle
running
and
maintenance,
postage,
utilities,
reimbursement of travel and the like which
are related to the operations of LEPARK.
Fair Value
The amount for which an asset could be

exchanged and liability be settled between
knowledgeable, willing parties in an arms
length transaction.
Finance Lease
A lease that transfers substantially all the

risks and rewards incidental to ownership of
an asset. Title may or may not eventually be
transferred.
Financial Report
An
accounting
of
expenditures
and
obligations incurred during the period of
performance and/or at the conclusion of the
sponsored project. The financial report
reflects LEPARKs official accounting records.
Fiscal Year
A twelve months period over which a

company budgets its spending. Fiscal year of
LEPARK is established for the period ending
on
31st July.
Fixed Asset (also known as a non-current
asset) may be land, land improvement,
building,
infrastructure,
equipment,
furniture & fixtures, vehicles and computers
which has a life expectancy (i.e. usage
period) of more than one year. Items with a
life expectancy of one year or less are
considered to be consumable items.
Fixed Asset
Fixed Assets Register
A register to be maintained as per the

requirements of law and which contains
complete record of tangible fixed assets.
The information contained in fixed assets
register includes description of the asset,
assets location, cost, depreciation charged
and other particulars relating to a fixed
asset.
Fixture
The equipment that is attached or

permanently fastened to a building and
cannot be removed without costly or
extensive alterations to the building or area
Terms
Description
in which it is affixed.
Foreign Cheque
Any cheque not drawn on a Pakistani bank,

or which does not have a Pakistani clearing
bank listed on it.
Forgery
The crime of falsely or fraudulently making

or altering a document.
Fraud
The
intentional
misrepresentation in
something of value.
General Ledger
A group of accounts that supports the

information
shown
in
the
financial
statements. The general ledger is used to
accumulate all financial transactions of
LEPARK, and is supported by subsidiary
ledgers that provide details for certain
accounts in the general ledger. The general
ledger
is
the
foundation
for
the
accumulation of data and reports.
Ineligible Cheque
Ineligible Cheque means a cheque if:

It is post-dated;
The identity of the cheque writer is
unknown or unconfirmed;
There is no amount, date, or signature
on the cheque;
It has not been processed by a bank; and
The cheque involves an extension of
credit or payment on an account.
Initial Cost
The assets purchase price plus any costs

directly attributable to bringing the asset to
the location and condition necessary for it to
be capable of use in the manner intended.
Directly attributable costs could include, but
are not limited to, site preparation costs,
initial
delivery
and
handling
costs,
installation and assembly costs, asset testing
costs, and professional fees. Initial cost does
not include costs of advertising, conducting
business and administration (e.g. staff
training), other general overheads, or cost
of relocating or reorganizing.
Intangible Asset
An identifiable non-monetary asset without
deception
or
order to obtain
Terms
Description
physical substance.
Inventories
Inventories in the context of LEPARK

supplies and stores means:
Consumables used on site.
Computer supplies.
Materials or supplies of general use to be
consumed in LEPARK and its departments
(e.g. Stationeries).
Manager Administration
An individual responsible for safeguarding

petty cash.
Operating Lease
A lease other than finance lease.
Other Liabilities
Represents obligations to outside parties

other than accounts payable who have
furnished resources to LEPARK.
Pay Order
A payment instrument which is used by the

banks to settle payment obligations on
behalf of their customers. This instrument is
guaranteed by the bank for its full value and
is similar to a demand draft. In practice,
these instruments are payable at the branch
of issue and are used for payment within the
local clearing jurisdiction.
Payroll And Benefits
shall include items such as:
Salaries
Wages
Bonuses & commissions to employees
Overtime pay
Payroll related costs:
Social security
Medicare
Federal income tax
EOBI
Worker compensation insurance

Employer paid benefits:
Holidays
Vacations
Terms
Description
Sick days
Insurance (health, dental, vision, life,
disability)
Personal Cheque
A cheque payable on demand, drawn on a

bank by a depositor; a personal cheque is
written against an individual's funds as
opposed to a cashier's cheque, certified
cheque, money order, or traveler's cheque,
all of which are written against bank funds.
Petty Cash
A small amount of discretionary funds in the

form of cash used for expenditures where it is
not practical to make the disbursement by
cheque.
Pre-Audit
Pre-Audit is a process of internal control by

which all payments processed by the
Accounts and Finance Department are
counter checked for accuracy, authority and
other approvals, before the check is finally
signed by the concerned officers.
Returned Cheque
A cheque which fails to clear the account on

which it is drawn.
Standing Order
An order by the customers to their banker to

pay a specified amount usually on or around
a particular day of the month regularly to
another account.
Tag
To place a control number of LEPARK on a

piece of equipment or property.
Timing Difference
A difference that clears over a period of

time.
Treasury Management
Optimization of cash flow and security of all

cash collected, managed and disbursed.
Un-Presented Cheque
A cheque paid out which is passing through

the bank clearing system, but has not yet
been presented to the bank where the
account is maintained.
Useful Life
The period over which an asset is expected

to be available for use by LEPARK. It is
determined in relation to an entire asset
category, as opposed to an individual asset
and after considering the factors such as
Terms
Description
expected usage, physical wear and tear,
technical or commercial obsolescence, legal
or other limits.
Weighted Average
An average in which each quantity to be

measured is assigned a weight. These
weightages
determine
the
relative
importance of each quantity on the average.
This average takes into account the
proportional relevance of each component,
rather than treating each component
equally.
Wire Transfer
A method of transferring money between

bank accounts.
2.
CUSTODY AND REVISION

2.1
CUSTODY
This manual shall remain in the permanent custody of the following office bearers:
Managing
Director
Chief Financial Officer

(CFO)
This manual shall remain the property of LEPARK; therefore, copies of this manual
must not be provided to any external party except with the prior approval of
LEPARK Board. However, access to this Manual shall not be restricted from such
external parties who are entitled to it in accordance with the provisions of any law
for the time being in force or in accordance with their terms of engagement.
2.2
VERSION CONTROL
This manual contains policy statement of LEPARK; therefore, it is subject to a high

level and strict change control process. Changes in statutes, LEPARKs legal form &
other conditions and practices may require periodic modifications of these policies
and procedures. The overall responsibility for maintaining and updating this manual
therefore resides with the LEPARK Board who will be duly notified about the
proposed changes in the manual through circulation.
Feedbacks, comments, corrections and improvement suggestions on this policy
manual (including any areas that are not sufficiently or well covered) can be
received from those who were informed about the required changes through the
circular.
The Chief Financial Officer (CFO) shall collect feedback from other reviewers on
the following template:
Name:
Designation:
Date:
Section number
Comments & suggested changes
General
Signature:
(N/A if submitted through official email)
3.
ROLES & RESPONSIBILITIES

3.1
FISCAL ROLES
The following diagram illustrates the types and related hierarchy of fiscal roles
within the Lahore Parking Company Ltd (LEPARK) management.
Board of Directors
Managing Director
Chief Financial Officer
Senior Manager Finance
Manager Accounts
Assistant Manager
Accounts
Fiscal Staff (Others)
The Board of Directors is the principal administrative body of LEPARK. The Managing
Director shall be responsible for compliance of all fiscal matters of LEPARK with
applicable laws, policies and regulations as may be devised by the Board. The powers
of the Board of Directors are defined in the constitution of LEPARK.
The staff in the Accounts and Finance Department including CFO, Senior Manager
Finance, Managers and their Assistants shall be responsible for fiscal activities in
LEPARK in accordance with their roles and responsibilities.
3.2
FISCAL RESPONSIBILITIES
The following fiscal responsibilities are set forth to facilitate LEPARKs financial
Page 2 0
management with the recognition that a financial management system is sound in

design.
Therefore, it is important to recognize that LEPARK management shall carry out the
following financial management responsibilities in order to reasonably prevent
fiscal misconduct and other errors, and where prevention is not achieved despite
the Employees reasonable efforts, to provide for timely detection and reporting.
LEPARK,
through
the
HR
Department,
shall
provide
training
and
development support to fiscal roles and responsibilities.
All Fiscal Employees are entrusted with the responsibility of preserving

LEPARK resources and using those resources in a prudent manner for their
designated purposes, as provided by policies, laws, regulations, rules,
contracts, grants, and donor agreements (if any).
Fiscal Employees who personally participate in a fiscal transaction have the

following fiscal responsibilities as appropriate to their level of involvement:
Personal participation is required by at least two individuals in every

transaction.
Personal participation is evidenced and certified on each transaction by

a signature on the Fiscal Transaction.
Ensuring that the fiscal transaction:

a)
Has proper authorization, including requisite reviews.
b)
Results in no violation of the applicable conflict of interest policy or

law.
c)
Has adequate funds allocated or otherwise available within

regularly approved budgets to cover it (specific to expenditures).
d)
Occurs after reasonable consideration of the impact on LEPARK.
e)
Is in accordance with all LEPARK and other applicable policies,

laws, regulations, and rules, and contracts, grants and donor
agreements.
Ensuring that the fiscal transaction is recorded in LEPARKs finance

system:
a) In a timely manner.
b) In the accounting period to which it relates.
c) Using adequate descriptions of transactions and correct account
code. d) In accordance with all other LEPARK accounting policies.
3.2.1 Board of Directors

The Board of Directors of LEPARK shall be overall responsible for the management
of the LEPARK. The role and functions of the board shall be as defined in the
Management Manual. However, in respect of financial management, the board
may nominate its member/members on the finance committees of LEPARK. The
managing director as a representative of the board is responsible for day to day
running of the business of LEPARK.
3.2.2 Managing Director
Role and Responsibilities of Managing Director
To appoint various fiscal related committees who shall be accountable to

the Managing Director.
To have primary planning responsibility for all fiscal activities within LEPARK.
Incorporate all subsidiary plans into a master comprehensive long range
plan and submit it to the Board of Directors for approval.
To recommend for the revision of accounting and financial reporting manual

from time to time as is necessary for efficient management of LEPARK and
compliance with law and regulations.
To assist the Board of Directors in complying with their role under the
corporate governance and lead their thinking in terms of policy making and
long range fiscal planning.
To approve all changes in ranks, positions, job titles and salaries of fiscal
personnel.
To terminate services of fiscal staff and appoint new staff on their positions
when required within the policies and regulations of LEPARK.
To be responsible for finance and all LEPARK business working with and
through the GM Operations, GM Revenue, GM HR & Admin and Chief Financial
Officer (CFO).
To
safeguard
LEPARK
assets
with
responsibility
for
maintenance,
improvement, and also prudent investment of funds.
To exercise management of the entire property of LEPARK.
To establish proper business procedures, including adequate safeguards to

see that all financial and other business transactions are carried out in a
professional and efficient manner.
To be responsible for annual budget:
To work with the Chief Financial Officer (CFO) in its preparation.
To submit the budget to the Board of Directors for their approval.
To take appropriate actions to ensure budget compliance.
To forward periodical and annual budget summaries to the Board.
Long range planning including recommendations on new s ites, major

improvements in revenue collection, purchase of additional equipment
and all related matters.
To be responsible for all financial campaigns undertaken by LEPARK.
To work closely with the Board of Directors and to keep its members
informed of key management and fiscal decisions.
To seek the counsel and advise of the Board of Directors and its committees
on policies and objectives.
To make an interim and annual report on all fiscal activities of LEPARK.
To recommend new policies or changes in LEPARK policies to the Board of

Directors.
3.2.3 Chief Financial Officer (CFO)
To provide for the safeguarding and protection of all funds received by

LEPARK.
To provide for authorization of expenditures and for the disbursement of

funds in payment of all current bills of LEPARK.
To oversee the hiring, supervising, coordinating, disciplining, retiring and

termination of fiscal staff of LEPARK in accordance with approved policies of
LEPARK.
To supervise the accounting system and make certain that accounting

records are maintained in an orderly manner.
To set up safeguards in cash disbursement.
To prepare timely and accurate report on the financial operations of LEPARK.
Review and submission of monthly and periodical reports to Managing Director.
To be responsible for the reconciliation of the accounting system to ensure its

integrity and the integrity of the reports produced from accounting records.
To prepare the operating budget of LEPARK in coordination with other

departments.
To make arrangements for the annual independent financial audit.
To implement appropriate recommendations from independent auditors

that impact financial operations of LEPARK.
To invest the funds in accordance with investment policies of LEPARK.
To maintain cash accounts in profitable banking accounts.
To assist the Managing Director in the strategic planning process particularly

with regard to the development of financial plans.
To perform such other duties as may be assigned by the Managing Director

from time to time.
3.2.4 Senior Manager Finance
Monitoring the daily operations of the Accounts and Finance Department

regarding collections, payments, book keeping of LEPARK and to assist in
preparation of budget & cash flow monitoring.
Preparation of monthly management accounts.
Review of the payroll and payroll certificates and statements needed by the
employees.
Implementation of Policies and Procedures regarding fiscal matters.
Review of job being carried out by his subordinates.
Prepare lease vs. Buy analysis before leasing any asset.
Dealing with Income tax Department, EOBI, Social Security and other
related Government Departments.
Coordinating with external auditors and providing information required for

completion of audit.
Cooperate with the internal audit department to prevent frauds and

misappropriation of funds.
Dealing with banks.
Provide support to Chief Financial Officer in investment of funds.
Other duties assigned by the Chief Financial Officer from time to time.
3.2.5 Manager Accounts-I
Checking of all LEPARK vouchers including all salary sheets.
Checking of day to day cash and bank payment vouchers.
Checking of monthly salary sheets prepared by the HR department.
Checking of all bills from external parties, suppliers and service providers.
Monthly E.O.B.I and Social Security contribution payment and provident

fund contributions.
Preparation of monthly and annual staff Income tax statements.
Guidance to new staff for opening of bank account for salary transfer.
Correspondence with external parties through letters etc.
Other duties assigned by the Chief Financial Officer from time to time.
3.2.6 Manager Accounts-II
Prepare budgets for Projects and Sites to be taken over by LEPARK.
Managing the payments according to the approved budget.
Approving the payroll of the regular staff.
Approving the payroll of the contract/work-charged staff.
Approve payments of other routine and regular payments related with the
CDGL/Projects.
Drawing and paying the contributions to GP fund, pension fund and others
for the staff on deputation to the respective offices for credit to their
accounts.
4.
SIGNIFICANT ACCOUNTING POLICIES & PRINCIPLES

4.1
ACCOUNTING POLICIES
Accounting policies are the specific principles, bases, conventions, rules and
practices applied by LEPARK in preparing and presenting its financial statements.
Some of the significant accounting policies that may be applied in the preparation
and presentation of LEPARKs financial statements are depicted in the following
diagram:
A brief description of each of the significant accounting policies that is applicable

to financial statements of LEPARK is given in the following paragraphs:
4.1.1 Fixed Capital Expenditure
The fixed capital expenditure are stated at cost less accumulated depreciation and
comprise of fixed assets including land, building, plant & machinery, equipment,
computers, furniture, fittings, vehicles and other fixed assets, purchased by LEPARK
or acquired by it. Depreciation shall be charged to income on reducing balance
method whereby cost of fixed asset shall be written off over its estimated useful
life at the rates mentioned in the depreciation policy.
The fixed assets' residual values and useful lives are reviewed, at each financial
year end, and adjusted if impact on depreciation is significant.
Depreciation on additions to operating fixed assets is charged from the month in

which the asset is acquired or capitalized, while no depreciation is charged for the
month in which the asset is disposed off.
Maintenance and repairs are charged to expense as and when incurred. Major
renewals and improvements are capitalized and the assets so replaced, if any, are
retired. Gains and losses on disposals of fixed assets are included in the income and
expenditure account.
The carrying value of tangible assets is reviewed for impairment when events or
changes in circumstances indicate that this carrying value may not be recoverable.
If any indication exists and where the carrying value exceeds the estimated
recoverable amount, the assets are written down to their recoverable amount.
4.1.2 Intangible assets
The expenditure on intangible assets is stated at cost less accumulated
amortization and any provision for impairment. The intangible assets shall comprise
of expenditure that provides benefit for the period of more than one year.
Amortization is calculated from the month the assets are available for use using
the straight-line method, whereby the cost of the intangible asset is amortized
over its estimated useful life at the rate given in the amortization policy. The
useful life and amortization method is reviewed, and adjusted if appropriate at
each balance sheet date.
The carrying value of intangible assets is reviewed for impairment when events or
changes in circumstances indicate that this carrying value may not be recoverable.
If any indication exists and where the carrying value exceeds the estimated
recoverable amount, the assets are written down to their recoverable amount.
4.1.3 Revenue
The main source of Revenue of LEPARK is Parking fees that may be charged from
the Parking Sites for the collection of Parking Revenue. Other sources of revenue
include but not limited to revenue from:
1. Fee from Projects
2.
3.
Monthly charges from Companies

Advertisements
4.
Other fees
5.
Other miscellaneous income.
The revenue from these sources is recognized on receipt basis.

4.1.4 Employee benefits
LEPARK operates a contributory provident fund for all eligible employees who have
opted for this scheme. Equal contributions are made by LEPARK and employee to
the fund. Similarly LEPARK operates a health insurance scheme for all LEPARK
employees.
4.1.5 Taxation
Taxation is considered as one of the most important components of the financial
statements and holds an important position in the internal and external regulatory
requirements of the LEPARK. The Management must therefore keep in view the tax
laws introduced by the Government and the changes made from time to time in the
local tax laws and policies and assess the effect of these laws and the changes
therein on the taxes payable from its current activities.
In compliance with the tax laws, the Lahore Parking Company Ltd has acquired the
National Tax Number from the tax authorities and has been registered as a taxable
person as required in the Income Tax Ordinance, 2001.It is therefore required to
pay tax on its income, if any, and to deduct income tax as withholding agent from
all payments that it will make to its employees, suppliers, service providers and
contractors, etc as per the rates laid down in the Income Tax Ordinance, 2001 and
the amendments made in the Income Tax Ordinance, 2001 from time to time.
The responsibility for the compliance rests with the Chief Financial Officer (CFO).
The Provision for current taxation shall be based on taxable income, of LEPARK,
if any, calculated at the current rate of taxation after taking into account, tax
credits, tax rebates and exemptions available or minimum tax at the rate of one
percent of LEPARKs turnover, whichever is higher, as required under the Income Tax
Ordinance, 2001.
Sales Tax, if any, shall be charged on all taxable supplies made by LEPARK and shall
be reported in the monthly sales tax return as required under the Sales Tax Act,
1990.
The Accounts and Finance Department shall be responsible for looking after the
taxation matters of LEPARK. The annual income tax return shall be prepared and
submitted by the Accounts and Finance Department after taking into consideration
payments of advance tax made in order to arrive at the net tax liability. All
taxation documents shall be prepared by the manager accounts and shall be
reviewed
by
Senior
Manager
Finance.
Complex
taxation
issues
including
assessments, appeals, advice on tax matters, etc. shall be handled by an outside

tax consultant.
Withholding tax collected or deducted from payments made to the suppliers, profit
on debts, salaries etc. by LEPARK shall be deposited in Government Treasury within
the due date given in the Income Tax Rules, 2002, which presently is within seven
days from the end of each week ending on every Sunday, and accounted for at the
time of submission of quarterly withholding statement relating to such deductions
and a copy of such statement evidencing the payment to the tax authority shall be
filed with the Manager Accounts.
4.2
ACCOUNTING PRINCIPLES
Some of the accounting principles that may be applied in the preparation and
presentation of LEPARKs financial statements are depicted in the following
diagram:
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4.2.1 Historical cost principle

The value of LEPARK assets shall reflect the original cost of those assets under the
historical cost principles, less applicable depreciation or amortization. Historical
cost provides the actual cost of the asset at the time of its acquisition.
4.2.2 Matching Principle
The LEPARK shall recognize the revenue earned and expenditure incurred in the
income and expenditure statement on the basis of a direct association between the
income earned and the costs incurred to earn that income.
4.2.3 Full Disclosure Principle
Any information, whether or not strictly financial, that is relevant to the business
and may have a future impact, must be disclosed.
4.2.4 Accrual Basis
Financial statements of LEPARK are prepared on accrual basis of accounting. Under
this Principle, the effects of transactions and other events are recognized when
they occur (and not as cash or its equivalent are received or paid) and they are
recorded in the accounting records and reported in the financial statements of the
periods to which they relate.
4.2.5 Going Concern
The financial statements are prepared on the assumption that LEPARK is a going
concern and will continue in operation for a foreseeable future.
4.3
QUALITATIVE CHARACTERISTICS OF FINANCIAL STATEMENTS OF LEPARK
The financial statements of LEPARK shall contain the qualitative characteristics

depicted in the chart below to make the financial statements more presentable
and understandable to the users:
4.3.1 Understand ability

The information reflected in the financial statements of LEPARK should be easily
understandable by users of those financial statements.
4.3.2 Relevance
The Information presented in the financial statements should be relevant to its
components, be precise, and fulfill the decision-making needs of the users.
Information is relevant when it influences the economic decisions of the users by
helping them evaluate past, present or future events or confirming, or correcting,
their past evaluations.
4.3.3 Materiality
The financial statements should present all information which is material within
the context of the financial information reflected in the financial statements for
the benefit of the users.
Information is material if its omission or misstatement could influence the
economic decisions of users taken on the basis of the financial statements.
4.3.4 Reliability
The financial statements should present the information which is reliable.
Information has the quality of reliability when it is free from material error and
bias, and can be depended upon by the users.
4.3.5 Faithful Representation
The information reflected in the financial statements must represent faithfully the
transactions and other events it either purports to represent or could reasonably be
expected to represent.
4.3.6 Substance over Form
The financial statements should faithfully present the transactions and other events
relating to the business activities in accordance with their substance and economic
reality and not merely their legal form.
4.3.7 Neutrality
The information contained in the financial statements must be neutral, that is,
free from bias. Financial statements are not neutral if, by the selection or
presentation of information, they influence the making of a decision or judgment
in order to achieve a predetermined result or outcome.
4.3.8 Prudence
The preparers of financial statements do, however, have to contend with the
uncertainties that inevitably surround many events and circumstances, such as the
collectability of doubtful receivables.
Such uncertainties are recognized by the disclosure of their nature and extent and
by the exercise of prudence in the preparation of the financial statements.

Prudence is the inclusion of a degree of caution in the exercise of the judgments
needed in making the estimates required under conditions of uncertainty, such that
assets or income are not overstated and liabilities or expenses are not understated.
4.3.9
Completeness
To be reliable, the information presented in the financial statements must be

complete within the bounds of materiality and cost. An omission can cause
information to be false or misleading and thus unreliable and deficient in terms of
its relevance.
4.3.10 Comparability
The financial statements should be prepared in a manner that the financial results
of one year can be easily compared with the results of the previous years. The
Users must be able to compare the financial statements of LEPARK in order to
identify trends in its financial position and performance over a number of years.
4.3.11 Timeliness
The financial statements should be presented to the users in a timely manner to
facilitate the decision making process. If there is undue delay in the reporting of
information it may lose its relevance. The Management may need to balance the
relative merits of timely reporting and the provision of reliable information. To
provide information on a timely basis it may often be necessary to report the
financial information before all aspects of a transaction or other events are known,
thus impairing reliability. Conversely, if reporting is delayed until all aspects are
known, the information may be highly reliable but of little use to the decision
makers who have had to make decisions in the interim. In achieving a balance
between relevance and reliability, the overriding consideration should be how best
to satisfy the economic decision-making needs of the users.
5.
CHART OF ACCOUNTS
The chart of accounts includes account codes for general ledger activity and
account codes for subsidiary ledger entries with a purpose to accumulate all
financial transactions of LEPARK.
The Accounts and Finance Department shall develop and maintain the Chart of
Accounts of LEPARK. The Department numbers and account numbers in the chart
of account will allow the Accounts and Finance Department to track the revenues
and expenses.
All cheque requisitions, inter-departmental transfers, purchase orders, invoices,
and other accounting paperwork must be properly coded with the proper
Department
number, Account
number, and
Sub-Account
number, so
that
transactions can be properly tracked and communicated.

The account coding system:
Provides uniformity in the coding of accounts throughout LEPARK.
Provides greater capability for generating financial information for

management reports, cost analysis, etc.
Provides a method to meet the record keeping requirements of the funding

& granting agencies as well as to generate more meaningful information for
improved budget and expenditure reporting.
Creates a sound base for LEPARK accounting systems and the development
of an effective program by utilizing electronic data processing equipment.
The account numbers shall appear on all financial reports produced by the
automated accounting system of LEPARK and will also be used on personnel and
payroll forms, procurement requests, purchase orders, travel forms, and other
documents of a financial or budgetary nature affecting LEPARKs accounts. The
account numbers provide a means of interpreting and classifying data into an
abbreviated and condensed format.
5.1
RESPONSIBILITY
The Chief Financial Officer shall be responsible to ensure that the General Ledger
of LEPARK is fiscally maintained. The Chief Financial Officer shall be responsible
to follow up financial concerns relative to cost center management in a timely
manner.
All new codes in the chart of account shall be opened only after the approval of the
CFO. All requests for opening of new accounts may be made in writing giving the
following particulars:
Description of transaction
Head of Account
Proposed code
Any change or amendment in accounting codes shall be made only after the
approval of Chief Financial Officer who ensures that the chart of accounts is
consistent with the coding structure of LEPARK.
All opening of new codes or amendments, once approved by the CFO, shall be
processed in the Automated Accounting Software and an updated chart of account
generated.
LEPARK shall be using automated accounting software to record accounting
transactions. The software shall provide for separate, self-balancing sets of accounts
in accordance with provisions of the Companies Ordinance 1984 and procedures for
LEPARK.
All accounting information shall be organized in LEPARKs financial system by using
the standard Chart of Accounts.
5.2
ELEMENTS OF CHART OF ACCOUNTS
The elements of chart of accounts shall form the basis for the recording, organizing
and reporting of financial information. These elements shall appear on the various
reports and forms generated in the Accounts and Finance Department.
The account code comprises of nine (08) digits divided into four parts or elements:
a.
Main Code (first 2 digit)
b.
Account Code (next 2 digit)
c.
Sub-Account Code (last 4 digits).
The following diagram illustrates the account code structure:

99-99-9999 (a-b-c)
5.2.1 Main Code
Main code shall be a two digit code describing the source of funding for a
transaction.
The following are the main codes and their description that are currently in use:
Main Code
Account Title
LIABILITIES
ASSET
INCOME
EXPENDITURE
5.2.2 Account Code

The account code shall be assigned a one digit code to indicate transactions
affecting assets, liabilities, income & expenditures.
Following are examples of codes to be used to describe an account code:

Account Code
Account Title
11
CAPITAL
12
LONG TERM LIABILITIES
13
CURRENT LIABILITIES
5.2.3 Item Code

The item code shall be assigned a three digit code to indicate transactions
affecting long term liabilities, current liabilities, fixed asset tangible, operational
expenditures etc.
Following are examples of codes to be used to describe object code:
Item Code
Account Title
015
LONG TERM LOANS
020
LEASING
040
DEFERRED LIABILITIES
010
SHORT TERM LOANS
5.2.4 Department Code

The department codes have been assigned to the expenditures only as the assets,
liabilities and revenue are all common to LEPARK.
Following are codes to be used to identify a departmental expenditure:
Department Code
Account Title
41
OPERATIONS
42
HUMAN RESOURCE
43
PROCUREMENT
44
ACCOUNTS AND FINANCE
45
ADMINISTRATION
46
CORPORATE & LEGAL
5.2.5 Sub-Account Code

The sub-account code shall be assigned a four digit code to indicate transactions
affecting accrued expenses, revenues current portion of non-current liabilities,
land, vehicles etc.
Following are examples of codes to be used to describe object code:

Sub-Account Code
Account Title
0003
ELECTRICITY BILL
0001
GAS BILL
0001
MOBILE CHARGES
0002
WATER BILL
For complete list of sub account code please refer to Appendix-1.

5.3
PERFORM CLOSING
The purpose of this process is to define the tasks necessary to support the periodend financial close and consolidation process including the preparation of the
financial statements required for internal management reporting and external
reporting.
5.3.1 Close Schedule
This covers the hard close for all periods.
month.
Closing activity will be completed by the 5th of following

There should be a single overall online calendar and the Accounts and Finance
Department ensures the monthly close.
5.3.2 Reporting at Closing

The opening and closing of the accounting period will be managed centrally to
ensure that no transactions will be posted from subsequent periods into previously
closed periods without proper authorization.
Reconciliations should be prepared to substantiate amounts in the balance sheet
accounts on a monthly basis.
The financial statements and various reports will only be prepared at the corporate
level in head office.
The timelines for preparation of financial statement is as follows:

JOB
DEADLINE
h
Finalization of Head office Trial balance
By 10 day
Preparation of Accounts
By 15 day
5.4
th
PERFORM OPENING NEXT PERIOD/YEAR
The purpose of this process is to define the tasks necessary to support the transfer
of the closing balances to the new period/year.
5.4.1 New Period
This covers the transfer of balances to the next period.
The balances of carious accounts in the Automated Accounting Software shall be
automatically transferred to the next period i.e. each month till the year end
closing.
5.4.2 Next Year
This covers the transfer of balances to the next year.
The net of balances of the expenses and revenues shall be transferred to the
Grants in Aid account. The net balance shall be taken to the Fund account as the
opening balance. All account balances appearing in the assets and liabilities
accounts shall be carried over to the next year, at their book value to form the
opening balances in the respective accounts.
5.5
DISTRIBUTION OF CHART OF ACCOUNTS
All employees of LEPARK who are responsible for coding of accounts, preparation of
vouchers, and data entry in the automated system or have been assigned budget
preparation responsibilities shall be issued a current chart of accounts. An updated
copy of chart of accounts shall be distributed to these individuals as and when it is
revised.
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The following detailed procedures shall be implemented to ensure complete

adoption of Chart of Accounts:
Documented Financial Work Plan that includes all the relevant documents
required for the adoption of chart of accounts shall be completed and
delivered to the Chief Financial Officer on a monthly basis.
Regular data and chart of accounts integrity checks via a compliance

database shall be performed.
Annual review of all transactions occurred during the year shall be

performed.
End year calendar/ of financial budgetary procedures shall be followed.
The institutional procedures regarding appropriate accounting transactions

shall be followed.
6.
ACCOUNTING RECORDS
6.1
ACCOUNTING RECORDS
The maintenance of accounting records is the responsibility of the Accounts and

Finance Department. It has following objectives:
The creation and capturing of authentic and reliable records to demonstrate

evidence of accountability and information about the decisions and
activities carried out.
Secure the maintenance and preservation of access to the accounting

records, as long as they are required to support the operations.
Secure the identification and archiving of accounting records considered

worthy of permanent preservation.
Bringing administrative and financial benefits to LEPARK.
Adherence to all legal obligations.
The Chief Financial Officer (CFO) shall be responsible for overall maintenance of
accounting records and shall be accountable to the Managing Director. The
accounting records and supporting documents shall be maintained in compliance
with the provisions of Companies Ordinance 1984.
6.1.2 Procedure
6.1.3 Proper Book Keeping

Accounts and Finance Department shall properly retain active financial records
which are required to ensure the completeness and accuracy of required
information in proper way for easy access and retrieval of accounting records.
6.1.4 Prevention of Unauthorized Access

LEPARK has installed an Automated Accounting Software as an automated ledger
account maintenance systems that provide up-to-the minute balances in all ledger
accounts whenever data relating to a completed transaction is entered. Access to
the Accounting Software and data shall be controlled by issuing user password to
authorized personnel of the Accounts and Finance Department to prevent
unauthorized alterations to financial data. Cross-referencing and indexing of ledger
accounts, transactions, and control records has been provided in the system to
ensure a high degree of resistance to unauthorized alteration of the data files and
to provide for traceability of all entries and postings.
6.1.5 Disaster Recovery and Planning

The following shall be a list of the most common strategies adopted by LEPARK for
data protection.
Backups shall be made on Compact Discs and sent off-site at regular

intervals.
Replication of data to an off-site location, which overcomes the need to

restore the data.
6.1.6 Retention Period

The retaining period of vouchers and supporting documents shall be ten years while
ledgers, audited accounts and their supporting financial records shall be retained
permanently for all accounts.
6.1.7 Disposition
The purpose of disposal or destruction is to permanently remove unnecessary
records from active use. The destruction of such records is executed to avoid the
possibility that information could be reconstructed to have an unfair advantage. All
the unnecessary records shall be disposed off after the retention period has expired.
The following steps shall be involved in disposal of records:
Identify the records specifically, their location and content. For example,
correspondence files, financial records, etc.
Examine the records - this may involve reading or scanning the contents of a
file or a sample of forms to determine what the record or file is all about.
The file title is not always an accurate reflection of a files contents as it
may have changed over time or may contain papers on a variety of
unrelated subjects.
Ensure that the records have been properly checked to make it certain that
only those records are disposed off that are no longer required or are
considered to be inactive.
Write the disposal date on the outside front cover of files and folders. For
example, RP for Retain Permanently or DE2015, for Destroy end of 2015.
Create an itemized list of all records for proposed destruction. This list
should be forwarded to CFO for approval. A copy should be kept in Accounts
and Finance Department as record.
When the disposal date for records is reached, appropriate arrangements for their
destruction must be made. Records containing any personal details about
individuals, information given in confidence or considered commercial, legal or
financial in confidence should be shredded or placed into confidential waste bins.
Routine records can be destroyed using usual methods of recycling or waste
disposal.
7.
ACCOUNTING FOR ASSETS

7.1
TANGIBLE AND INTANGIBLE ASSETS
LEPARK shall have fixed asset accounting procedures to ensure:
All fixed assets are recorded in the books of LEPARK.
All fixed assets are valued correctly.
Depreciation is charged correctly as per LEPARK policy on all fixed assets.
All fixed assets are insured against all known risks.
All fixed assets are legally and physically in the possession of LEPARK.
I.
The following chart depicts the flow of capital expenditure. Purpose of this
policy is to ensure that capital expenditure by LEPARK is planned, evaluated,
authorized, implemented, monitored, reported and recorded in a systematic
manner to meet the objectives of best practices.
II.
This Policy on fixed assets has been designed to ensure proper accountability
and recording of LEPARK fixed assets, their acquisition and capitalization in
accordance with provisions of Companies Ordinance 1984 and applicable IAS
in Pakistan.
The tangible fixed assets acquired, capitalized or being used by LEPARK may
include the following categories of assets:
Land
Building
Equipment
Computers
Furniture & Fixtures
Vehicles
The intangible fixed assets acquired, capitalized or being used by LEPARK may
include:
Computer software
Intellectual
Property
- Where LEPARK provides funding, background
information, parking ticket samples, or confidential proprietary data for a

project.
a.
The Chief Financial Officer shall have the overall responsibility for the
establishment of effective internal controls for the recording, safe guarding
and proper management of fixed assets.
b.
The Chief Financial Officer shall implement, monitor and maintain controls
over the recording of fixed assets to ensure:
c.
Accuracy of the records
Safeguarding of assets
Improper disposal is avoided
The Senior Manager Finance shall be responsible for proper accounting,

recording and capitalization of fixed assets. Senior Manager Finance is
accountable to the Chief Financial Officer.
d.
The Manager Administration shall be responsible for proper physical

management of fixed assets.
7.1.2 Procedures
The Chief Financial Officer shall prepare, update and monitor procedures for the
effective and accurate accounting and recording of fixed assets and its
implementation shall be ensured by the responsible officials. The following
procedures are made part of this manual:
1.
There shall be a fixed assets accounting, recording and management system

for LEPARK.
2.
At the start of the financial year, the Chief Financial Officer with the
coordination, supervision and coordination of Managing Director shall prepare
a capital expenditure budget for LEPARK. The Board of Directors shall approve
the budget.
3.
There shall be common policies and procedures for acquisition and

capitalization of fixed assets of LEPARK including standard useful life,
depreciation methods, amortization, impairment losses, etc.
4.
All fixed assets accounting and recording of transactions shall be automated to

minimize manual journal entries and to support the overall monthly closing.
5.
Fixed assets ledgers shall be integrated with financial accounting for summary
level acquisition, depreciation, amortization, improvements and disposal data.
6.
Periodic reconciliation of the underlying record of fixed assets with the

accounting records (general ledger) shall be made at regular intervals.
7.
Periodic reconciliation of physical inventory of fixed assets with the fixed

assets records shall be made properly in a timely manner.
8.
Owned fixed assets including all acquisitions- past, present and future- shall
be recorded at an amount equal to the cost or at its fair value, which ever in
lower.
9.
Depreciation, amortization and impairment losses shall be calculated in

accordance with the approved depreciation, amortization and impairment
methods and rates applicable to the fixed assets (IAS-16 & 36)
10.
Normal repairs and maintenance shall be charged to expenses, as and when

incurred. Major renewals and improvements shall be capitalized as per the
capitalization policy.
7.1.2.1
I.
Fixed Assets acquisition and capitalization
It is the policy of LEPARK that the cost of an item of fixed and tangible asset
shall be recognized as an asset if:
it is probable that future economic benefits associated with the item will
flow to the entity.
II.
the cost of the item can be measured reliably.
An asset shall be classified as a fixed asset and required to be recorded in the

fixed asset register when it meets all of the following additional criteria:
The asset has an estimated useful life of greater than 1 year.
The asset has not been purchased with the intention of resale or donating
for charitable purposes.
III.
Expenditure may be capitalized if it is expenditure on an existing asset and

the expenditure was incurred to improve the assets functionality, not merely
to reinstate its future economic benefits (e.g. repairs and maintenance).
IV.
Spare parts may be capitalized where they meet the capitalization threshold
and they are expected to be used over more than one year.
V.
Once it has been established that an asset meets the criteria for recognition,
it shall be recorded in the fixed assets register at cost price (or cash price
equivalent if purchased using deferred payment and/or foreign currency).
7.1.2.1.1 Recording of Fixed Assets on Acquisition

1)
Fixed assets shall be recorded at cost initially on acquisition. Cost includes all
costs necessary to bring the asset to working condition for its intended use
which includes the following costs:
Purchase price, including import duties and non refundable purchase

taxes, after deducting trade discounts and rebates.
Any costs directly attributable to bringing the asset to the location and
condition necessary for it to be capable of operating in the manner
intended by LEPARK management.
Examples of directly attributable costs are:
Costs of site preparation.
Initial delivery and handling costs.
Installation and handling costs.
Costs of testing whether the asset is functioning properly.
Professional fees.
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2)
Costs of day-to-day servicing of the fixed assets are not recognized in its
carrying amount or fair value. These costs are expensed out as incurred. Costs
of day-to-day servicing are primarily the costs of labour and consumables, and
may include the cost of small parts. The purpose of these expenditures is the
repair and maintenance of fixed assets.
3)
The cost of a fixed asset is the cash price equivalent at the recognition date.
If payment is deferred beyond normal credit terms, the difference between
the cash price equivalent and the total payment shall be recognized as
interest over the period of credit.
7.1.2.1.2 Trade in of Fixed Assets
I.
If fixed assets are acquired in exchange for a non-monetary asset or assets, or

a combination of monetary and non-monetary assets, the cost of such an
asset shall be measured at fair value unless:
(a)
The exchange transaction lacks commercial substance or
(b)
The fair value of neither the asset received nor the asset given up is
reliably measurable.
II.
The acquired asset shall be measured in this way even if the asset given is not
derecognized immediately. If the acquired asset is not measured at fair
value, its cost shall be measured at the carrying amount of the asset given up
plus/minus any cash given/received.
7.1.2.1.3 Measuring the fixed asset after acquisition

After recognition as an asset, the fixed asset shall be recognized at cost less any
accumulated depreciation and any accumulated impairment losses.
7.1.2.1.4 Capitalization of expenditure
All tangible fixed assets having estimated useful life of at least one year or more
shall be capitalized and shall include but not limited to:
1.
Land
2.
Buildings
3.
Machinery/Equipment
4.
Computers
5.
Furniture & fixture
6.
Vehicles
7.
Office Equipment and Electric Equipment
The administration department shall maintain close coordination with the Accounts
and Finance Department to ensure that information regarding the fixed assets,
their additions and their disposals are timely transmitted to the accounting and
finance department for proper accounting and updating of fixed assets records.
7.1.2.1.5 Land
a)
The land acquired by LEPARK through outright purchase, transfer or

donation shall be capitalized at cost or fair value depending upon mode of
acquisition. The cost of land shall include all costs connected with acquisition
or its fair value and costs incurred to prepare the land for its intended
purpose.
b)
Costs to be capitalized shall include:
The purchase price of land or its fair value, which ever in lower.
Additional professional costs such as legal, registration and title fees,

surveying fees, appraisal fees, real estate commissions, escrow fees, and
damage payments.
Payment of non-refundable taxes accrued on the land at the date of

purchase if payable by the purchaser.
Expenditures for demolishing any buildings which were acquired with the
land to make the land available for new construction or other use. Any
salvage values resulting from the sale of building material and related
building facilities shall be credited to land cost.
The cost of perpetual easements or rights of way.
Fees for surveys, title searches, geological testing, legal, and other expert
services incidental to the acquisition of land.
c)
d)
The following costs shall not be capitalized:
Expenditures relating to the disposal.
Fees for surveys, title searches, etc., applicable to land which was not
acquired.
The cost of easements or rights of way which are limited as to time.
All acquisition of land shall be accounted and recorded in a new account code
generated in chart of accounts.
Accounting Entries:
i.
When land is acquired on credit:
Entry 1
Account Title
G/Ledger code
Dr. Land
Relevantcode
Cr. Account payable
Relevant code
Entry 2
Account Title
Dr. Account Payable
Cr. Cash / Bank
G/Ledger code
Relevant code
Relevant code
For more details of account codes please see Appendix-1.

7.1.2.1.6 Buildings
a)
Buildings that are permanent in nature and have a useful life of greater than
one year shall be capitalized if their cost of construction or acquisition
exceeds Rs. 200,000. Where the cost of construction or acquisition is below
Rs. 200,000 or expected life of the asset is less than one year, the costs shall
be expensed.
b)
Buildings shall be charged with the initial cost of basic building structures
including building foundations, outside walls (or siding), sub-flooring, rough
ceilings, interior walls of a
load-bearing character, roofs (excluding
coverings), elevator shafts, stairs and railings, and other such integral or
structural components.
c)
Other costs to be capitalized as part of a building shall include:
Cost of building permits.
Architectural,
engineering,
drafting,
and
other
expert
services
attributable to the construction of the building.
Extraordinary costs which are inherent construction risk, such as rock

blasting, piling, or relocation of the channel of an underground stream.
Interest paid to an external entity on funds used to finance construction

during the construction period.
d)
Insurance premiums connected with acquisition.
The following costs shall not be capitalized:
Extraordinary costs incidental to the erection of a building, such as those

due to strike, flood, fire or other calamity.
Cost of incomplete construction that is subsequently abandoned, including

the cost of demolition of such partially completed construction and
related clean up costs.
e)
When building is under construction, all expenses incidental to the

construction of building shall be debited to account code Capital Work in
Progress given in the chart of accounts. All buildings acquired shall be debited
to the relevant building account code. Construction costs after completion of
Buildings shall be transferred from Capital Work in Progress account and their
costs shall be debited to the relevant Building account code.
7.1.2.1.7 Machinery/ Equipments
a)
The cost of Machinery/Equipment shall be capitalized if its cost exceeds Rs.

50,000 and all criteria
mentioned in Fixed
Assets Acquisition and
Capitalization is fulfilled.
b)
c)
Original contract or invoice price
Freight charges
Professional services
Import duties
Handling and storage charges
In-transit insurance charges
Sales, use, and other non-refundable taxes imposed on the acquisition
Installation charges
Charges for testing and preparation for use
Costs of reconditioning used items when purchased
Parts and labor associated with the construction / installation of equipment
All repairs & minor improvements on owned machinery and equipment will be
debited to expense account.

7.1.2.1.8 Computers
i.
All costs incidental to the acquisition of computers and its peripherals

exceeding Rs. 10,000 shall be capitalized.
Accounting Entries:
1.
When Computers are acquired on credit:
Entry 1
Account Title
G/Ledger code
Dr. Computers
Relevant code
Cr. Account payable
Relevant code
Entry 2
Account Title
G/Ledger code
Dr. Account Payable
Relevant code
Cr. Cash / Bank
Relevant code
2.
Account Title
G/Ledger code
Dr. Computers
Relevant code
Cr. Cash / Bank
Relevant code
3.
ii.
When Computers are acquired on cash:
When Computers are acquired through fund:
Account Title
G/Ledger code
Dr. Computers
Relevant code
Cr. Fixed Asset Fund
Relevant code
Hard disks, tape drives, CDs, fax modems, RAMs and other such items when
purchased independently are not to be capitalized and shall be charged to
expense account.
iii.
Furthermore, if any part of the computer is replaced, it will not be

capitalized but charged to the expense account.
iv.
All repairs & minor improvements on owned computers shall be expensed out.
7.1.2.1.9 Furniture and Fixtures

i.
Furniture costing above Rs. 10,000 shall be capitalized and items costing
equal to or less than Rs. 10,000 shall be expensed out.
ii.
All costs of fixtures including blinds, carpeting etc shall also be capitalized if
the fixtures are above Rs. 20,000 and items costing equal to or less than Rs.
20,000 shall be expensed out.
Accounting Entries:
1.
When furniture & fixtures are acquired on credit:
Entry 1
Account Title
G/Ledger code
Dr. Furniture & Fixture
Relevant code
Cr. Account payable
Relevant code
Entry 2
iii.
Account Title
G/Ledger code
Dr. Account Payable
Relevant code
Cr. Cash / Bank
Relevant code
All repairs & minor improvements on owned furniture & fixtures shall be
expensed out.
7.1.2.1.10
i.
Vehicles
All vehicles costs exceeding Rs. 20,000 shall be capitalized. These may
include motorcycles, bicycles etc.
ii.
The costs incidental to the acquisition of vehicles shall include:
Purchase price
Transportation
iii.
Registration Charges
Non-refundable taxes & duties
All repairs & minor improvements on vehicles shall also be expensed out.

7.1.2.1.11
a)
Office& Electric Equipment
The cost of Office & Electric Equipment shall be capitalized if its cost exceeds
Rs. 10,000
and
criteria
mentioned in
Fixed
Assets
Acquisition and
Capitalization is fulfilled.
b)
Original contract or invoice price
Freight charges
Import duties
Handling and storage charges
In-transit insurance charges
Sales, use, and other non-refundable taxes imposed on the acquisition
Installation charges
Charges for testing and preparation for use
Costs of reconditioning used items when purchased
Parts and labor associated with the construction / installation
of
equipment.
c)
However calculators, heaters, telephone sets, UPS batteries and other such
items shall not be capitalized. These items will be charged to expense
account (Office Supplies).
d)
All repairs & minor improvements on owned office &electric equipment will
be debited to expense account.
7.1.2.1.12
Donated Assets
Donations of all assets shall be reported to the Accounts and Finance Department
who will maintain donor records so that there are complete and accurate
cumulative histories of such assets. Donations when received shall be recorded at
their fair market values. Fair value equals the amount at which an asset could be
exchanged in a current transaction between knowledgeable willing parties.
7.1.2.1.13
General Criteria for Repairs / Improvements capitalization
If the cost of repairs / improvements is substantial, it shall be capitalized or

expensed as given below:
No.
Name of
Asset
Land
Repair(R) /
Improvement
(I)
Amount
Not applicable to land
Not applicable to land
Without any
limit
Expense out in the year

during which it occurs.
200,000 &
above
Capitalize
Without any
limit

Not applicable
Without any
limit

50,000 &
above
Capitalize
Without any
limit

10,000 &
above
Capitalize
Without any
limit

Not Applicable
Building
Furniture/Fi
xture
Machinery/
Equipment
Computers
Vehicles
Rs.
Treatment
No.
Name of
Asset
Office
&Electric
Equipment
7.1.2.2
i.
Repair(R) /
Improvement
(I)
Amount
Treatment
Rs.
Without any
limit

10,000 &
above
Capitalize
Fixed Assets Register
LEPARK shall maintain a central record of fixed assets in the Accounts and
Finance Department. This central record of fixed assets shall be referred to
as the Fixed Assets Register which shall list down the following details:
ii.
Description of the asset
Location of the asset
Cost
Current depreciated amount
Depreciation written off to date
Estimated useful life of asset
Assets residual value
Mode of acquisition purchase, lease or donation
Date of acquisition
Any addition or deletion in the fixed assets register shall be made after
approval of the Chief Financial Officer.
iii.
A record of fixed assets and their values shall be kept in order to:
Provide information to LEPARK management about the assets under its

use & control.
Provide information for management decision-making purposes.
Provide information for external reporting purposes.
Page 6 0
Enable LEPARK to calculate annual depreciation and losses/gains on the

sale of assets.
iv.
The Accounts and Finance Department shall maintain the fixed assets
register as inventory record. The Manager Accounts shall be responsible to
ensure that fixed assets register of LEPARK is properly maintained and
updated.
v.
The administration department will also maintain a fixed asset record to

control the location wise assets. Separate fixed assets memorandum records
will also be maintained at different locations like workshops, stores etc so
that at any time the information regarding the asset can be verified during
physical verification and cross referred with the main Fixed Assets Register
maintained by the Accounts and Finance Department.
7.1.2.2.1 Contents of Fixed Assets Register

i.
The Accounts and Finance Department shall maintain fixed assets register in
a format approved by the Chief Financial Officer and the format shall
comply with the requirements of the provisions of Companies Ordinance
1984.
ii.
The information and details of fixed assets that the fixed assets register
shall contain, include the following:
A brief but meaningful description of each asset
The date on which the asset was acquired or brought into use
The location of the asset
The title deed number, in the case of fixed property
The stand number, in the case of fixed property
Where applicable, the identification number, model number
The original cost, or the revalued amount or the fair value if no costs
are available
The (last) revaluation date of the fixed assets subject to revaluation
Who did the (last) revaluation
Accumulated depreciation to date
The depreciation charge for the current financial year
The carrying value of the asset
The method and rate of depreciation
Impairment losses incurred during the financial year (and the reversal
of such losses, where applicable)
The source of financing
The current insurance arrangements
What kind of services are being performed by the asset
Whether the asset has been used to secure any debt, and if so the
nature and duration of such security arrangements the date on which
the asset is disposed off
The disposal price
The date on which the asset is retired from use, if not disposed off.
7.1.2.2.2 Recording of Fixed Assets in Register
i.
All heads of departments under whose control any fixed asset falls shall
promptly inform the Chief Financial Officer and Manager Administration
about the change or acquisition of fixed asset and the Manager
Administration shall provide the Chief Financial Officer in writing with any
information required to compile the fixed asset register, and shall promptly
advise the Chief Financial Officer in writing of any material change which
may occur in respect of such information.
ii.
A fixed asset shall be capitalized, that is, recorded in the fixed assets
register, as soon as it is acquired. If the asset is constructed over a period
of time, it shall be recorded as work-in-progress until it is available for use,
where after it shall be appropriately capitalized as a fixed asset.
iii.
A fixed asset shall remain in the fixed assets register for as long as it is in
physical existence. The fact that a fixed asset has been fully depreciated
shall not in itself be a reason for writing-off such an asset.
iv.
If leased assets are obtained by LEPARK only assets which are subject to
a Finance Lease are entered into the Assets Register. Assets which are
subject to operating leases are not entered into the Assets Register. The
leased assets should be recorded separately of owned assets of LEPARK.
v.
Assets received as a donation shall also be recorded in the Fixed Assets

register at the time, the asset is received.
vi.
In case of part payments for assets purchased these assets for which
deposits have been paid shall not be recorded in assets register until full
payment has been made and the asset is installed and ready for use.
vii.
In case of any heritage assets for which no original costs or fair values are
available and it is believed that the determination of a fair value for the
assets in question will be a laborious or expensive undertaking, such asset
or assets shall be recorded in the fixed assets register without an indication
of the costs or fair values concerned.
7.1.2.2.3 Updating the Fixed Asset Register
i.
The Manager Accounts shall be responsible for maintaining and updating the
fixed assets register.
ii.
All changes in the particulars, composition or class of any fixed asset shall
be communicated to the Manager Accounts by the Manager Administration
in writing.
iii.
The Manager Accounts shall incorporate these changes in the fixed assets
register as and when these are communicated by the Manager Administration.
iv.
The Manager Accounts shall keep the fixed assets register in custody and
nobody except the Senior Manager Finance shall be allowed with the
approval of the Chief Financial Officer and Managing Director to make
changes in the register.
v.
Physical count of fixed assets shall be carried out on a regular basis and the
physical inventory shall be reconciled with the fixed assets register and
adjusted accordingly.
7.1.2.2.4 Safe keeping of assets

i.
Every head of department shall be directly responsible for the physical

safekeeping of any fixed asset controlled or used by the respective
department.
ii.
In exercising this responsibility, every head of department shall adhere to

any written directives issued by the Manager Administration to the
department in question, or generally to all departments, in regard to the
control of or safekeeping of the fixed assets.
7.1.2.2.5 Identification of Fixed Assets

i.
The Manager Administration shall design, develop and implement a fixed

assets identification system in consultation with the Chief Financial Officer
and the heads of departments.
ii.
The Chief Financial Officer shall ensure that the fixed asset identification
system that has been implemented complies with the requirements of the
computerized / manual fixed asset register.
iii.
The fixed assets identification system shall comply with any legal
requirements, as well as any recommendations of the internal / external
auditors and shall be decided upon within the context of the budgetary and
human resources.
iv.
Every head of department shall ensure that the asset identification system
is scrupulously applied in respect of all fixed assets controlled or used by
the relevant departments.
7.1.2.2.6 Effect of Errors or Inaccurate Changes in Register
i.
The Manager Accounts shall be responsible for accurate recording of assets

in the fixed assets register and any change therein.
ii.
Inaccurate addition or changes to the fixed asset register may result in the
following errors:
An invalid fixed asset description may cause an incorrect classification

of assets, resulting in incorrect calculations in depreciation.
An invalid fixed asset location may result in the fixed asset being lost
or misplaced.
An incorrect purchase price or an invalid date of acquisition may result

in an incorrect calculation or recording of depreciation.
An invalid depreciation rate may result in an incorrect calculation of

depreciation.
iii.
Fixed assets register will be rectified by the Manager Accounts only and he
will be responsible for all errors in the register.
7.1.2.3
i.
Leased Assets
LEPARK shall acquire assets or any property on lease only for purposes
that contribute to its mission of public service.
ii.
All departments & officials shall be responsible for overseeing the proper
use of leased property assigned to them.
iii.
The Managing Director shall form a Leased Assets Committee to oversee the
selection, approval and administration of lease. The Leased Assets
Committee shall be accountable to the Managing Director and LEPARK Board.
iv.
The following at least shall be the members of the Leased Assets

Committee:
The Chief Financial Officer
v.
The GM Operations
The GM Revenue
The GM HR & Admin
The Managing Director shall be the signing authority for all lease
agreements and related documentation.
vi.
A written lease or license or other appropriate agreement shall be entered

into regardless of duration of use or amount of lease rental to be paid. The
lease shall be recorded in accordance with the provisions of Companies
Ordinance 1984.
vii.
The Senior Manager Finance shall be responsible for proper accounting and
recording of leased assets. (IAS-17)
7.1.2.3.1 Approval of Lease

i.
The Leased Assets Committee shall evaluate the proposal prepared by the
Chief Financial Officer to lease or buy an asset.
ii.
The Committee shall take into consideration the following criteria to

identify the type of lease that is most appropriate:
iii.
Technical and operational useful life of the leased assets.
Likelihood of continued use beyond the lease term.
Budgeting issues.
Financing terms (term of lease, cost of borrowing).
Type of lease (Operating vs. Finance) and its financial impact.
Once the proposal is evaluated by the Leased Assets Committee it shall be

presented to the Board of Directors for approval.
iv.
The
Chief
Financial
Officer
and
GMs
shall
complete
the
documentation of lease and negotiations with the financial institution on

behalf of LEPARK.
7.1.2.3.2 Initial Recognition of Finance Leases
i.
A lease is classified as a finance lease if it transfers substantially all the

risks and rewards incidental to ownership and a lease is classified as an
operating lease if it does not transfer substantially all the risks and rewards
incidental to ownership.
ii.
Whether a lease is a finance lease or an operating lease shall depend on the

substance of the transaction rather than the form of the contract. Following
are the situations that individually or in combination would normally lead to
a lease being classified as a finance lease:
The lease transfers ownership of the asset to LEPARK by the end of the
lease term;
LEPARK
has the option to purchase the asset at a price that is
expected to be sufficiently lower than the fair value at the date the
option becomes exercisable and for it to be reasonably certain, at the
inception of the lease, that the option will be exercised;
The lease term is for the major part of the economic life of the asset
even if title is not transferred;
At the inception of the lease the present value of the minimum lease
payments amounts to at least substantially all of the fair value of the
leased asset; and
The leased assets are of such a specialized nature that only LEPARK can
use them without major modifications.
iii.
The finance lease shall be recorded as an asset and a liability in the books
of accounts at cost and principal liability of the leased asset. Any initial
direct costs incurred by LEPARK are added to the amount recognized as an
asset.
Accounting Entries:
1.
When leased asset is acquired:
Account Title
G/Ledger code
Dr. Leased Asset
Relevant code
Cr. Leased Liability
Relevant code
When payment is made to the lessor:

Account Title
G/Ledger code
Dr. Leased Liability
Relevant code
Dr. Finance Charge
Relevant code
Cr. Cash / Bank
Relevant code
7.1.2.3.3 Subsequent Measurement of Finance Leases

i.
Minimum lease payments made to the financial institution shall be

apportioned between the finance charge and the reduction of the
outstanding principal liability in accordance with the lease payment
schedule. The finance charge shall be allocated to each period during the
lease term so as to produce a constant periodic rate of mark-up on the
remaining balance of the liability. Contingent rent is charged as expense in
the period in which it is incurred.
ii.
A finance lease gives rise to depreciation expense for depreciable assets as

well as finance expense for each accounting period. The depreciation policy
for depreciable leased assets shall be consistent with that of depreciable
assets that are owned. If there is no reasonable certainty that the
ownership of the leased asset will be transferred to LEPARK at the end of
the lease term, the asset should be fully depreciated over the shorter of
the lease term and its useful life.
7.1.2.3.4 Operating Leases
i.
Lease payments under an operating lease shall be recorded as an expense

on a straight-line basis over the lease term or any other systematic basis if
it is more representative of the time pattern of the benefits.
ii.
The operating leases shall not be recorded as an asset in the books of

accounts like the finance leases.
Accounting Entries:
When lease rental is paid to the lessor:
Account Title
G/Ledger code
Dr. Lease Rental
Relevant code
Cr. Cash/Bank
Relevant code
7.1.2.3.5 Lease Vs Buy Analysis

The Senior Manager Finance shall prepare a lease versus buy analysis and submit
for evaluation to the Leased Assets Committee to be nominated by the
management, for evaluation. All costs associated with the lease arrangement shall
be taken into consideration when preparing this analysis. The decision to enter into
either a finance lease or an operating lease must be based on a detailed net
present value and cost/benefit analysis or on the basis of equivalent annual cost/
benefit analysis if lease term is different.
7.1.2.3.6 Lease amendment procedure
i.
Existing leases can be amended only with the approval of Leased Assets
Committee and only if:
New arrangement demonstrates an economically feasible program to

LEPARK over the remaining term of the lease;
There is a change in the asset specification or a new asset has been

added to the assets already under lease arrangement.
7.1.2.3.7 Depreciation of fixed assets
i.
All fixed assets of LEPARK shall be depreciated on reducing balance method

over their estimated useful life at the rates given in the following
paragraphs to reflect their accurate net asset value.
ii.
Fixed assets shall be depreciated over their estimated useful lives unless
they are inexhaustible. Depreciation on additions to operating fixed assets
shall be charged from the month in which the asset is acquired or
capitalized, while no depreciation shall be charged from the month in which
the asset is disposed off.
iii.
The Senior Manager Finance shall be responsible for proper calculation,

accounting and recording of depreciation.
7.1.2.3.8 Depreciation Amount and Depreciation Method
i.
The depreciable amount of an asset is allocated on a systematic basis over

its useful life and is depreciated using straight line method (other than
leasehold improvements and rickshaws in use of contractors.).
ii.
The depreciation expense for each period shall be charged to income unless
it is included in the carrying amount of another asset. Sometimes, the
future economic benefits embodied in an asset are absorbed in producing
other assets. In this case, the depreciation charge constitutes part of the
cost of the other asset and is included in its carrying amount.
iii.
Each part of fixed asset with a cost that is significant in relation to the total
cost of the fixed asset shall be depreciated separately.
iv.
The residual value and the useful life of an asset shall be reviewed at each
financial year-end and, if expectations differ from previous estimates, the
change shall be incorporated in the fixed assets register.
v.
Depreciation of an asset shall begin when it is available for use, i.e., when
it is in the location and condition necessary for it to be capable of operating
in the manner intended by LEPARK management.
vi.
Depreciation of an asset shall cease when the asset is derecognized i.e.

disposed
of,
destroyed,
scraped
or
become
obsolete.
Therefore,
depreciation does not cease when the asset becomes idle or is retired from
active use and held for disposal unless the asset is fully depreciated.
Page 7 0
7.1.2.3.9 Factors to be considered in determining useful life of an asset:
i.
Expected usage of the asset. Usage shall be assessed by reference to the

asset's expected capacity or physical output or that is provided in suppliers
manual.
ii.
Expected physical wear and tear, which will depend on operational factors
such as the number of shifts for which the asset is to be used and the repair
and maintenance program, and the care and maintenance of the asset while
idle.
iii.
Technical
or
commercial
obsolescence
arising
from
changes
or
improvements in production, or from a change in the market demand for

the product or service output of the asset.
iv.
Legal or similar limits on the use of the asset, such as the expiry dates of
related leases.
v.
Land and buildings are separable assets and shall be accounted for
separately. Land has an unlimited useful life and therefore shall not be
depreciated while buildings have a limited useful life and therefore are
depreciable assets.
7.1.2.3.10
Depreciation rates
Following depreciation rates shall be used by LEPARK to depreciate its fixed assets: Name
of fixed asset
Depreciation rate
Building
10%
Portable fiber glass offices
15%
Machinery/Equipments
15%
Computers
30%
Furniture and fixtures
15%
Vehicles (other than rickshaws)
15%
Rickshaws
33.33%
Office &Electric Equipment
15%
7.1.2.3.11
Depreciation Entries
Name of Item
G/L Code
Dr/Cr
Buildings
Relevant code
Dr.
Depreciation
Furniture
Relevant code
Dr.
Depreciation
Computers
Relevant code
Dr.
Depreciation
Machinery/Equipment
Relevant code
Dr.
Depreciation
Vehicles
Relevant code
Dr.
Depreciation
Office &Electric
Equipment
Relevant code
Dr.
Depreciation
Buildings
Relevant code
Cr.
Accumulated DepreciationBuilding
Furniture
Relevant code
Cr.
Accumulated DepreciationFurniture
Machinery /Equipment
Relevant code
Cr.
Accumulated DepreciationMachinery /Equipment
Computers
Relevant code
Cr.
Accumulated DepreciationComputers
Vehicles
Relevant code
Cr.
Accumulated DepreciationVehicles
Office &Electric
Equipment
7.1.2.3.12
i.
Title of Account
Accumulated DepreciationOffice &Electric Equipment
Impairment of Assets (IAS-36)
It is the policy of LEPARK to assess annually, as to whether there is any

indication that an asset (or a class of assets) is impaired. If any such
indication exists, the Senior Manager Finance shall estimate the recoverable
amount of the asset in line with the provisions of Companies Ordinance
1984. An asset is impaired when its carrying amount exceeds its recoverable
amount.
ii.
The Senior Manager Finance shall document and record the impairment of
assets in the fixed assets register and its documentation shall be made
available, for review by the external auditors of LEPARK for inclusion in the
annual financial statements.
7.1.2.3.13
i.
Impairment indicators
At the end of each year the Senior Manager Finance shall make assessment to
identify appropriate impairment indicators for each class of asset.
These
impairment indicators will then be used to determine if there is an

indication of impairment. There are usually two groups of indicators which
may be external or internal. External indicators are:
A significant decline in an assets market value as a result of the

passage of time or normal use.
Significant changes with an adverse effect in the technological,

market, economic or legal environment of the relevant asset.
An increase in market interest rates or other market rates of return on

investments that are likely to increase the discount rate included in
the cash flow calculation when determining value in use.
ii.
Internal indicators are:
Evidence of obsolescence or physical damage to an asset.
Significant changes regarding the way an asset is used or is expected

to be used.
Evidence from internal reporting that indicates that the economic

performance of an asset is, or will be, worse than expected.
7.1.2.3.14
Assessment of Impairment
At the end of every financial year the Senior Manager Finance in consultation with
Chief Financial Officer shall determine whether there is any known evidence that an
asset or group of assets is impaired based on the impairment indicators. It is not
expected that each asset would be examined every year to determine if there is an
indication of impairment. For example, The Senior Manager Finance will not need to
assess each building but where it is evident that the building was affected by fire
during the financial year then that building would need to be tested for impairment.
An indicator is only relevant if the recoverable amount of the asset or group of

assets is sensitive to the indicator indicating impairment. If there is no evidence of
impairment there is no need to make a formal estimate of recoverable amount.
7.1.2.3.15
i.
Measuring Recoverable Amount
Where there will be an indication of impairment, the Senior Manager

Finance shall determine the recoverable amount. However, the concept of
materiality applies in identifying whether the recoverable amount needs to
be estimated. For example, if previous calculations show that an assets
recoverable amount is significantly greater than its carrying amount; there
is no need to re-estimate the assets recoverable amount if no events have
occurred that would eliminate that difference.
ii.
Recoverable amount shall be the higher of an assets or cash-generating

units fair value less costs to sell and its value in use.
7.1.2.3.16
i.
Recognizing and Measuring Impairment Losses
Individual Asset
An impairment loss for an individual asset shall be recorded when the
recoverable amount is less than the carrying amount. The amount of the
impairment loss is the difference between the recoverable amount and the
carrying amount.
ii.
Cash-Generating Unit (CGU)

An impairment loss shall be recorded for a CGU when the recoverable
amount of the unit is less than the units combined carrying amount, the
difference between the two being the amount of the impairment loss. The
Senior Manager Finance will need to reduce the carrying amount of each
asset in a CGU on a pro rata basis, based on the carrying amount of each
asset in the unit. However assets in the unit cannot be reduced below the
higher of the assets fair value less cost to sell (where determinable), value
in use (where determinable) or zero.
7.1.2.3.17
i.
Accounting Treatment of an Impairment Loss
An impairment loss for an individual asset and for each asset in a CGU shall
be recorded in the fixed assets register in the year in which the loss occurs.
ii.
After the recording of the impairment loss the Senior Manager Finance must
also adjust the depreciation relating to the asset, by reallocating the new
carrying amount in a systematic manner over the remaining useful life of
the asset.
Journal Entry:
When asset will be impaired:
Account Title
G/Ledger code
Dr. Impairment loss
Relevant code
Cr. Accumulated Impairment loss
Relevant code
7.1.2.3.18
i.
Reversing an Impairment Loss
At the end of every reporting period, the Senior Manager Finance shall
assess whether impairment losses previously recorded need to be reversed.
The Senior Manager Finance will first determine the indicators to be used in
assessing whether a reversal of impairment has occurred. There are a
number of indicators that should be used when determining whether a
reversal of an impairment loss is required. These indicators are similar to
the impairment indicators mentioned above.
ii.
The Senior Manager Finance shall consider whether there is an indication of

a reversal of an impairment loss by using the indicators. Where these
indicators will provide evidence that a reversal has occurred, an estimate of
the recoverable amount will be made. Where it will be determined that the
recoverable amount has increased, the impairment loss need to be
reversed. However, reversal of an impairment loss will not be allowed when
the change in recoverable amount merely will result from the unwinding of
the cash flow discounting due to the passage of time.
a.
Individual Asset
i.
A reversal of an impairment loss for an individual asset cannot

exceed the amount at which that asset would have been recorded
had the asset not been initially impaired and written down.
ii.
After the reversal of an impairment loss, the Senior Manager Finance

will also adjust the depreciation relating to the asset by reallocating
the new carrying amount in a systematic manner over the remaining
useful life of the asset.
b.
Cash-Generating Unit (CGU)
i.
The reversal of an impairment loss relating to a CGU shall be

allocated to each individual asset on a pro rata basis, based on the
carrying amounts of those assets.
ii.
The amount allocated to each asset cannot be increased above the

lower of:
The carrying amount had no impairment loss been recognized

in the prior period; and
7.1.2.3.19
Its recoverable amount (if determinable).
Accounting Treatment of a Reversal of Impairment Loss
A reversal of an impairment loss for an individual asset and for each asset in a CGU
shall be recorded in the fixed assets register in the year in which the reversal occurs.
7.1.2.4
Insurance
Insurance
LEPARK
Policy
Maximize
Benefits
Effective
Safeguards
Minimize
Cost
Considering
Best Interest
LEPARK
Board
Underwriting
Damage
Minimize
Exposure
Protects
Reputation
Risk Cover for

Loss or Damage
Damage or
Destruction
Earthquake/Landslip /
Subsidence
Spoilage
Burglary
or Stolen
Accidental
Damage
Manager
Administration
Managing
Insurance Cover
Solving Daily
Queries
Advising
Processing
Claims
Senior Manager
Finance
Accounting of
Insurance Cost
i.
Recording of
Insurance Cost
Accountable to
CFO
It is the policy of LEPARK to maximize the benefits and minimize the costs of
insurance cover for assets serving in best interest to provide effective
safeguards against uncertain events resulting in loss or damage to the
assets.
ii.
LEPARK Board shall ensure that procedures exist to establish and maintain
program that will provide the following:
Underwrites damage to its assets.
Minimizes its exposure and that of its officers, and employees to a

wide range of liabilities.
iii.
Protects its reputation.
The program shall cover all risks of physical loss or damage. Examples of the
risks covered are as follows:
iv.
Loss, destruction or damage caused by fire, lightning, storm or storm

water
Earthquake / Landslip / Subsidence
Spoilage
Burglary or theft
Accidental damage
The Manager Administration shall be responsible for proper management of

insurance coverage and dealing with day to day queries relating to
insurance including organizing additional covers, advising whether LEPARK
has insurance cover for all assets and the processing of claims.
v.
recording of insurance cost and will be accountable to Chief Financial
Officer.
7.1.2.4.1 Reporting of Property Related Losses
i.
The loss, suspected loss, or damage to LEPARK property shall be reported as

soon as possible to the Manager Administration.
ii.
In the event of a theft the Manager Administration shall be notified to take

appropriate measures for initiation of insurance claim.
iii.
The Manager Administration shall initiate investigation and will call and
inform the Insurer about the loss or theft. The administration department
will prepare documentation and will forward it to Manager Administration
for onward submission to insurance company.
7.1.2.4.2 Recordkeeping
i.
A concise, easily referenced schedule of insurance coverage will include, at

a minimum the following:
ii.
The coverage provided, detailing major exclusions.
The underwriter.
The deductible amount.
The upper limit.
The term of the policy.
The date premium(s) are due.
The premium amount.
Records of losses shall also be maintained. This information will be helpful

in indicating the areas where internal controls may need to be improved
and will be useful in measuring the level of risk exposure in a particular
area.
7.1.2.4.3 Procedure for Reporting Damage or loss

i.
If a LEPARK asset is damaged, lost or stolen then a report will be filed to

Administration Department.
ii.
LEPARKs insurance policy will also cover any asset owned by or in the use of
an employee while the asset is being used in connection with LEPARKs
business and with LEPARKs consent. (E.g. Vehicle).
iii.
In case of negligence the person in whose charge the asset was at the time
the damage or loss is sustained will be responsible for paying the excess to
the repairer.
iv.
Any correspondence (also third party correspondence) regarding loss or

damage will be forwarded to the Manager Administration.
Accounting Entries:
Following accounting entries shall be passed for insurance premium:
1.
When Insurance premium is accrued:
Account Title
G/Ledger code
Dr. Insurance premium
Relevant code
Cr. Insurance payable
Relevant code
2.
When Insurance premium is paid:
Account Title
G/Ledger code
Dr. Insurance payable
Relevant code
Cr. Cash / Bank
Relevant code
7.1.2.4.4 Use of LEPARK Equipment from One Location to another Location

To protect LEPARK equipment and ensure insurance coverage the following steps
shall be taken before relocating equipment from one location to another location:
The Manager Administration will authorize the use of such equipment from
one location to another location.
The equipment will be identified as LEPARK property and marked with

a special number.
The security officers will require written authorization for removing

equipment from one location to another location. The staff transporting
equipment from one location to another location will present suitable
identification such as I.D. card or a written authorization from the Manager
Administration or a person designated by him.
Page 8 0
7.1.2.4.5 Compensation for Loss by Theft of LEPARK Owned Moveable Assets

i.
Compensation for losses suffered due to theft of moveable assets shall be

paid out of LEPARKs general funds, when the following conditions are met:
The missing asset is listed on the departmental records (e.g. Cash

register in case of theft of cash or equipment inventory records in
case of loss of equipment).
ii.
The missing equipment is marked with an identification number.
There is evidence of forcible entry or forcible removal.
The property is replaced with an identical or equivalent item.
The concerned person or head of concerned department shall notify the

administration department regarding theft of LEPARK asset. The Manager
Administration will initiate investigation and will perform all the procedures
given above.
7.1.2.4.6 Good Practices to be followed for Safeguarding of LEPARK Assets

i.
Ensure that moveable assets and equipment are marked with a LEPARK
special number and recorded in departmental records or inventories;
ii.
Ensure that adequate security measures are in place and maintained to

protect the loss of such assets (e.g. Cash or equipment);
iii.
There should be immediate transfer of cash to bank at the day end and no
cash should be kept in LEPARK premises at night except petty cash.
iv.
Obtain advice from Security Services as required to ensure that appropriate

security measures are in place to protect moveable assets and property;
v.
Report all suspected
losses to Security
Services
and
Administration when the loss has occurred for further action;
to Manager
vi.
Inform Security Services & administration department in advance of any

transfer of LEPARK property or equipment from one location to another
location;
vii.
Retain original purchase orders and receipts to enable filing claims for
compensation of loss of such assets and equipment.
viii.
Conduct periodic audits of security systems and practices and when

required make recommendations for improvement. This will be the job of
administration department and Manager Administration will be responsible
to ensure that the audits have been performed;
7.1.2.5
i.
Physical verification
It is the policy of LEPARK that a proper system of fixed asset control be

introduced to validate the existence, location, and custodianship of fixed
assets in order to investigate and take corrective action to resolve the
discrepancy and avoid future problems.
ii.
The Manager Administration shall establish guidelines and procedures for

efficient conduct of physical verification process ensuring that the assets
are properly safeguarded and maintained.
7.1.2.5.1 Defining the Inventory Criteria

i.
The administration department in coordination with Accounts and Finance

Department shall determine the dates of the inventory and the criteria that
will be used to document that a property item has been accounted for
during the inventory. The steps to be followed will be as follows:
Establishing starting and ending dates for the inventory.
Producing the list of items for verification.
Establishing the criteria for determining that an item in the

inventory base has been accounted for.
Establishing the reconciliation schedule.
Defining the method used to perform the audit of the physical

inventory.
ii.
Establishing the inventory status-reporting schedule.
A physical inventory of equipment will be taken annually.
7.1.2.5.2 Controls
i.
A control system shall be established by the Manager Administration

ensuring adequate safeguards of assets to prevent loss, damage, or theft.
Any loss, damage, or theft will be investigated and fully documented.
ii.
In order to ensure objective reporting of inventory items, a physical

verification shall be performed by personnel having no direct responsibility
(custody and receipt/issue authority) for assets subject to the inventory
count. If it is not feasible to use such personnel for any part of the
inventory, then those portions are, at least, tested and verified by a person
with neither direct responsibility for that portion of the inventory nor
supervised by the person directly responsible.
iii.
Written
physical
verification
instructions
shall
be
documented and
distributed to each person participating in the verification process. The

instructions will describe:
How and where to inspect each item.
What information to record.
What to do when they have a question.
What procedures to follow when they finish their assignments.
What procedures to follow when equipment is located but not listed.
The procedure by which the person counting the assets attests to the
accuracy of the count, such as by signing his or her name at the
bottom of each inventory page, or signing a cover page for a group
of pages sorted by another method (batches, location, equipment

type, etc.).
How to record assets not being used or in an obviously unserviceable

condition. Such information will be used to schedule repair or
disposition of such assets.
After the physical inventory count is completed, results will be reconciled with the
accounting records. Any differences between quantities determined by the physical
inspection and accounting records will be investigated to determine the causes of
the difference.
The following steps will be followed during the reconciliation process:
Search the inventory lists to determine whether inventory noted during the
count as unrecorded is, in fact, listed on another portion of the inventory.
Enter unrecorded assets into the inventory system as soon as possible after
discovery.
If a significant number of unrecorded assets are located, indicating a major

problem with the asset recording procedures, the problem will be identified
and corrected in a timely manner.
7.1.2.5.4 Lost or stolen property

i.
In the event of suspected loss or theft, the concerned person or department

shall notify the event immediately to the Manager Administration. The
Manager Administration will take necessary action as appropriate and
initiate an insurance claim for lost or stolen item in order to:
Minimize the loss.
Ensure that investigations are not hampered.
Ensure that improvident settlements are not made.
Ensure that incorrect personnel actions are not taken.
Remove the lost or stolen property from the agencys inventory and
accounting records where applicable.
Maintain records for losses of assets in accordance with approved

records retention schedules.
ii.
After the inventory is reconciled, the Manager Administration will certify

the reconciliation with a statement and signature that it is correct. If the
certification cannot be made, the Manager Administration will disclose that
fact and shall determine the appropriate course of action.
7.1.2.5.5 Retaining the physical verification record

The certification, together with the reconciliation and the inventory listing, will
serve as the support for the inventory balance and for accounting adjustments, if
any, and will be retained. The retention of this documentation will be in
accordance with the approved records retention schedules.
7.1.2.6
i.
Disposal
It is the policy of LEPARK to achieve the best possible outcome for LEPARK
by gaining the best available net return when selling the assets and ensure
LEPARK is even-handed, open and honest in all its dealings.
ii.
The Chief Financial Officer shall establish guidelines when disposing of fixed
assets and ensuring the accounting of all disposal equipment at the time of
disposal in accordance with the regulations and the provisions of Companies
Ordinance 1984.
iii.
recording of gain or loss on disposal of fixed assets and is reportable to
Chief Financial Officer.
iv.
A Fixed Asset Disposal Committee (FADC) shall be formed by the Managing

Director who shall be responsible for managing the disposal of surplus assets
and be accountable for all decisions they take in the disposal process. The
Fixed assets Disposal Committee (FADC) shall be reportable to the Managing
Director.
7.1.2.6.1 Disposal Method
i.
All LEPARK assets shall be disposed of by completing the Asset Disposal Form
(ADF). The Asset Disposal Form shall be prepared by the concerned unit or
administration department clearly stating the reasons for disposal along
with cost, depreciation, book value and the market value. Disposed assets
may be given away to non-profit organizations, sold to the general public or
employees or junked.
ii.
Under no circumstances, should individuals or departments remove

LEPARK assets tags and/or dispose of any fixed assets belonging to LEPARK
without adhering to the disposal policies. An asset disposal will be recorded
when a properly completed and signed Asset Disposal Form is received by
the Accounts and Finance Department. The
Accounts and Finance
Department will make adjustments in the books on receiving cash / cheque

and issue an official receipt to the buyer before handing over the asset.
Individuals or departments are not permitted to sell fixed assets.
iii.
For disposal of fixed assets, a Fixed Asset Disposal Form shall be completed
and the item shall be disposed in the following manner:
The Fixed Asset Disposal Committee will determine the most

appropriate venue to publicize the sale of available equipment,
including a time frame for the bid process.
Offers from potential purchasers will be obtained through a sealedbid process. The item will be sold to the purchaser with the highest
offer.
If the item cannot be resold, it shall simply be disposed off with

normal trash.
The Fixed Asset Disposal Committee will facilitate the processing of

the Fixed Asset Disposal Form and Accounts and Finance Department
will document the disposal on the Fixed Asset Register.
7.1.2.6.2 Disposal Criteria

Some of the criteria for retirement of assets include:
Lost, destroyed, or damaged.
Dismantled.
Stolen.
Unaccounted-for as a result of inventory.
Abandonment.
Traded in/replaced.
Identification markings shall be removed, to the extent practical, before disposal

of assets. If removal of the markings is impractical, additional permanent markings
shall be added to the assets to indicate its disposal.
7.1.2.6.3 Disposal Process
The Board of Directors shall at its discretion allow sale of any fixed asset to the
staff. However in the interests of promoting probity, fair dealing and openness,
surplus assets shall not be sold or otherwise transferred to staff (or their relatives
or friends) unless arising from a public competitive process i.e. tendering or
advertised sale which is open to the public.
Equipment will only be sold once it is determined that the equipment has no value
to any department within LEPARK. Sale proceeds will be recorded to LEPARK
relevant head of account and gain or loss shall be charged properly to the relevant
head of account. If the asset relates to or is acquired under a specific fund, then
the sale proceeds will be applied as per donor requirements.
Fixed Asset Disposal Committee will coordinate all sales of equipment. Before any
equipment is sold, the procedures for disposal of equipment shall be followed.
7.1.2.6.4 Assessment
Many decisions in this policy require an assessment of the market value of an item.
Such assessments should be undertaken by the FADC. The FADC should take into
consideration the original purchase price, the age of the equipment, an assessment
of the usefulness of the equipment and of its possible market value. Consultation
with Manager Administration or some specialist (e.g. IT specialist in case of IT
equipment) is strongly recommended as FADC is accountable for asset disposal
decisions.
7.1.2.6.5 Abandonment of Assets
Assets will be considered to be abandoned when it is determined to have no
commercial value, or if the value of the assets is so low that the cost of its care
and handling would exceed the estimated proceeds from its sale.
The Fixed Asset Disposal Committee may initiate a request to abandon assets. The
request, along with supporting documentation shall then be forwarded to Manager
Administration for onward final approval of LEPARK Board.
7.1.2.6.6 Replacement
LEPARK Board may authorize exchange sale (trade-in) for like items. This includes
assets replaced under warranty where the vendor has a policy of replacement
rather than repair. The assets records are properly adjusted after the item has
been exchanged and the replacement items are recorded in the Fixed Asset
Register.
After considering the conditions for the replacement of the fixed assets the
guidelines given below shall be followed:
The concerned unit will make a list of all such replaceable items and send it
to the Administration. This list will also be reviewed by Fixed Asset Disposal
Committee.(FADC)
The cost of purchasing these replaced items must have been in the budget
of the concerned unit for that year.
Administration will call for bids through advertisement on the behalf of

FADC.
On the receipt of the bids the Administration shall submit the bids to the
FADC.
After scrutiny of the list the FADC shall submit the list to LEPARK Board for
approval.
After getting the approval, the FADC shall dispose off the items.
7.1.2.6.7 Scrapping
Sales of surplus scrap materials will be conducted using the competitive bid process
unless it is more advantageous to not do so. These sales will be conducted using
traditional and non-traditional means, including on-line asset sales auctions.
7.1.2.6.8 Building
For disposal of building all the above mentioned procedure will be followed and the
accounting entries for disposal will be as follows:
Accounting Entries:
1.
On receipt of sale proceeds:
Account Title
G/Ledger code
Dr. Cash / Bank
Relevant code
Cr. Disposal of Assets
Relevant code
2.
To account for profit / loss on sale:
Account Title
G/Ledger code
Dr. Accumulated Depreciation Building

Cr. Building
Relevant code
Relevant code
Dr. (Balance) disposal of assets

The balance in the Disposal of Assets account debit or credit shall be transferred to
the Profit and loss account.
Furniture and Fixtures

Fixed Asset Disposal Committee will contact the relevant unit to determine if there
is use for the furniture and fixtures. If there is no use for the furniture and fixtures
Fixed Asset Disposal Committee will list the furniture on the obsolete equipment
list. All furniture and fixtures will be sold for a value as determined by the Fixed
Asset Disposal Committee.
Accounting Entries:
The accounting entries for disposal of furniture and fixtures will be as shown above
in disposal of building.
7.1.2.6.9 Computers
Generally Fixed Asset Disposal Committee will contact the IT Department to
determine if the computer equipment is usable in whole or for parts. If it is
determined that the computer offers no value in parts or service Fixed Asset
Disposal Committee will list the equipment as available for sale on the obsolete
equipment list. All equipment will be sold for a value as determined by the Fixed
Asset Disposal Committee, but at a minimum the carrying value unless it is
impracticable to do so.
Accounting Entries:
The accounting entries for disposal of computers will be as shown above in disposal
of building.
7.1.2.6.10
Machinery/Equipment
Fixed Asset Disposal Committee will instruct the department on the disposal
method and above procedure will be followed.
Accounting Entries:
The accounting entries for disposal of equipment will be as shown above in disposal
of building.
Page 9 0
If the equipment is acquired under specific fund relating to a specific project and
that equipment is no longer required for that project, it may be used for other
activities or disposed off with the approval of donor in compliance with the
conditions specified by the donor in this regard.
7.1.2.6.11
Vehicles
For disposal of vehicles above procedure will be followed and disposal entries will
be made in the manner identified for other assets.
7.1.2.6.12
Amortization of Intangibles (IAS-38)
Intangible assets of LEPARK are stated at cost less accumulated amortization.

Amortization is charged to income on the straight line method whereby cost of an
intangible asset is written off over its estimated useful life at specified rate.
Intangible assets are amortized over their estimated useful lives unless they are
inexhaustible. Amortization on additions to intangible assets is charged from the
month in which the asset is acquired or capitalized, while no amortization is
charged from the month in which the asset is disposed off.
The objective of the policy is to provide for amortization for proper recording in
the financial accounting system to reflect the accurate net asset value of
intangible assets during their useful lives.
The Senior Manager Finance shall be responsible for proper calculation, accounting
and recording of amortization.
Procedure
LEPARK amortizes all its assets using straight line method over their estimated
useful lives.
The amortization expense for each period shall be charged to income unless it is
included in the carrying amount of another asset. Sometimes, the future economic
benefits embodied in an asset are absorbed in producing other assets. In this case,
the amortization charge constitutes part of the cost of the other asset and is
included in its carrying amount.
Each part of fixed asset with a cost that is significant in relation to the total cost of
the fixed asset shall be amortized separately.
Initially recognized amount of fixed asset is allocated to its significant parts and then
these parts are amortized separately.
If significant parts of fixed assets have a useful life and a amortization method that
are the same as the useful life and the amortization method of another significant
part of that same asset then such parts may be grouped in determining the
amortization charge.
To the extent that LEPARK amortizes separately some parts of a fixed asset, it also
amortizes separately the remainder of the asset. The remainder consists of the
parts of the asset that are individually not significant. If LEPARK has varying
expectations for these parts, approximation techniques are necessary to amortize
the remainder in a manner that faithfully represents the consumption pattern
and/or useful life of its parts.
Amortization Amount and Amortization Method
The amortizable amount of an asset is allocated on a systematic basis over its
useful life and is amortized using straight line method.
For an intangible asset, amortization is the accounting process of allocating the
intangible assets capitalized cost to expense in a systematic and rational manner
to those periods expected to benefit from the use of the asset. Amortization is not
a matter of valuation but a means of cost allocation. Intangible assets are not
amortized on the basis of a decline in their fair market value, but on the basis of
systematic charges to expense.
Where an intangible asset has been recorded, its cost shall be amortized by
systematic charges to income over the estimated period of benefit of the asset.
The residual value and the useful life of an asset are reviewed at each financial
year-end and, if expectations differ from previous estimates, the change is
incorporated in the financial statements.
Amortization of an asset begins when it is available for use, i.e., when it is in the
location and condition necessary for it to be capable of operating in the manner
intended by LEPARK management.
Amortization of an asset ceases when the asset is derecognized. Therefore,
amortization does not cease when the asset becomes idle or is retired from active
use and held for disposal unless the asset is fully amortized.
Management will consider the following factors when determining the useful life of
an intangible asset:
Expected uses for the asset and the ability to use the asset efficiently;
Estimates of useful lives of similar assets.
The strategy for obtaining maximum economic benefit from the asset.
Rates of technical, technological or commercial obsolescence in the

industry.
Expected actions by competitors and potential competitors.
The willingness and ability of LEPARK to commit resources to maintain the

performance of the asset.
The period of LEPARKs control over the asset and any legal or other
restriction on its ability to use the asset.
Whether the useful life of the asset is based on the useful life of any of
LEPARKs other assets.
Computer Software Amortization rate

The amortization rate used by LEPARK for the amortization of computer software is
20%.
Name of Item
Software
Software
G/L Code
Dr/Cr
Title of Account
Relevant code
Dr.
Depreciation*
Relevant code
Cr.
Accumulated
Depreciation- Software**
There should be a new account code to which amortization should be charged.
** The name of this account code should be accumulated amortization-Software.
7.1.2.6.13
i.
Intangible Assets Acquisition and Capitalization
It is the policy of LEPARK that the cost of an intangible asset shall be

recognized as an asset if, and only if
It is probable that future economic benefits associated with the

asset will flow to the entity.
ii.
The cost of the item can be measured reliably.
An asset is classified as an intangible asset and required to be recorded on

LEPARKs record when it meets all of the following additional criteria:
iii.
The asset has an estimated useful life greater than 1 year.
The asset has not been purchased with the intention of resale.
Expenditure may be capitalized if it is expenditure on an existing asset and

the expenditure was incurred to improve the assets functionality, not merely
to reinstate its future economic benefits (e.g. maintenance of assets).
iv.
Once it has been established that an asset meets the criteria for
recognition, it is recorded on LEPARKs records at cost price (or cash price
equivalent if purchased using deferred payment and/or foreign currency).
Donated items are recorded at their fair value.
v.
After
initial
recognition,
LEPARK
must
choose
the
cost
model
of measurement. This model must be applied across an entire class of

assets, and cannot differ among individual assets in a class.
7.1.2.6.14
Responsibility
Senior Manager Finance shall be responsible for proper accounting, recording and
capitalization of intangible assets and will be accountable to Chief Financial
Officer.
The Manager Administration shall be responsible for proper management of
intangible assets.
Senior Manager Finance and Manager Administration shall be accountable to Chief

Financial Officer and Managing Director.
7.1.2.6.15
Procedure
Intangible assets will be recorded at cost initially on acquisition. Cost includes all
costs necessary to bring the asset to working condition for its intended use.
Capitalization of Software Costs
Software implementation generally involves three phases. These phases and their
characteristics are as follows:
a.
Preliminary project phase - Conceptual formulation of alternatives, the

evaluation of alternatives, a determination of existence of needed
technologies and the final selection from among the alternatives is made.
b.
Application development/implementation phase - Design of chosen path

including software configuration and software interfaces, coding, installation
of computer hardware, testing, including parallel processing phase, costs of
training, employee and consultant travel expenses and consultant fees.
c.
Post-implementation/operation phase - Training and application maintenance

activities incurred after phase two is complete.
Costs associated with the preliminary project and the post implementation/
operating phases should be expensed as incurred. Internal and external
costs associated with the application development phase should be
capitalized. Costs to develop or procure software that allows for access or
conversion of old data by new information systems should also be
capitalized. General and administrative costs and overhead expenditures
associated with software development should not be capitalized as costs of
software.
Capitalization of costs should begin when the preliminary project phase is
complete and LEPARKs management has implicitly or explicitly authorized or
committed to fund the software project with the intent that it will be
completed and used to perform its planned functions. Capitalization should

cease no later than the time at which substantial testing is complete and
the software is ready for its intended purpose.
If the repair or improvement of software is substantial, it will be capitalized
or amortized as follows:
R*
50,000 & above
Amortize within the year

I**
100,000 & above
Capitalize
Software
* Repair
** Improvement
7.2
RECEIVABLE MANAGEMENT
The objective of the policy is to prescribe guidelines on accounting, reporting,

recording, collecting, and writing off of accounts receivable, to be used for
improving the management over receivable owed to LEPARK.
The Senior Manager Finance shall be responsible for:
Prescribing accounts receivable policies, procedures, and guidelines.
Providing technical assistance to LEPARK regarding the accounting for

receivables.
Monitoring and analyzing the receivables of LEPARK.
Developing systems that are adequate to properly account for and report
their receivables.
Reporting receivables, their age, collection status and funding source.
The Senior Manager Finance shall be reportable to the Chief Financial Officer for
ensuring implementation of policy and procedures regarding LEPARK receivables.
7.2.2 Procedure
7.2.2.1 General Instructions
Receivable master records and billing codes shall be maintained by the Accounts
and Finance Department and access to those records shall be granted to only those
employees who need it for performing their assigned tasks.
To assure proper and accurate billing, the employees shall make it certain that the
charges billed are proper, clearly and correctly computed and stated, and charged
against receivable to which they relate.
7.2.2.2 Internal Control
To promote the accuracy of LEPARKs accounts receivable records and to discourage
fraudulent manipulation of the accounting records, the Accounts and Finance
Department shall incorporate the following internal control measures for accounts
receivable:
Aging information shall be collected, maintained, reported, and acted upon

in a standardized and consistent manner and a review of past due accounts
shall be performed periodically.
An employee other than the cashier shall handle items disputed by account
receivable.
A reconciliation of individual account balances to the control balance shall

be performed periodically.
Invoices shall be pre-numbered and all numbers accounted for periodically.
An appropriate employee who does not handle cash receipts shall approve
payment of credit balances and credit adjustments to the account balance.
A diligent effort shall be made to collect all outstanding accounts in

general, invoices shall be collected as expeditiously as possible, but the
cost of collection shall not be allowed to exceed the expected revenue.
Accounting data gathering systems shall recognize and preclude situations in

which collection effort and potential benefits become imbalanced.
Regular recovery notices shall be sent to all account receivables.
Where possible, the duties of the accounts receivable bookkeeper and the
cashier shall be separated.
Accounts receivable write offs shall be recorded by an employee who does

not handle cash receipts.
Routine collection procedures shall be documented in writing.
7.2.2.3 Allowance for Doubtful Accounts

Management shall establish an allowance for doubtful receivables account to
reflect the amount that management estimates shall be uncollectible. The
establishment of an allowance account ensures that LEPARKs receivables are not
overstated for financial reporting purposes.
7.2.2.4 Write Off of Uncollectible Accounts
Accounts shall be written off when all collection procedures have been conducted
without result and management deems the accounts uncollectible.
7.2.2.5 Correction of Errors
When an error has been made in an original invoice or it becomes necessary to
adjust a receivable account, the error shall be corrected upon the approval of the
Chief Financial Officer and a record shall be maintained indicating the nature and
amount of the adjustment that has been made to a receivable account.
7.2.2.6 Accounting for Receivables Written Off
Uncollectible accounts may be written off in LEPARKs financial accounting records
and no longer recognized as collectible receivables for financial reporting
purposes, but the legal obligation to pay the debts shall remain. Accounts written
off remain debts of LEPARK until discharged.
In order that realized revenue is reflected properly, bad debts shall be regularly
recognized in the accounts of LEPARK.
All bad debts shall be provided for as specific accounts are deemed to be
uncollectible.
Writing off an accounts receivable is sensitive and shall therefore be subject to
strong internal accounting controls. All write-offs of uncollectible accounts
receivable shall require the approval of the Board of Directors.
A debt shall be considered to be uncollectible when it meets one of the following
criteria:
All reasonable collection efforts have been exhausted.
The cost of further collection action shall exceed the amount recovered.
The debt is legally without merit or cannot be substantiated by evidence.
The debtor cannot be located.
The available assets or income (current or anticipated) are insufficient.
The debt was discharged in bankruptcy.
The debt has been compromised, in the best interests of LEPARK.
Because some accounts receivable may prove to be uncollectible, the Accounts and
Finance Department shall be responsible for determining an appropriate amount as
an allowance for those accounts considered to be uncollectible each June 30th.
The department shall establish an allowance for doubtful accounts to reflect the
estimated uncollectible accounts. This allowance shall be used to reduce the total
amount of accounts receivable in LEPARK financial statements.
Several methods may be used for estimating the amount of uncollectible accounts
receivable to be recorded as an allowance for doubtful accounts.
7.2.2.7 Aging of Accounts Receivable
When using an aging of accounts receivable, individual receivable account balances
are categorized according to the length of time they have been outstanding.
The management estimates the relative uncollectible part for each category based
on past experience. The estimated uncollectible amounts in each category are
totaled to determine the total allowance.
7.2.2.8 Reconciliation and Review
Aged listing of individual receivable balances shall be prepared at least quarterly
and shall reflect the results of billing and collection follow-up activity. The Chief
Financial Officer shall review old balances.
The Accounts and Finance Department shall ensure that subsidiary ledger records
are reconciled to the control account balances at least quarterly.
7.2.2.9 Division of Responsibility
Personnel responsible for the following activities shall be functionally segregated
as follows:
Establishment of credit.
Recording of charges.
Recording of cash collections.
The Accounts Staff shall enter approved transactions / data into the computer
system. The Senior Manager Finance shall approve the transactions before their
input to the computer. The Chief Financial Officer shall review the operations.
A subsidiary record of balances written off as uncollectible shall be maintained. All
transactions, whether manual or automated, shall have the board approval.
Generally, billings to individual debtors shall be accessible only to personnel with
functionally appropriate authority.
A clear distinction shall be made between canceling accounts receivable and
writing off accounts receivable. Accounts receivable can be canceled or adjusted
when LEPARK is not entitled to collect the money. Accounts receivable shall not be
canceled to avoid write off procedures.
Page
100
A monthly accounts receivable report shall be completed by the Accounts and Finance
Department.
7.2.2.10
Minimum Prescribed Information
LEPARK shall obtain the following minimum prescribed information on prospective

debtors:
Full name of the Firm/ Company/ Contractor, and any previous name(s) if
applicable.
Full address of the Firm/ Company/ Contractor along with complete

address.
Full address of the Firm/ Company/ Contractor along with complete

Telephone numbers, Fax numbers.
Copy of registration certificate.
Copy of National Tax Numbers and Sales Tax Numbers.
Copy of Computerized National Identity Card Number.
Accounting Entries:
1. When income is accrued:
Account Title
G/Ledger code
Dr. Accounts Receivable
Relevant code
Cr. Deferred Income
Relevant code
2. When payment is received:

Account Title
G/Ledger code
Dr. Cash/Bank
Relevant code
Cr. Accounts Receivable
Relevant code
3. When income is recognized:

Account Title
G/Ledger code
Dr. Deferred Income
Relevant code
Cr. Income
Relevant code
7.3
ADVANCES AND DEPOSITS
7.3.1 Policy Statement

It is the policy of LEPARK to establish efficient control practices as part of the
financial management process to ensure that the advances and deposits are given
only upon proper authorization, and are properly recorded in a manner consistent
with the overall strategic goals of LEPARK.
7.3.2 Objective
The objective of the policy is to establish procedures and guidelines that shall be
followed in administering the advances and deposits program ensuring that they
are properly secured, maintained, recorded and used for valid purpose.
7.3.3 Scope
This policy shall cover all types of advances made to employees and for specific
purposes and deposits made by LEPARK. Employees with any type of cash handling
function shall be required to be familiar with the requirements of this policy.
The Chief Financial Officer shall be responsible for the enforcement of procedures
governing the cash management, maintenance of the records, appropriate usage,
accounting for advances and deposits and performing periodic reviews of
procedures being followed.
The Chief Financial Officer shall be accountable to the Managing Director for the
proper execution of matters ancillary in the administration and monitoring of the
activities undertaken in this regard.
7.3.4.1
Basic Procedure and Guidelines
Requests for cash advances shall be submitted on the Cash Advance Request
Form in order to provide the following information:
The amount requested.
Purpose of the advance.
Name of the individual who shall be using the advance.
Length of time the advance shall be needed.
Signatures of both the person responsible for the account and the
authorized administrator.
The advances shall be issued for LEPARK related business activities.
The amount advanced shall not exceed the estimated cash required for the
activity.
All advances shall be initially charged to LEPARK receivable account.
The individual receiving the advance shall personally be liable for any loss
of a cash advance.
Unused advances shall be returned to LEPARK within 30 days after the

activity completion.
Advances to employees shall be given against their current months salary,

which shall be fully recovered from the same month salary.
Advances for approved purchases shall be given to authorized personnel,

accounting of which shall be completed within two weeks.
Cash advances for travel shall be made to LEPARK employees only.
7.3.4.2
Salary Advances from Current Months Pay
Relevant section of HR Manual for salary advances should be followed.

7.3.4.3
Advances Secured by Provident Fund
HR Manual Section on advances secured by provident fund should be follwed.

7.3.4.4
Travel Advances
Cash advances for traveling shall not be allowed unless one or more of the
following circumstances apply:
Travel can be for any number of days without return to employee's

site or LEPARK location during those days.
Traveler shall be paying for all business related expenses for a group
consisting of 2 or more individuals.
All travel advances must be approved by the employees appropriate

approving authority.
LEPARK shall not provide cash advances for airfare. Requests for
cash advances shall be limited to a six- month period of time, i.e., trip
from/to dates may not exceed six months. For trips of longer duration,
multiple cash advance requests shall be required.
After approval for the cash advance, a cash advance report shall be
generated through the system. The Cash Advance Request Form shall be
attached with the cash advance report and retained in the proper
documentation.
All cash advances received from the Accounts and Finance Department shall
be repaid in full within 15 calendar days following completion of the trip.
Failure to repay a cash advance within this period shall result in the amount
being deducted from payroll earnings.
A cash advance shall constitute a promissory note and payroll deduction

authorization which shall allow LEPARK to recover the advance from
any salary owed the employee in the event of termination of employment.
This deduction from payroll shall be used as a last resort only in the event
all other efforts to collect the advance have failed.
LEPARK shall retain the right to deny travel advances to any individual who
has not submitted documentation in a timely manner for a previous
advance.
7.3.4.5
Reconciling Advances
All cash advances shall require, at minimum, monthly review and reconciliation to
the authorized cash advance levels.
Employees accounting for a cash advance shall complete the employee expense
worksheet to document their expenses within 15 days of the scheduled advance
end date. Employee signature shall be required on the worksheet. Receipts and
other support documentation shall be attached to this worksheet and submitted to
the Accounts and Finance Department for processing.
To ensure an accurate reconciliation of a cash advance:
The preparer shall:
Process an expense report in the financial system using the information

supplied on the employee expense worksheet and receipts.
Verify the expenses meet LEPARK policy.
Attach all original-supporting documents for itemized expenditures, number

the documents.
Total the amounts on the itemized expenditures to ensure they agree with
the total posted on the Cash Advance Request Form.
Indicate the balance remaining on the original Cash Advance after taking into
account the previous expenses on the Cash Advance line.
Complete required fields and submit to approver.
Print expense report, attach worksheet, receipts etc., and forward to

approver.
7.3.4.6
Miscellaneous Advances
Advances may be requested to cover anticipated cash expenditures to be incurred

on behalf of LEPARK for a sponsored event, prior to the event taking place.
Advances made to outside parties like advances made to building contractors shall
be adjusted against the running bills as per the terms and conditions of the
agreement.
For events that require cash payments such as freight charges, meal charges on
trips, etc., departments shall submit requests for advances in writing on the Cash
Advance Request Form to the Accounts and Finance Department. Each request shall
provide an explanation of the need for the cash advance.
The following steps shall be followed:
When cash payments are required as a consequence of contractual

arrangements, a copy of the contract shall be presented with the request
for an advance.
Departments delaying return of advances shall not be allowed further

advances without either the clearing of those in question or the approval of
the Managing Director.
When the need for the advance is complete, the department shall return
the unused cash, to the Accounts and Finance Department.
All receipts shall be verified on advances being cleared. Any questionable

receipts shall be referred to the Manager Accounts.
The expenditures must conform to the approved budget categories, and the
expenditures must not result in excess costs beyond flexibility limits of the
budget categories without prior written approval from the Managing
Director.
7.3.4.7
Review
The Accounts and Finance Department shall prepare monthly summary and detail
reports by departments of outstanding cash advances. These reports shall be sent
to the Chief Financial Officer for review and any necessary changes.
The Chief Financial Officer shall review cash advances for end dates, outstanding
cash advances, and amount expensed against original Cash Advance Request.
Accounting Entries:
1.
When payment is made:
Account Title
G/Ledger code
Dr. Advances
Relevant code
Cr. Cash/Bank
Relevant code
2.
When advance is adjusted:
Account Title
G/Ledger code
Dr. Relevant head
Relevant code
Cr. Advances
Relevant code
Deposits
LEPARK deposits shall be made in guidance of the directions issued by

LEPARK Board that shall best describe the way consistent with the carefully
crafted strategies designed for the accomplishment of the strategic
financial management.
The deposits shall be made only if they are in line with the terms of
agreement and/or for valid purposes.
The approving authority for making deposits shall be LEPARK Board or

powers vested to the Managing Director by LEPARK Board. Before approving,
the Managing Director shall assure that deposit is being made keeping in
view the considerations of the relevant agreement or in accordance with
the issued guidelines.
The Chief Financial Officer shall be responsible for the management

including the accounting and maintenance of records etc., and vital
administration of matters with the oversight of the Chief Financial Officer
who shall assist him in carrying out the duties, and shall oversee the whole
process of deposit management.
Accounting Entries:
1.
When payment is made:
Account Title
G/Ledger code
Dr. Deposit
Relevant code
Cr. Cash/Bank
Relevant code
2.
When payment is received:
Account Title
G/Ledger code
Dr. Cash/Bank
Relevant code
Cr. Deposit
Relevant code
7.4
INVENTORIES (IAS-2)
The objective of the policy is to provide guidance and direction in relation to the
management of inventories and to ensure that recorded inventory is accurate and
maintained properly. However, this does not cover the inventory of Parking Tickets,
as it are maintained by Revenue Department. For Inventory of Parking Tickets refer
to Revenue Collection and Assurance Manual.
The inventory in-charge shall have the responsibility for proper management of
inventory and shall be accountable to the Senior Manager Finance.
The Senior Manager Finance shall be accountable for ensuring that the inventory incharge's function is implemented and maintained, and to annually certify the
accuracy of the inventory account.
The Chief Financial Officer shall be responsible for proper accounting of
inventory.
7.4.1.1
Receipt of inventory items
When received directly in the using department from the supplier, the storekeeper
will locate and tag the item.
When any item of inventory is ordered, a copy of the purchase order must be sent
to the inventory in charge with transaction number noted on the receipt. The
following information must be provided:
Supplier's name
Serial number
Product number
Date received
Location
Unit acquisition cost (if not already clearly identified)
Name of department taking possession
Name of person to whom the item has been assigned.
7.4.1.2
Inventory Records Maintained by the Accounts and Finance Department
The tag number assigned to an inventory item serves as the central

mechanism for establishing a unit record in the inventory control system.
Each record will contain information on the item including:

Description
Suppliers identification number
Original cost
Purchase order number (if applicable)
Acquisition date
Issuance date
Category
Department to which inventory item is assigned
Person to whom the inventory item is assigned
Location: Building and room.
This information shall be kept with the Store In-charge.

7.4.1.3
Departments Reporting Changes in Status of Inventory
All inventory items that are transferred, stolen, scrapped, traded in, etc.,
must be reported to the Manager Administration by the department that was
accountable for the inventory item. Status changes are to be reported as they
occur.
All inventory items that are disposed off must be sent to the Manager
Administration to allow the disposed off items to be removed from the
inventory listing.
Inventory owned by LEPARK may be removed from office/ field offices

only with the permission of the department head. Inventory taken off to the
other
offices must be under the supervision of an employee of LEPARK main office/

field formation office. .
7.4.2 Inventory Control Tools
Department heads are responsible for maintaining and safeguarding all LEPARK
inventory entrusted to their care. Items of inventory are recorded centrally for
each department.
All Departments shall assist and accompany inventory control staff in taking a
thorough and complete inventory of all items in their possession. Departments will
be notified in advance by the Manager Administration when inventory will be
taken.
All inventories are owned by LEPARK and assigned to a specific office in which the
asset is physically located. Each department head shall report their findings
(inaccuracies) to the Manager Administration for appropriate resolution.
7.4.3 Valuation
All inventories which are valued for the purpose of inclusion in LEPARKs annual
financial statements are to be valued at the lower of cost or net realizable value.
Where practicable, the cost of inventories is assigned to particular stock items on a
Weighted Average basis. Cost comprises purchase prices and costs directly incurred
in bringing the item to its present location and use.
7.4.4 Recording of inventory
Inventory records are maintained by persons not responsible for the physical
handling of stock in the store.
Inventory shall be recorded on the basis of receipt obtained from the supplier and
any other documentation relating to purchase of inventory.
Inventory is recorded in proper account codes. Each item of inventory shall be coded
separately. A separate project and organization combination is maintained for each
inventory location. Inventory shall be recorded as an expense when it is consumed.
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A register of inventory shall be maintained by the Store In-charge and it shall be

reviewed by the Manager Accounts and periodically by the Chief Financial Officer in
order to keep the check.
7.4.5 Proper safeguarding
Inventory is the valuable asset of LEPARK. Inventory is only used for specific
purposes. Departments and field formations ensure that their storage and
management procedures provide appropriate security for inventory, to guard
against theft as well as damage. Access to the storage areas is restricted.
Particular attention is paid to readily disposable stocks and stores of high value in
relation to their size.
7.4.6 Unusable Inventory
The inventory items that are damaged or become obsolete are written off via a
journal entry. The journal entry description clearly indicates the reason for the
write off. All disposals are made in compliance with the safety procedures.
Write off and discounted sale of inventory is approved by LEPARK Board of
Directors.
7.4.7
Physical Annual Counting
A physical inspection and counting of inventory is conducted quarterly by the

Manager Administration to verify and check the inventory records. A count of
physical quantities enables a comparison to be made between the inventory
records and physical inventory, thus revealing any discrepancies caused by clerical
errors, theft or deterioration.
7.4.8
Quantity Adjustment
Where a stock count discloses a discrepancy between the physical and theoretical
stock levels, the inventory records are altered as soon as the physical count is
verified. This alteration is authorized by the relevant stores officer (preferably not
the inventory record keeper).
Discrepancies are investigated and the entries made to:
Write on surplus stores
Write off shortages of stores
Make any other adjustments
These shall be approved by the concerned department head and Board of Directors.
7.5
TREASURY MANAGEMENT
7.5.1 Cash Collection, Deposit and Reconciliation

The section of the manual provides guidelines for the appropriate establishment,
use, and accountability of cash to safeguard cash and to ensure the timely and
proper posting of accounts. Procedures have been established to encourage
effective administration and internal control of
cash
handling operations
throughout LEPARK that shall strength quality control, management and systems for
financial control.
7.5.1.1
Scope
This policy shall apply to all personnel involved in handling any LEPARK cash.
Employees with any type of cash handling function shall be required to be familiar
with the requirements of this policy.
7.5.1.2
Responsibility
The Chief Financial Officer shall be responsible for establishing policies and
procedures for all cash handling activities.
In carrying out this duty, the Chief
Financial Officer shall be responsible for:
Establishing and enforcing policies and procedures governing the cash

collection, handling, custody, and cash deposit.
Requiring the establishment and maintenance of records, accounting for

cash received and paid by LEPARK.
Performing periodic review of policies and procedures established for the

cash handling operations to ensure that sound internal controls are in place
for the safeguarding of the assets.
7.5.1.2.1 Collection
All money received shall be brought into account immediately on double

entry system in the general cash book.
The cash book shall be closed daily and receipts and expenditure shall be
reconciled with bank balances every month.
All money collected for LEPARK from any source shall be deposited with the
Accounts and Finance Department on an approved cash receipt form.
The Accounts and Finance Department shall be responsible to ensure the

security and safe-keeping of the money.
All collected monies should be deposited in the designated bank account;

however subject to the approval of Chief Financial Officer, payments may
be made from such collections.
7.5.1.2.2 Departments Authorized to Collect Money

Accounts and Finance Departments shall be authorized to collect or receive money
for LEPARK.
It shall be the Chief Financial Officer responsibility to designate employees who
shall be authorized to handle money, and to ensure that they are properly
instructed in the procedures to be followed.
7.5.1.2.3 Money Received by Unauthorized Personnel
Money received by a department or individual not authorized to receive money,
shall be immediately delivered to the Accounts and Finance Department, along
with any pertinent information concerning its source and application.
7.5.1.2.4 Maintaining Current and Accurate Records

The records shall provide clear documentation of cash receipts from the time of
collection to the time of deposit. This information shall always be readily available
for audits.
LEPARK department that collects cash shall have an established departmental
procedure for documenting all receipts.
Computer generated receipts (as attached in Appendix-4), cash register receipts,
or pre-numbered receipt books shall be acceptable forms of documentation.
Summary of all receipts issued in the whole day shall be reviewed by the concerned
officer as deputed by the Chief Financial Officer on daily basis.
As a minimum, receipt documentation shall include:
Payers name
Amount of payment
Mode of payment (cash, cheque, money order, etc.)
Purpose of payment
Date of payment
funds
Initials of LEPARK employee collecting
This shall apply to receipts collected directly from individuals, as well as cash
receipts received through the mail, by fax, by email or by phone.
7.5.1.2.5 Training and Assistance for Departments
The Accounts and Finance Department shall, in consultation with HR Department,
schedule a mandatory training for all employees authorized to receive cash
receipts who have not already received the mandatory training. During the training
session, the Accounts and Finance Department shall review the departmental
record-keeping guidelines for cash receipts and provide instructions for, but not
limited to, the following:
Maintenance of a log, receipt book, or other methods to record transactions
Reconciliation procedures
Cash shortages and overages
Receipt of electronic payments
7.5.1.2.6 Overages and Shortages

Both overages and shortages shall be noted and tracked by the custodian and then
reviewed and certified by the Manager Accounts. Significant amounts shall be
immediately reported to the Senior Manager Finance and the Chief Financial
Officer. If there appears to be a growing pattern or anything unusual or strange
about the overages and shortages, that information shall be disclosed immediately.
7.5.1.2.7 Deposit of Cash Receipts
Cash receipts shall be deposited promptly. All cash received from the time
of the prior deposit shall be deposited at the same time to facilitate
reconciliation of deposited amounts to amounts recorded in accounting
records.
All money deposited with Accounts and Finance Department shall be

recorded on an approved deposit form, as per the instructions on the form.
The Chief Financial Officer shall approve and control the development and
printing of forms for the collection of cash.
All deposits shall be delivered in a locked cash bag or sealed plastic bag
that has been provided by the Accounts and Finance Department.
Independent lists of cheques deposited and dates of deposit shall be

maintained so that it is possible to compare deposits with receipt details,
thereby identifying potential cash receipt manipulations.
Un-deposited cash receipts shall be adequately safeguarded. Pending

deposit, cash shall be secured in a safe accessible only to authorized
personnel.
7.5.1.2.8 Frequency of Deposits

The cash receipts shall be deposited preferably on the day of receipt by delivering
the deposit to LEPARK Cashier.
If this is not possible (e.g. cash receipts were received after the cashier office has
closed for the day), the cash receipts shall be safely secured overnight and
deposited on the next day.
7.5.1.2.9 Safekeeping of Cash
Cash shall be physically protected through the use of vaults, etc. Accounts
and Finance Department shall be responsible to make whatever provisions
are necessary to properly safeguard cash receipts prior to deposit with the
bank.
When not being used for operational activities, all cash shall be kept in a
safekeeping device, either a safe or locked container.
Lock combinations and the custody of keys shall be maintained by two

persons in such manner that lock should not be opened without presence of
both persons and until both the keys are inserted into the lock; however,
these items shall not be stored in an unlocked desk drawer or unsupervised
area.
7.5.1.2.10
Segregation of Duties
Cash handling operations shall be subject to daily supervisory review and

management.
To minimize the potential for mistakes or misappropriation of cash, the

segregation of cash handling duties shall be in effect.
The duties of collecting cash, maintaining documentation, preparing

deposits, and reconciling records shall be separated among different
individuals.
In case where the separation of duties is not feasible, strict individual

accountability and thorough management supervision and review is required.
7.5.1.2.11
Reconciliation and Review
The reconciliation of cash receipts shall be made to ensure that all cash
received is properly deposited and recorded.
The reconciliation process shall be done in two ways, daily and monthly.
Reconciliation of all funds received shall be done daily, and a reconciliation
of all funds deposited and recorded shall be completed monthly.
Cash receipts shall be reviewed and reconciled to ledger accounts on a

timely basis to ensure that they have been correctly recorded. Accounting
adjustments to ledgers shall also be made on a timely basis.
On the day in which cash is collected, a reconciliation shall be performed at

the close of the day when possible, and no later than the beginning of the
next day.
Cash, cheques and credit cards must reconcile with the daily receipts.
The Cashier shall acknowledge each deposit with a written receipt and each
department shall reconcile cash receipts and deposits to LEPARK financial
accounting system on a monthly basis.
Accounting Entries:
1. When Cash is received:
Account Title
G/Ledger code
Dr. Cash/Bank
Relevant code
Cr. Relevant head
Relevant code
2. When deposit is made:

Account Title
G/Ledger code
Dr. Relevant head
Relevant code
Cr. Cash/Bank
Relevant code
7.5.2 Petty Cash Management

The section of the manual provides guidelines for the appropriate establishment,
use, and accountability of petty cash. Procedures have been established to
encourage effective administration and internal control of cash handling operations
throughout LEPARK.
7.5.2.1
Responsibility
The Board of Directors has delegated the authority and responsibility for establishing
policies and procedures for all cash handling activities to the Chief Financial Officer.
In carrying out this duty, the Chief Financial Officer shall be responsible for:
Establishing and enforcing policies and procedures governing the receipt,

handling, custody, and disbursement of funds.
Requiring the establishment and maintenance of records, accounting for

funds received and paid by LEPARK.
Performing periodic audits of departments with cash handling operations.
Establishing and authorizing banking depositories to be used for LEPARK funds.
Establishing and authorizing procedures for granting, maintaining, and

terminating departmental petty cash funds.
Reconciling all petty cash funds on periodic basis.
7.5.2.2
Procedure
7.5.2.2.1 Appointment of Petty Cash Custodian

The petty cash fund shall be secured at all times. The Chief Financial Officer shall
appoint and approve the appointment of a custodian to monitor its use and
replenishment. A custodian cannot appoint or approve himself/herself. In addition,
there shall be limited access to the fund.
Accounts and Finance Department shall be notified if there is a change in the petty
cash custodian. In order to ensure accountability to the new custodian, Accounts
and Finance Department shall document the fund at the time of the change.
7.5.2.2.2 Responsibilities
It shall be the responsibility of the custodian to ensure that this fund shall be used
to cover only those expense reimbursements for which it is not possible to use
normal purchasing methods such as purchase order. In addition, the custodian shall
ensure that fund use is consistent with the manner described in the documentation
that initially established the fund.
7.5.2.2.3 Safekeeping
Departments handling cash shall be responsible for its safekeeping. Physical
security shall be emphasized to the employee involved in cash handling. The
following general guidelines shall be followed to help maintain the integrity of
those who are handling cash:
Unauthorized persons shall not be allowed in areas where cash is handled.
Safe doors shall be kept closed during working hours and locked at times
when it is not necessary to be in and out of the safe.
Individuals shall keep working funds to a minimum at all times. Cash shall
never be unattended. If an employee leaves his or her work station for any
reason, regardless of how briefly, cash shall be appropriately secured in a
locked place.
For overnight storage and during other periods when cash is not being used,
it shall be kept in a safe.
Under no circumstances an individual shall keep LEPARK cash with their own
personal funds, deposit LEPARK funds in a personal bank account or take
LEPARK funds to ones home for safekeeping.
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120
7.5.2.2.4 Segregation of Duties

Cash handling operations shall be subject to daily supervisory review and
management.
To minimize the potential for mistakes or misappropriation of cash, the segregation
of cash handling duties shall be in effect.
The duties of collecting cash, maintaining documentation, preparing deposits, and
reconciling records shall be separated among different individuals.
In departments where the separation of duties is not feasible, strict individual
accountability and thorough management supervision and review is required.
7.5.2.2.5 Documentation
The Custodian shall properly document each transaction in the following manner:
Document each transaction on the petty cash reconciliation, identifying all

pertinent information (who, purpose, transaction detail and date of
expense). Identify the department and expense code to be charged.
For reimbursement of business meals the names of the individuals in

attendance, the business purpose, date, and place of meeting shall be
clearly stated on either the petty cash reconciliation or the supporting
documentation.
The individual receiving the payment shall sign the petty cash reconciliation
to acknowledge the receipt of cash.
Attach all original receipts to the petty cash reconciliation.
The petty cash reconciliation shall be kept indicating the amount disbursed, the
purposes of the withdrawal, and the signatures of the person receiving the cash.
The receipts, plus cash on hand, shall equal the total amount of the fund at all
times.
7.5.2.2.7 Reimbursement petty Cash Fund

When the petty cash cheque shall be entered into the computer system the debits
shall be made to the expense accounts affected by the summarized transactions.
Once the petty cash fund is reimbursed, all petty cash vouchers and related
supporting documents attached to the cheque request shall be marked "PAID" to
prevent reuse.
7.5.2.2.8 Cash Disbursements from Petty Cash
Disbursements of small amounts of cash shall be made from the petty cash fund for
minor expenses. A petty cash voucher shall be completed and signed by the
individual requesting the funds. Vouchers shall be approved by the Senior Manager
Finance for the cash disbursement. In case of Imprest accounts maintained at other
offices or departments or location etc the petty cash voucher shall be approved by
the head of department/managers/in charge of the office as the case may be.
Normally the following procedure shall be followed for managing the petty cash:
An imprest account of Rs. 50,000/- shall be maintained in Head Office/

Accounts and Finance Department. Imprest accounts at other offices,
departments, locations, and sub offices which may be taken over by LEPARK
shall be decided by the CFO and the Head of department who shall
recommend the limits in each case.
basis.
The reconciliation of the account shall be prepared on a daily
Cashier shall prepare a petty cash voucher with description, date, name of
the person to whom cash is given, the amount, and the signature of the
staff member in charge of the petty cash. This voucher shall be kept in a
cash voucher file.
When a receipt of cash is being made, it shall be checked and attached with
the voucher to complete the entry in the file.
Cashier, who is in-charge of the imprest account shall check the petty cash
for vouchers with no receipts, and notify the person with the cash to
provide the receipts.
The petty cash shall be kept in a fire-resistant safe.
To replenish the imprest account, staff member in-charge of the imprest

account shall prepare the imprest sheet on a daily basis which contains the
details of expenses.
Periodically, the Manager Accounts shall make unannounced counts of the

petty cash.
The annual closing of petty cash shall take place on June 30th.
7.5.2.2.9 Reporting Stolen or Lost Petty Cash

In the event that petty cash is stolen, the following procedures shall be followed:
Inform security personnel and the Administration Department of the theft.
Obtain a copy of the incident report and attach to the petty cash
reconciliation. Submit the reconciliation and report to the Accounts and
Finance Department.
Insurance claim procedure should be followed immediately by the

Administration department.
7.5.2.2.10
Closing a Petty Cash Account
The petty cash fund shall be closed with the Accounts and Finance Department
when the purpose for which the fund is established, has been completed, as
determined by either the Department Head or the management of LEPARK. In
addition, the Accounts and Finance Department shall reserve the right to conduct
periodic usage reviews and, based on the results, shall request closure or reduction
of the fund.
7.5.3 Cash Disbursement
The objective of this section is to establish procedures and guidelines that shall be
followed in performing the cash disbursement activities and ensuring that all
disbursements shall provide a direct benefit to LEPARK.
7.5.3.1
Responsibility
The Chief Financial Officer shall be responsible for the establishing and enforcing
policies and procedures governing the cash disbursement, maintenance of the
records, accounting for cash disbursed and performing periodic reviews of
procedures being followed.
The Chief Financial Officer shall be accountable to the Managing Director LEPARK
for the proper execution of matters ancillary in the administration and monitoring
of the cash handling activities.
7.5.3.1.1 Authorization and Processing of Disbursement
Following procedure shall be followed for authorization of cheque payments:
Cheques shall be numbered sequentially by the financial software package;

cheque numbers shall be verified during check runs. Blank cheque stock
shall only be available to Accounts and Finance Department employees and
not to unauthorized users.
Cheques shall be prepared by specified employees in the Accounts and Finance

Department independent of those giving voucher and invoice approval.
Employees preparing cheques shall verify data to vouchers for accuracy.
Cheque requests shall be approved for payment by an appropriate official

before cheques shall be written in the Accounts Payable area. Cheques shall
only be paid to a specific payee.
A record of cheques written shall be retained in a Disbursements Journal.

Supporting documentation shall be marked as Paid to avoid duplicate
payments.
Cheque Signers shall be authorized by the Board of Directors at its meeting.
Payroll transfer letter shall be considered a cheque and require two

authorized signatures.
No authorized cheque Signers shall have the responsibility for voucher

preparation, cheque preparation, cash receiving, petty cash, purchasing and
receiving, or time keeping for payroll records.
All non-cheque disbursements, such as wire transfers, shall be approved by

the Chief Financial Officer before they are made.
7.5.3.1.2 Disbursement Requests

All requests for disbursements shall be made on a Disbursement Request Form. The
form shall be completed in its entirety and shall contain the followings:
Detail the purpose, for which the funds shall be used, (i.e. use for materials
to be purchased, reason for meeting and with whom).
Original supporting documentation shall be attached (i.e. detailed invoices

or receipts for all expenses incurred).
Two signatures shall be required, the requester and the approver. The
approver shall be one of the two persons who are listed on the account
agreement form as having signature authority. However, if the cash shall be
made payable to one of those persons, that persons department head
Manager shall sign the form. Their signature shall serve as certification of
the propriety of the requested expenditure to the best of their knowledge

and belief.
If the form is incomplete or some pertinent supporting documentation is missing,
the missing information shall be identified and the request shall be returned to the
sender.
Advances / Disbursement Request Form shall be available with the Accounts and
Finance Department.
The disbursement shall not be made for:
Personal expenses i.e. meals, room, and travel for a spouse or family, or
when not on bona-fide purpose except as per terms of appointment.
Purchase and/or maintenance of equipment located at a home or other offsite location; however the asset can be used at any off-site location in
accordance with the approved LEPARK policies.
Political contributions.
First class airline tickets, except for overseas travel, otherwise shall be preapproved due to justifying circumstances.
7.5.3.1.3 Cash Payment to Employees

The employees should be paid through their bank accounts and cash payments need
to be discouraged at all levels. Cash payment shall be made only in special cases
like advances for travel and other such cases. In order to make cash payments to
employees, LEPARK shall withdraw cash from the bank.
7.5.3.1.4 Travel Reimbursement
In order for these expenses to be reimbursed, a properly executed expense
reimbursement request relating to attending a conference, a copy of the brochure
with a note stating the traveler attended the event, shall be acceptable that shall
be submitted through reimbursement form. All receipts shall be attached to the
form and the proper authorization(s) shall be obtained.
7.5.3.1.5 Cash Disbursements Cancelled / Stop Payment:

1.
Voided Cheques
Cheques shall be cancelled for processing errors. The cheque shall be clearly marked
as voided. All voided cheques shall be kept in a file in numerical order for audit
purposes.
2.
Stop Payments
Stop payment orders shall be issued for cheques that are lost in the mail or for
other valid reasons. Stop payments shall be processed by telephone instruction and
written authorization to the bank by signatories.
7.5.3.1.6 Cash Disbursements Petty Cash
Disbursements of small amounts of cash shall be made from the petty cash fund for
minor expenses. A petty cash voucher shall be completed and signed by the
individual requesting the funds. Vouchers shall be initialed by the cashier and shall
disburse the cash. Periodically, the cashier shall submit a cheque request equal to
the amount of funds disbursed. Please refer to petty cash management policy at
section 7.5.2.
7.5.3.1.7 Cash Disbursements Internal Control
Internal control over disbursements is best maintained when the authorization,
processing, cheque signing, recording, and bank reconciliation functions are clearly
segregated. Persons authorized to approve expenditures shall be identified, and
threshold limits established or double signature requirements defined. Authorized
cheque signers shall never sign blank cheques.
7.5.3.1.8 Review
All disbursements shall be reviewed for accuracy by the Manager Accounts, prior to
presenting the cheques for signature to the authorized signatories.
Accounting Entry:
Following entry shall be passed for recording of cash disbursement:
Account Title
G/Ledger code
Dr. Relevant Head
Relevant code
Cr. Cash/Bank
Relevant code
7.5.4 Bank Account Opening, Closing and Maintenance

The objective of this policy is to set out a mandatory process for opening,
maintaining and closing accounts with banks and other financial institutions and to
ensure that LEPARK maintains adequate control over its funds through the creation
of a formal process for establishing and maintaining LEPARK bank accounts.
This policy shall apply to all accounts that shall be used for the benefit of, or in
connection with, LEPARK program or activity and shall govern all bank accounts
maintained for operating purposes. Any fund received from the donor shall be kept
and maintained in such account as required by the donor in compliance with the
conditions specified accordingly.
7.5.4.1
Responsibility
Responsibility for Establishment of Bank Accounts
The Board of Directors shall have the authority to establish bank accounts in the
name of LEPARK. The Board may delegate this authority to the Managing Director.
Only the Board of Directors shall have the authority to approve the establishment
of bank accounts for LEPARK purposes. No such accounts shall be operated without
the prior written consent of the Board.
The Chief Financial Officer shall ensure compliance with LEPARK policies and
procedures, timely reconciliation of bank accounts, adequate segregation of duties
regarding the administration of the account, monitoring the continued need or
appropriate structure for such accounts, and other oversight requirements as
appropriate.
The Chief Financial Officer shall be accountable to LEPARK Board/ Managing
Director for the proper execution of matters ancillary to the administration of bank
accounts as are necessary for the establishment and maintenance of bank accounts.
7.5.4.1.1 Authorization for Opening and Closing Accounts
All accounts shall be opened with the written authorization of the Managing
Director and final approval of the Board of Directors.
A bank account owned by or containing funds belonging to LEPARK shall only be
opened or maintained with the knowledge and written approval of the Board of
Directors.
Where the need for a separate LEPARK bank account has been identified, a
written request shall be made to the Board.
In
situations
warranting
separate
bank
account,
the
necessary
documentation shall be completed by the Chief Financial Officer and

forwarded to the Managing Director for authorization and final approval by
the Board of Directors.
Upon approval, the Chief Financial Officer shall obtain specimen signatures
for all authorized individuals.
Arrangements for the maintenance of appropriate records and reconciliations

shall be established and approved by the Chief Financial Officer.
Subsequently, if any such bank account becomes unnecessary, a written

request for the closure of bank account shall be submitted in writing to the
Managing Director for authorization and final approval by the Board of
Directors.
After approval, the Chief Financial Officer shall contact the financial
institution to close the account.
Existing bank accounts and related business processes shall be used to facilitate
the deposit of cash receipts and disbursement of payments by LEPARK departments.
The copies of Challan also termed as Deposit Form/ Slips shall be available in the
Accounts and Finance Department for deposit purposes.
7.5.4.1.2 Authorized Signatories for Wire Transfers, Cheques, and Drafts
All authorized signatories for wire transfers, cheques, and drafts drawn on LEPARKs
general operating bank accounts shall be designated by the Board of Directors to
perform this function.
LEPARK shall establish separate bank accounts to fulfill specialized banking or
operating needs for departmental operating purposes subject to the general
approval requirements set forth above. The signatories for such accounts shall be
approved by the Board of Directors.
7.5.4.1.3 Recording Bank Accounts and Related Activity in the General Ledger
Whenever a bank account is opened a separate code is allotted to it in Chart of
Accounts. All LEPARK bank accounts shall be recorded in LEPARKs general ledger
immediately upon the establishment of such accounts. Activity related to LEPARK
bank accounts, including deposits, disbursements, transfers to other accounts, and
other transactions shall generally be recorded in LEPARK official accounting records
within twenty-four (24) hours.
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130
7.5.4.1.4
Accounts
Administration and Oversight
of LEPARK Bank
The Chief Financial Officer shall be responsible for issuing and maintaining policies
and procedures governing the establishment and maintenance of LEPARK bank
accounts. The Chief Financial Officer shall also be responsible for conducting
and/or reviewing the reconciliation of LEPARK bank accounts on a periodic basis.
The Chief Financial Officer shall maintain a current list of all authorized bank
accounts, including the respective bank at which the account is held, account
number, account description, purpose, responsible official, authorized signers,
limitations on cheque amounts, and other relevant information. The Chief Financial
Officer shall also secure and maintain formal documentation which will set forth
the authorization of bank accounts, maintenance of signature cards, and other
relevant correspondence and documentation. All issues regarding banking services
and relations shall be directed to the Chief Financial Officer.
7.5.4.1.5 Authorized Signatories
All bank accounts shall be operated upon by the joint signatures of two persons
from the following signatories:
i)
Upto the amount of Rs. 1,000,000/- in the following combinations:

The Chief Financial Officer and any one of the General Managers Operation,
Revenue and HR.
ii)
Above Rs. 1,000,000/- to Rs. 20,000,000/- in the following combinations:

The Managing Director and Chief Financial Officer. In the absence of any
authority the cheque will be signed by the next higher level authority.
iii)
Above Rs. 20,000,000/- in the following combinations:

The Managing Director with any member of Board of Directors authorized by
the board for this purpose. In case of non-availability of the concerned
authority (due to vacant position/ or in other case) next higher authority will
be responsible for approval and signature.
They shall also have the rights to sign cheques or transfer instructions for
payment of monthly staff salaries for any amount.
7.5.5 Cheque Acceptance
The objective of the policy is to establish procedures and guidelines that shall be
followed to identify the process that shall assist in expediting the collection of
cheques when performing the cheque acceptance activities ensuring that only
those cheques are accepted that are in accordance with the standards mentioned
in this policy.
7.5.5.1
Responsibility
The Chief Financial Officer shall be responsible for the establishing and enforcing
policies and procedures governing the standards developed for acceptance of
cheques and performing periodic reviews of procedures being followed.
The Chief Financial Officer shall be accountable to LEPARK Board/ Managing
Director for the proper execution of matters ancillary in the implementation of the
procedures. The compliance of following procedures shall be ensured:
Cheques shall be made payable to the Lahore Parking Company Ltd.

Third party cheques shall not be acceptable. The following information
must be on each cheque:
Serial No, Account No, bank address
Amount (both written and numerical)
Authorized signature (on the signature line)
Valid date
Cheques accepted for payment may be returned by the bank due to

insufficient funds or some other reason.
The Accounts and Finance
Department shall be notified of the returned cheque, and it shall be the

department's responsibility to collect the funds owed and any bank fees. A
returned cheque shall be charged back to the respective accounting chart
fields into which it was deposited.
LEPARK
shall
accept
personal
cheques
for
payment
until
an
individual presents a returned cheque for payment.
A cheque made payable to LEPARK but drawn on an account other than

that of the person presenting the cheque for payment shall be accepted
with notation of the other persons name and/or identification number.
Receipt procedures shall remain in effect when payment is made by

personal cheque.
Individuals shall be charged a stated amount for the handling of a returned

cheque and no additional cheques shall be accepted from the individual
until the said amount of the returned cheque is paid.
An individual who presents a second returned cheque shall be barred from

paying by cheque in the future.
An individual who makes payment with a forged cheque shall be prosecuted

under appropriate statutes.
The following steps shall be strictly followed when accepting cheques:
Verify the identity of the presenter using photo ID
Verify account of account holder
Avoid accepting cheques from a new account without verification
Ensure that the cheque is made out to LEPARK and is properly dated
and signed
The staff person recording payment information shall record cheque number
as part of the payment record and follow approved cash receipts procedures.
The Accounts and Finance Department shall:
Follow cash receipts procedures for deposit
If cheque is returned, shall make copy of cheque and forward

original to the person that accepted cheque
Record appropriate book keeping data to adjust deposit and income

figures and bank charges
Maintain listing of individuals who have presented returned cheques
7.5.5.1.1 Limitations on Acceptance of Cheques

The Accounts and Finance Department shall not be authorized to return cash to a
payer in the event that the cheque exceeds the amount due to LEPARK. The
Departments shall not be authorized to cash personal cheques for any reason or
amount. The returned cheques shall be sent to LEPARK by the bank. The possible
reasons of returned cheques include non-sufficient funds, stop payments, cheques
without a signature, and cheques drawn on closed or inaccessible accounts. It shall
be the responsibility of the Accounts and Finance Department to collect the
amount of the returned cheque and the service fee from the original payer.
7.5.5.1.2 Foreign Cheques

The Accounts and Finance Department shall receive and accept foreign currency
cheques. The cheques shall be accepted in the form of foreign currency from
countries as upon the discretion of the Board of Directors. The Accounts and
Finance Department shall retain a copy of each foreign currency cheque deposited
to the bank.
The face value of the deposit shall be noted on the monthly deposit report, which
shall include the foreign currency, and the amount of the foreign currency.
The Accounts and Finance Department shall receive credit advices in order to
confirm and/or match activity from LEPARK bank. Documentation shall be
forwarded to the Accounts and Finance Department where the net amount shall be
posted to the monthly deposit report specifically designed for foreign cheques and
the corresponding entries shall be prepared.
The credit advice shall include the following:
currency, name of drawer and endorser,
LEPARK bank account number credited,
face amount of cheque,
exchange rate,
Fee and a copy of the cheque.
7.5.5.1.3 Cheque Encashment
Anyone authorized in this behalf may en-cash cheques at the branch located
in LEPARK area in accordance with the bank's usual policies. LEPARK
payroll and travel / reimbursement cheques may be cashed at this branch as
well.
Cheques shall be signed as refer in policy Authorization and Processing of

Disbursement. The Board of Directors shall authorize all signatories on all
LEPARK accounts.
Payroll transfer letter shall be considered a cheque and shall require two
authorized signatures.
The
Accounts and Finance Department shall prepare cheque from
authorized voucher.
When cashing cheque, three employees shall take the cheque to the bank in
a locked vehicle (one employee shall be an armed security guard).
The following information must be on each cheque:
Name of the account holder, address and phone number

Amount (both written and numerical)
Signature (on the signature line)
Valid date
If the bank returns a personal cheque for insufficient funds or other

reasons, the amount of the returned cheque shall be charged to the payers
account. The payer who presented the cheque shall be immediately
contacted for compensation. Until reimbursement of returned cheques is
made, the privilege of cashing personal cheques shall be revoked. Accounts
charged for returned cheques shall be billed at the middle of each month
and payment shall be due by the 15th of the following month.
7.5.5.1.4 Security
As cheques are forms of cash, therefore, shall be guarded with the same degree of
security and deposited with the same frequency as currency. The Accounts and
Finance Department shall be responsible for secure and reliable transportation of
the department deposits via armored car services, LEPARK security escort or
courier, or in-person delivery to deliver the deposits to the Bank.
7.5.5.1.5 Training
The employees shall be properly trained to ensure strict compliance of cheque
acceptance policy as it shall have an indirect impact on losses from bad/bounced
cheques since they would be trained and even encouraged to reject suspicious or
incorrect cheques.
7.5.5.1.6 Accounting Entry

Following entry shall be passed on the receipt of cheque:
Account Title
G/Ledger code Dr.
Bank
Relevant code
Cr. Relevant Head
Relevant code
7.5.6 Bank Reconciliation Statement

The objective of this policy is:
To provide guidelines for the development of LEPARKs bank reconciliation

procedures.
To ensure that only bona fide bank transactions are recorded in LEPARKs
general ledger.
To ensure that LEPARK
maintains adequate control over the process of
comparing the accounting records to the banks records in order to resolve

any possible discrepancies which may arise due to the timing differences
between when data is entered in the bank systems and when data is
entered in LEPARK system, or due to any error.
7.5.6.1
Responsibility
Responsibility for Bank Reconciliation Statement
The Chief Financial Officer shall ensure compliance with LEPARK policies and
procedures, timely reconciliation of bank accounts, adequate segregation of duties
regarding the administration of the account, monitoring the continued need or
appropriate structure for such accounts, and other oversight requirements as
appropriate.
Bank reconciliations shall be prepared by the Senior Manager Finance reviewed by
the Chief Financial Officer. The Senior Manager Finance shall be accountable to
The Chief Financial Officer shall be accountable to the Managing Director for the
proper execution of all matters ancillary to the administration and monitoring of
bank accounts.
7.5.6.1.1 Guidelines for bank reconciliations
Bank accounts shall be reconciled monthly by the Senior Manager Finance.

Bank statements shall be received unopened from banks for all accounts.
The bank accounts which shall be used more frequently can be reconciled
on daily basis.
The concerned Accounts Staff shall compare dates and amounts of daily
deposits on bank statements to the cash receipts journal as well as bank
transfers and any items rejected by the bank due to insufficient funds, etc.
Reconciliation procedures shall include the following steps:
Compare the cash receipts to the receipts shown on the bank

statement (the credits on the bank statement); for each receipt that
agrees, mark the item in both the cash book and the bank statement.
Compare the cash payment to the payments shown on the bank

statement (the debits on the bank statement); for each payment that
agrees, mark the item in both the cashbook and the bank statement.
Any un-marked items on the bank statement (other than rare errors
made by the bank) shall be items that should have been entered into
the cash books, but have been omitted for some reason; these
should be entered into the cashbook and then the amended balance
on the cashbook can be found. To find the correct cashbook balance
a ledger account shall be used for the bank with the original
cashbook balance shown as the brought forward balance and any
additional payments shown as credits and receipts as debits.
Finally, un-marked items in the cash book shall be the timing

differences; un-presented cheques, these shall be used to reconcile
the bank statement closing balance to the corrected cash book
closing balance.
Cheques outstanding for six months shall be investigated by the Senior

Manager Finance.
Upon completion of the reconciliation process, the Senior Manager Finance

shall review the statements and approve adjustments to cash accounts.
7.5.6.1.2 Report Preparation

Monthly reports shall be prepared to document the reconciliation of each bank
account and the review of entries in the financial records. Reconciliation reports
shall be completed and reviewed in a timely manner after the bank statements
have been received. The persons preparing and reviewing the reconciliation report
shall date and sign the report indicating the date the reconciliation report was
completed and the date on which review was made.
Reconciliation report shall include:
Verification that the entries (i.e. deposits, wire transfers, withdrawals,

expenditures and revenue) on bank statements and financial reports are
accurate and correspond with LEPARK financial records.
Identification of all reconciling items and the separation of those into

timing differences and differences requiring adjustments to clear either by
the bank or with an adjusting journal entry in the financial records.
Completion, review and approval of the reconciliation.
Substantiation of the preparation and timely transmittal of requests for

corrections.
Documented requests for bank adjustments shall be forwarded to the person

concerned. Journal entries developed for clearing other differences shall be
completed and submitted to the Senior Manager Finance for review and after
approval by the Senior Manager Finance the data shall be input appropriately into the
system.
7.5.6.1.3 Comparing the Bank Statement to the Cash book
When all of the receipts for a period are written in the cash receipts book and all
of the cheque payments and standing orders are entered in the cash payments
book, it shall be necessary to carry out any further cheques possible on the cash
book. The most obvious cheque shall be to compare the entries in the cash receipts
and cash payments book for the period, to the entries on the bank statement.
7.5.6.1.4 Bank Reconciliation Record
Reconciliation reports shall be retained at the appropriate place and made
available to internal auditors upon request. Reports shall be retained in accordance
with records retention guidelines.
7.5.6.1.5 Management Review and Approval
The reconciliation printouts shall be filed in a separate folder. Copies of the bank
reconciliation shall be provided to the Managing Director for further review when
demanded.
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140
8.
ACCOUNTING FOR LIABILITIES

8.1
ACCOUNTS PAYABLES
The objective is to establish guidelines regarding the accountability of transactions

related to trade payables ensuring that:
Disbursements are properly authorized.
Invoices are processed in a timely manner.
Vendor credit terms and operating cash are managed for maximum benefits.
The Accounts and Finance Department is responsible for managing the trade
payable accounts, overseeing payments to vendors for goods and services required
by LEPARK and processing refunds and reimbursements to vendors. The Chief
Financial Officer has overall responsibility for the administration of accounts
payable function.
8.1.1.1
Recording of Accounts Payable
All valid accounts payable transactions, properly supported with the required
documentation, are recorded as accounts payable in a timely manner. Information
is entered into the system from approved invoices or disbursement vouchers with
appropriate documentation attached. Only original invoices are processed for
payment unless duplicated copies have been verified as unpaid by researching the
vendor records. No vendor statements are processed for payment.
8.1.1.2
Accounts Payable Cut-Off
All vendor invoices that are received, approved and supported with proper
documentation by the tenth day of the following month shall be recorded as
accounts payable as of the end of the immediately preceding month if the invoice
pertains to goods or services delivered by month-end. For programs that have a
reporting cutoff earlier than the tenth, invoices received past the tenth may be
recorded in the month they are received.
Cutoff procedures are intended to ascertain that all transactions have been
recorded in the proper period. Procedures are placed to assure that transactions
related to trade payables are recorded in the appropriate period.
The individual control accounts of trade payables are reconciled with the source
documents and reviewed to ensure that they are properly accounted for in the
correct accounts.
8.1.1.3
Authorization
Documents presented for approval and payment of vendor invoices are reviewed
and authorized by an independent person at an appropriate authority level to
ensure that transactions are approved without any influence and to avoid the
appearance of a conflict.
8.1.1.4
Establishment of Control Devices
The Accounts and Finance Department staff establishes control of invoices as soon
as they are received. Vendors are instructed to mail all invoices directly to the
Accounts and Finance Department. Upon receipt, each invoice is stamped and
delivered to the payable desk. Any invoice out of the control of the accounting
staff is copied and kept in an accounts payable follow-up file.
8.1.1.5
Ledger
Reconciliation of Accounts Payable Subsidiary Ledger to General
At the end of each monthly accounting period, the total amount due to vendors is
reconciled with the accounts payable general ledger account. All differences are
investigated and adjustments are made as necessary. The reconciliation and the
results of the investigation of differences are reviewed by accounting staff and
approved by the Chief Financial Officer.
Also on a monthly basis, the accounting staff performs the following procedures:
Checks all statements received for unprocessed invoices.
Checks the purchase order file for open purchase orders more than 60 days
old and follow up.
8.1.1.6
Vouchers Processing
Prior to any accounts payable being submitted for payment, following documents
are assembled:
Vendor invoice (or employee expense report).
Packing slip (where appropriate).
Purchase Request or Purchase order as required by procurement policies.
Any other supporting documentation deemed appropriate.
The following procedures are applied to each bunch of documents by the Accounts
and Finance Department staff:
Checking of the mathematical accuracy of the vendor invoice.
Comparing the nature, quantity and prices of all items ordered per the
vendor invoice to the purchase order/request and packing slip.
Documenting the general ledger distribution, using LEPARKs current chart

of accounts.
Confirming the review and approval of the Chief Financial Officer associated
with the goods or services purchased.
8.1.1.7
Payment of Purchase Order Invoices
Accounts of creditors are adjusted at the time of payment for the purchase of
goods or services and the payment is based on the supplier's invoice(s), which is
referenced to the purchase order number authorizing the purchase. Payment to the
supplier is made when there is reasonable assurance that the commodity or service
has been received, is as specified on the order, and is inacceptable condition. The
department has the responsibility to ensure goods and services ordered have been
received prior to payment and related accounts properly adjusted.
8.1.1.8
Amendments to Invoices and Credit Adjustment Notes
If an examination of the invoice indicates some discrepancy, this is clarified with

the vendor immediately. In these situations, the account payable function obtains a
credit adjustment note from the supplier. The account payable function holds the
invoice until the credit adjustment note is received from the supplier. Furthermore,
if the original invoice is altered, the supplier may also issue a credit adjustment
note. When an original invoice is altered and the supplier also sends a credit
adjustment note, then adjustment of credit note shall be recorded accordingly.
8.2
OTHER LIABILITIES
The objective is to establish fundamental guidelines for compliance with the

provisions of Companies Ordinance 1984 for properly accounting and reporting
liabilities other than accounts payables. Major focus is the achievement of the
following:
All liabilities are measured and recorded as accurately as possible, given the
circumstances under which the liability was created.
Liabilities recorded in the financial statements reflect invoices received and

accruals for any costs incurred.
Accounts are maintained on an accrual basis. Costs and revenues are

identified and recorded in the period in which they are incurred, even if
receipt of the revenue or payment for the expenditure occurs in a
subsequent accounting period. A balance is maintained between the effort
required to measure accrued costs precisely and the added value of such
precision.
The Accounts and Finance Department is responsible for appropriately recording
and accounting for transactions related to other liabilities. The Chief Financial
Officer is responsible for monitoring proper documentation and reconciling the
liability accrual accounts and has overall responsibility for the administration of
Accounts and Finance Department.
8.2.1.1
Basis of Accounting
Liabilities are reported using the accrual basis of accounting.

The accrual basis of accounting records the effects of a transaction and other
events in the periods when they occur instead of only in the periods when cash is
received or paid. Accordingly, accrual accounting considers not only cash
transactions but also non cash transactions and exchanges of goods and services.
8.2.1.2
Accrual Process
To record a manual accrual in the system, the following information should be

available:
Accrual amount
Beginning and ending date of the accrual period
Basis and justification for determining amount accrued
Purchase order/subcontract number
Resource category
8.2.1.3
Recording
Cutoff procedures are intended to ascertain that all transactions have been
recorded in the proper period. Procedures are placed to assure that transactions
are recorded in the appropriate period to which they relate. In general, the sooner
the accounts are closed after year end, the greater the likelihood that there will
be unrecorded invoices.
The accounts are reconciled with the source documents and reviewed to ensure
that they are properly accounted for in the correct accounts.
8.2.1.4
Reconciliation with the Subsidiary Ledgers
The accrued expenses accounts are reconciled with the relevant subsidiary ledger
and any discrepancy is examined and resolved instantly.
8.2.1.5
Authorization
Documents presented for approval are reviewed and authorized by an independent

person at an appropriate authority level to ensure that transactions are approved
without any influence and to avoid the appearance of any conflict.
9.
ACCOUNTING FOR REVENUE

The objective of this policy is to prescribe the guidance for the recognition and
measurement of Revenue, establish the different classes of revenue and determine
the accounting procedure for each class of revenue. The revenue function is
composed of those business processes utilized to control these amounts to ensure
that the money due to LEPARK shall be received, recorded, and properly applied.
This Revenue Recognition Policy has been developed by LEPARK focusing on the
following categories of revenue:
Parking Fees
Contract out Project(s)
Government Projects
Event Parking
Valet Parking
Special services
Advertisements
Monthly fees
Parking collection
Tender fee
Fines
Sale of wreckage
Others
9.1
RESPONSIBILITY
The Senior Manager Finance shall be responsible for revenue recognition and
related matters and shall be accountable to the Chief Financial Officer.
The Chief Financial Officer shall be responsible for providing guidance and
assistance regarding revenue principles and monitor compliance with the
requirements set forth in this policy and shall be accountable to the Managing
Director.
Accounting Entries:
Account Title
G//Ledger Code
1. Sale of Lender Documents:

Dr. Cash
Relevant Code
Cr. Tender Fee
Relevant Code
2. Deposit of cash at bank

Dr. Bank Account
Relevant Code
Cr. Cash Account
Relevant Code
3. On Receipt of Monthly fee

Dr. Bank
Relevant Code
Cr. Monthly fee
Relevant Code
4. On Receipt of Parking collection fee

Dr. Bank
Relevant Code
Cr. Parking Collection fee
Relevant Code
10.
ACCOUNTING FOR EXPENSES

10.1
PAYROLL EXPENSES
Salaries, wages, payroll taxes and associated benefits constitute a significant

portion of the overall expenditures, and are subject to regulations imposed by
government. LEPARK shall establish compensation structures, systems and processes
to:
Promote compliance with all applicable regulations.
Describe the standards of accounting practices and procedures for payroll

expenses and to manage the payroll system ensuring that the payroll
expenses shall be as per:
Compensation policy
Appointment letters and
Approved budgets
Ensure that payroll expenses shall be recorded and classified in accordance

with the established policies and procedures.
Ensure that the provisions of Companies Ordinance 1984 shall be followed in

recording and appropriate classification of payroll expenses.
Ensure that employees are paid timely and are provided with respective
information accurately.
This policy describes the payroll process by employment classification, including

the administration of appointments and salaries, timekeeping and accrual
maintenance, payroll schedules and payment methods. It includes the policy for
benefit as well as payroll deductions. It applies to payroll system by describing the
administration of payroll process governed by LEPARK.
10.1.1
Responsibility
Responsibility for Payroll
The responsible office shall be Accounts and Finance Department and responsible
official shall be Chief Financial Officer.
Chief Financial Officer shall ensure that all payroll expenses are reasonable,
allowable and allocable to budgetary units.
The Manager Accounts shall verify the monthly payroll which will be reviewed by
the Senior Manager Finance. The Senior Manager Finance shall be accountable to
The following important procedures related to the payroll function at LEPARK shall
be closely adhered to:
10.1.1.1 Payroll preparation
The payroll process is generally considered to begin from HR Department which hire
new staff, adjust salaries and wages, establish payroll deductions, promote, transfer
& terminate employees through retirement or otherwise. The HR Department is
also repository for all employment history records. A register shall be maintained for
recording attendance, absence & tardiness on a daily basis as a timekeeping. At the
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150
end of each month Accounts and Finance Department shall prepare payroll based on
data obtained from HR Department and timekeeping register.
10.1.1.2 Payroll Administration
LEPARK shall operate on a monthly payroll. A personnel file shall be established and
maintained for all employees with current documentation by the HR Department.
The following forms, documents and information shall be obtained and included in
the personnel files of all new employees:
LEPARK employment application.
Applicant references (work & personal).
Interview questions and notes.
Starting date and scheduled hours.
Job title and starting salary.
Authorization for direct deposit of pay-cheque.
Signed completed processing form.
The salary payment shall be authorized and approved by the Chief Financial
Officer.
10.1.1.3 Changes in Payroll Data
The following payroll procedures shall be followed to the greatest extent possible:
Changes to payroll master file data (rates of pay, adding employees, deleting
employees, etc.) shall be performed by someone other than the person who
processes payroll.
Changes are documented in writing and review of all changes to master

payroll data shall be made by an independent person like Chief Financial
Officer or GM HR & Admin.
Payroll shall be processed by an individual who does not have the ability to
make journal entries in the general ledger.
Timely review of payroll shall be made by someone independent from payroll

processing and employee master file data input like Chief Financial Officer or
GM HR & Admin.
All of the following changes in payroll data shall be authorized in writing:
New hires
Terminations
Changes in salaries and pay rates
Voluntary payroll deductions
Changes in income tax withholding status
Court-ordered payroll deductions
Periodically, adjustments shall be made to an employees payroll for various

reasons (salary and / or position changes during a pay period, employees
starting or terminating in the middle of the pay period, etc.) Appropriate
adjustments shall be made by the Accounts and Finance Department.
Documentation of all changes in payroll data shall be maintained in each

employees personnel file kept in the HR Department. A copy of the employee
processing form and documentation showing changes to an employees payroll
record shall be forwarded and kept within the Accounts and Finance
Departments monthly payroll maintenance records.
10.1.1.4 Payroll Deductions and Reductions
The Accounts and Finance Department shall process mandatory deductions from an
employees pay-cheque in
compliance with governmental regulations, and
voluntary deductions within its scope in accordance with employee election.

Voluntary deductions shall be made upon evidence of employees authorization for
such deductions. The Accounts and Finance Department shall ensure the timely
disbursement of amounts withheld from employees pay-cheques to government in
accordance with statutory regulations.
Voluntary payroll deductions shall be authorized in writing by the individual
employee. Submission to the HR Department shall be the responsibility of the
individual employee for voluntary deductions. The individual employee should
check his or her payroll payments to verify such deductions have been
implemented and if the deductions have not been implemented, they should
immediately notify the HR Department.
10.1.1.5 Payroll Taxes
The Accounts and Finance Department shall be responsible for ensuring all required
tax forms have been properly completed and submitted, and that all required taxes
have been withheld and paid.
10.1.1.6 Personnel Activity Reports
LEPARK shall follow the guidelines as well as requirements in specific grants.
Therefore, salaries and wages charged to grants are supported as follows:
Charges will be based on documented payrolls approved by responsible

officials.
Every staff member whose compensation is charged, in whole or in part,

directly or indirectly to Provincial awards will complete activity reports that
account for the total activity for which the employee is compensated.
The reports will reflect an after-the-fact determination of the actual activity

of each employee. Budget estimates will not be used as support for charges to
awards.
The reports must be signed by the individual employee or by a responsible

Manager who has first-hand knowledge of the activities performed by the
employee.
The reports will be prepared on the same basis as the pay periods.
10.1.1.7 Review of Payroll

Upon production of all payroll reports and cheques, Senior Manager Finance shall
review payroll prior to its distribution to employees and shall sign the payroll
register, indicating approval of the payroll.
10.1.1.8 Separation of Functional Responsibilities
The procedure of LEPARK related to the processing of payrolls at the department
level shall require that:
Individuals responsible for the review of payroll distribution registers should

not be involved in the preparation or approval of time cards;
Individuals involved in the preparation or approval of time cards should not be

involved in the distribution of payroll cheques to employees;
The departmental administrator checks each time card for completeness

before forwarding the form to payroll.
10.1.1.9 Treatment of Payroll Information

All payroll and related information shall be treated as highly confidential;
therefore this information shall only be released to employees who need the
information to perform their job responsibilities. All documents and electronic
records related to payroll shall be handled with confidentiality by all who shall
have responsibility for any aspect of the payroll function.
10.1.1.10 Special Payments to Employees

All special payments shall be approved by the Chief Financial Officer in advance.
Any payment request, which shall not have the appropriate approval, shall be
returned to the department.
Departments considering making any special payments to employees other than
those specifically covered under benefit program, should contact the Accounts and
Finance Department before making the payment to determine if the payment will
be considered taxable income and / or are subject to withholding tax.
10.1.1.11 Cash Payment Procedure
The essential steps of the process are following:
Employees earning less than Rs. 15,000 per month maybe paid in cash.
The Accounts and Finance Department shall prepare list of cash paid
employees with particulars such as name, amount, and signature, on monthly
basis and shall prepare a voucher and cheque. The Senior Manager Finance
shall review the list of employees and shall return the cheque to concerned
Accounts Staff after getting it signed by two authorized signatories.
When LEPARK shall withdraw cash; three employees shall take the cheques to
the bank in a locked vehicle and one of them shall be an armed security
guard. Second person in Accounts and Finance Department shall count money
and shall compare the total to the cash paid list.
Cash paid employees shall come to Accounts and Finance Department with
their supervisor for their pay and to sign the list. The Accounts and Finance
Department shall prepare a journal voucher and shall give it to the Senior
Manager Finance who shall review it, sign it, and send it for posting.
10.1.1.12 Payment through Bank

Making payment to employees through bank transfer shall comprise of the following
steps:
The Accounts and Finance Department shall prepare monthly salary sheet
with gross pay, and deductions; signed by the Senior Manager Finance, and
Manager HR.
The Accounts and Finance Department shall give the bank letter for transfer of
funds to the Senior Manager Finance who shall check it and get two authorized
signatures.
The Accounts and Finance Department shall send letter to bank with
particulars such as name, bank account number, net amount of pay, directing
the bank to transfer funds from LEPARK account.
A pay slip shall be prepared for all employees with this information; bank of
deposit, account number, gross pay for the month, salary deductions, like
provident fund, income taxes, house rent, license fee, water, electricity, staff
club, advances, loan against provident fund, interest, and net pay.
10.1.1.13 Filing
The Senior Manager Finance shall file the following statements:
Quarterly withholding tax statement
Annual withholding tax Statement
The employees shall receive their salary and tax deduction certificate
annually.
10.1.1.14 Reconciliations
Monthly reconciliation shall be prepared using the following procedure:
The amount paid to employees who left employment during the month shall be
deducted from the amount paid to employees during the last month and amount
paid to new employees hired during the month shall be added.
The amount of pay advances and loans secured by the provident fund shall be
reconciled with the general ledger account on a monthly basis.
Accounting Entries:
Salary Expense
1. When Salary expense is accrued

Account Title
G/Ledger code
Dr. Salaries
Cr. Salaries payable
Relevant Code
Relevant Code
Cr. Income Tax Deducted at Source
Relevant Code
Cr. Provident Fund Payable
Relevant Code
Cr. Advance against Salaries
Relevant Code
Cr. EOBI Contributions
Relevant Code
2. When Salary is paid

Account Title
G/Ledger code
Dr. Salaries payable
Relevant Code
Cr. Cash / Bank
Relevant Code
Provident Fund
1. When provident fund is accrued
Account Title
G/Ledger code
Dr. P. Fund
Relevant Code
Cr. P. Fund payable
Relevant Code
2. When provident fund is paid

Account Title
G/Ledger code
Dr. P. Fund payable
Relevant Code
Cr. Cash / Bank
Relevant Code
EOBI
1. When EOBI is accrued
Account Title
G/Ledger code
Dr. EOBI
Relevant Code
Cr. EOBI payable
Relevant Code
2. When EOBI is paid

Account Title
G/Ledger code
Dr. EOBI payable
Relevant Code
Cr. Cash / Bank
Relevant Code
Social Security
1. When social security is accrued
Account Title
G/Ledger code
Dr. Social Security
Relevant Code
Cr. Social Security payable
Relevant Code
2. When social security is paid

Account Title
G/Ledger code
Dr. Social Security payable
Relevant Code
Cr. Cash / Bank
Relevant Code
Other Employees Benefits

1. When other employee benefits are accrued
Account Title
G/Ledger code
Dr. Other Employee benefits
Relevant Code
Cr. G. Insurance payable
Relevant Code
Cr. Medical Fund payable
Relevant Code
Cr. B Fund payable
Relevant Code
2. When other employee benefits are paid

Account Title
G/Ledger code
Dr. G. Insurance payable
Relevant Code
Dr. Medical Fund payable
Relevant Code
Dr. B Fund payable
Relevant Code
Cr. Cash / Bank
Relevant Code
10.2
OTHER THAN PAYROLL EXPENSES
The objective is to establish practices consistent and in compliance with the

provisions of Companies Ordinance 1984 ensuring that costs are properly authorized
and approved and allocated to accounts in a manner that is an accurate reflection
of the expenses incurred. LEPARK shall establish expense structures, systems and
processes to:
Promote compliance with all applicable regulations.
Describe the standards of accounting practices and to ensure that the

expenses shall be
Reasonable.
Allowable.
Allocable to budget center to which it relate.
Ensure that the expenses shall be recorded and classified in accordance with
the established policies and procedures.
Ensure that provisions of Companies Ordinance 1984 shall be followed in

recording and appropriate classification of expenses.
The Accounts and Finance Department shall be responsible for performing
accounting functions relevant to expenses and the Senior Manager Finance shall be
the responsible official accountable to the Chief Financial Officer.
10.2.2
Procedure
10.2.2.1 Recording
Cut-off procedures are intended to ascertain that all transactions have been
recorded in the appropriate period.
The expenses shall be reconciled with the source documents and reviewed to
ensure that they are properly accounted for.
10.2.2.2 Methods for Determining Amounts
The amount of accrued expenses shall be determined using the methods of specific
identification. The methods used to arrive at the best estimate are consistently
applied and based on supportable documentation. Expenses are recorded using
accrual basis and by following matching and prudence concept of accounting. The
methodology, source of information, computations, records of discussion, and
assumptions shall be documented and maintained for future reference, oversight,
or audits.
10.2.2.3 Reimbursement
The employees shall be reimbursed with the actual amount of expenses incurred
necessarily in the performance of the duties of their employment. In general,
reimbursement will be made only on the production of receipts or invoices.
Page
160
10.2.2.4 Authorization and Approval

Documents presented for approval and payment of vendor invoices shall be
reviewed and authorized by an independent person at an appropriate authority
level (Chief Financial Officer or the relevant GM) to ensure that transactions are
approved without any influence and to avoid the appearance of a conflict.
Authorization confirms
requirements:
adherence
to
the
following
general
Employees cannot authorize transactions for their own business

reimbursement.
Documentation of the authorization:
Facsimile signatures are acceptable in circumstances when impractical

to obtain in person.
Originals. Original
or
authenticated
electronic
signatures
preferred.
Examples of the various forms of authorization may include:

o Signed vouchers.
o Signed travel reimbursement requests.
o Signed work orders or service requests.
o Electronic signature on a requisition or receiver.
o Email authorizing a specific transaction.
Accounting Entries
1.
When expenses are accrued
Account Title
G/Ledger code
Dr. Expense
Relevant code
Cr. Accrued Expense
Relevant code
2.
When Expense is paid
are
Account Title
G/Ledger code
Dr. Accrued Expense
Relevant code
Cr. Cash / Bank
Relevant code
10.3
PAYMENTS UNDER THE CONTRACTS FOR CIVIL WORKS
10.3.1 Objective
To ensure that payments are made in accordance with terms of contract and for
work actually done or goods satisfactorily supplied.
10.3.2 Advance Payments
Advance payments to be made on signing the contract (for mobilization and similar
expenses) shall be related to the cost of goods, works or services covered by the
contract. These shall not be more than 10% of the total contract price. The advance
payment whether for mobilization or other purpose shall be released only after
furnishing a bank guarantee for the specified amount and from a bank of good
repute. The bank guarantee shall always be verified.
10.3.3 Progress Payments
Progress payments shall be made in accordance with the terms of the contract and
after compliance with the conditions laid down in the contract for such payments.
The application for payment submitted by the contractor shall be reviewed by a
designated official to verify that:
Payment is due and in accordance with the terms of the contract
All conditions laid down in the contract have been complied with
All the details of work done or goods supplied have been recorded
Rates are as agreed
Quantity and quality has been verified technical person.
10.3.4 Retention Moneys

The retention moneys shall be deposited in a separate bank account. These shall
become payable to the contractor or supplier upon successful completion of the

contract, at the end of the warranty period or on another specified date determined
in accordance with normal practice.
In the event of default or non-performance under a contract, the project entity shall
use funds from retention money account to complete the work or to repair defects
during the maintenance or warranty period.
10.3.5 Currency of Payment
Payments under each contract shall normally be made in the currency or currencies
in which the price has been stated in the successful bid. However, if the bidder has
shown the percentage of payments to be made in other currencies, the exchange
rates for a reference date specified in the contract shall be used to maintain the
value of the foreign currency portions of the contract price - without loss or gain.
10.3.6 Payments
All payments under the contract except refund of retention moneys shall be net of
retention money as specified in the contract and taxes applicable at the time of
payment. All payments shall be made by crossed cheques.
Accounting Entries
Account Title
1.
G/Ledger code
Accounting for Capital Work In Progress
Dr. Capital Work In Progress
Relevant code
Cr. Payable to Contractor
Relevant code
Cr. Retention Money payable
Relevant code
Cr. Tax deducted at source payable
Relevant code
Cr. Mobilization Advance

2.
Relevant code
Accounting for Advance for Mobilization
Dr. Mobilization Advance
Relevant code
Cr. Bank
Relevant code
11.
INVESTMENT ACCOUNTING FUNCTION

The surplus funds available with LEPARK should be invested strictly in accordance
with the parameters approved by the Board of Director (if any). The classification of
investments in the financial statements shall be made as follows:
11.1
CLASSIFICATION OF INVESTMENTS
LEPARK is required to classify its entire investment portfolio

into:
Held to Maturity
Available for Sale
Held for Trading
11.1.1 Held to maturity securities

These securities are acquired with the intention and ability to hold those up to
maturity.
11.1.2 Available for sale securities
The securities which do not fall within the above category will be classified under
this category.
LEPARK shall decide the category of the investment at the time of acquisition and
the decision taken to that effect shall be recorded in writing on the investment
proposals. LEPARK will be free to determine the extent of holding under the above
categories taking into consideration various aspects such as trading strategies,
intention of acquisition of securities, capital position, expertise available to manage
investment portfolio, and the risk management capabilities, etc.
LEPARK should not resort to frequent shifting of securities from one category to
another to take undue advantage of fluctuation in the market/ interest rates. Under
exceptional circumstances, shifting from one category to another will be allowed
subject to the following conditions:
Shifting of investments to/from Held to Maturity category will be allowed

once a year only with the approval of the Board of Directors within two
months of the commencement of the accounting year. Any further shifting
to/from this category will not be allowed during the remaining part of that
accounting year.
Shifting to/from Available for Sale category will be allowed with the
approval of the Board subject to the condition that the reasons for such
shifting will be recorded in writing.
Shifting of investment from Held for Trading category to Available for

Sale or Held to Maturity categories would generally not be allowed. It
would be permitted under exceptional circumstances like not being able to
sell the securities within the prescribed period of 90 days due to tight
liquidity position in the market or extreme market volatility with the
approval of the Board.
Shifting of securities from one category to another shall be done in accordance with
the above guidelines and at the lower of the market value or the acquisition
cost/book value, and the diminution in value, if any, on such transfer shall be fully
provided for.
11.1.3 Held for trading securities
These securities are acquired with the intention to trade by taking advantage of
short-term market/interest rate movements. Such securities are to be sold within 90
days from the date of their classification as Held for Trading under normal
circumstances.
11.2
VALUATION OF INVESTMENT
The Company will revalue their security holdings (both balance sheet as well as offbalance sheet items) on weekly basis and properly reflected in their books of
accounts.
The Held to maturity Securities shall be carried at amortized cost and shall not be
required to be revalued. This will, however, be subject to the condition that once a
security is classified as Held to Maturity no subsequent reclassification/shifting to

Available for Sale or Held for Trading categories will be
permissible
11.3
REVALUATION SURPLUS/DEFICIT
The surplus/deficit arising as a result of revaluation of Held for Trading securities

shall be taken to the Income and Expenditure Account.
Any surplus/deficit arising on revaluation of securities will not be taken to Income
and Expenditure Account except when actually realized and instead will be kept in a
separate account called Surplus/Deficit on Revaluation of Securities which will be
shown below equity and its breakup in
Government Securities.
Quoted Shares.
Other Securities may be given in the notes to the financial

statements.
Any impairment in the value of Available for sale or Held to Maturity securities
will be provided for by charging it to the Income and Expenditure Account.
The measurement of surplus/deficit shall be done on portfolio basis for each of the
above three categories separately.
12.
BUDGETING
The objective of this policy is to ensure that an annual budget is properly prepared
and approved by the Board of Directors and it describes the annual operating
budget policies & processes that shall be used at LEPARK to create a more efficient
and open budget process.
The budget process should:
Protect and assure the quality of our goals and services
Provide clear and consistent priorities for funding
Develop and identify initial cost center level base budget within current
funding levels and mission expectations using a consistent format
Provide a responsible LEPARK contingency reserve
Ensure
that
LEPARK
mission
and
vision
is
being
achieved within
available resources.
12.1
RESPONSIBILITY
All heads of departments shall be responsible for the operation and
management of this policy.
The Board of Directors will have a duty to govern and approve LEPARK annual
budget.
The Managing Director or his designee has delegated authority to maximize

the use of resources, through the achievement of economy, efficiency and
effectiveness and for ensuring that financial considerations are taken into
account, at all stages of the decision-making process.
The Managing Director or his designee shall carry delegated authority to

ensure that, at all times, they shall endeavor to secure the best value for
expenditure incurred.
Internal Audit department shall be responsible for monitoring of the budget

and until there is no such department Chief Financial Officer shall perform
such function.
The Budget Planning Committee shall be responsible for preparing and

reviewing the annual budget and it shall be approved by Board of Directors.
12.1.1
Budget Segments
12.1.1.1 Budgeting by Operational Unit

All the operational units, departments are required to prepare annual budgets for
income & expenditure for each operational unit involved.
12.1.1.2 Budgeting by Fund
Along with budgeting by operational units, departments are required to budget by
source of funds.
The main groups of funds include:
Operating.
Plant & Equipment Fund.
CDGL Grant.
12.1.2
Overview of the Budgeting Process
12.1.2.1 Financial Planning and Analysis

Budget Planning Committee shall:
Develop LEPARKs operating budget.
Monitor and assist in controlling the budget.
Perform and disseminate analysis and provide informational resources.
Respond to internal and external requests for information and advise

administrative office in interpreting and developing responses to data
requests.
The Budget Planning Committee and the head of internal audit shall engage in
monitoring of the budget. Any irregularities or material variances to budget shall
be noted and appropriate individuals should be informed and corrective action shall
be taken with the approval of the Managing Director.
12.1.2.2 Developing the Budget
The budget initialization process shall be completed before the development

of revenue and expenditure estimates are initiated (requesting types of
reports, and all accounts to be used). The budget initiation should take place
in the month of April.
The Budget Planning Committee shall meet with the staff of Information
Technology and Accounts to discuss the type(s) of reports that will be
standard for the departments to prepare detail budgets, as well as system
access to inquire/ enter data into the budget.
Budget Planning Committee shall download historical and year to date actual
data into working document to be included in budget development packets
and will be distributed to each Department Head and/or budget designee.
The budget packets should contain information about the budgeting process,
the standard request forms to be used, and the budget guidelines to be
employed.
12.1.2.3 Allocation of Budget
Funds shall be allocated based upon specific objectives agreed upon for a
given fiscal year. Funds may be allocated to the departments for specific
expenditure categories (personal services, current expenses, and capital).
However, policies formulated from time to time and provisions herein may
affect the use of funds within the total allocation.
The Budget Planning Committee shall have discretion in the allocation of

funds in accordance with the policies set forth in this document.
A budget reserve shall budgeted annually by the Board of Directors.
The capital budget shall be submitted as part of the annual operating budget.
Physical facilities projects shall not be reduced or increased without the

Board of Directors approval.
The Managing Director shall make a determination of the initial funding
source regarding responsibility for covering overdrafts, regardless of the

initial funding source.
Balances remaining after fund accounts have closed shall be lapsed to
LEPARKs central clearing account, depending upon the original funding

source.
The Managing Director shall have the option of reallocating balances to other
approved projects or equipment items.
12.1.2.4 Estimating Revenues

Revenue estimates shall be made annually and based on objective standards or
sources.
The annual operating budget should also provide for contingencies.
12.1.2.5 Estimating Expenditures
All budget requests made by department heads shall be fully documented and
justified, and adhere to the budget guidelines.
Each department shall prepare an expenditure draft budget for each department
and/or unit.
Budget Planning Committee must review all worksheets/ spreadsheets to ensure all
information required for budget development was received.
Departments shall be responsible for entering the expenditure draft budgets into
the computerized system.
Departments shall be responsible for final review and approval of departmental
final draft before submission to the Budget Planning Committee.
Page
170
12.1.2.6 Budget Hearings
Budget hearings shall be conducted by the Budget Planning Committee.
The Departmental Heads must comply with the directives and expenditures
request proposals of the Budget Planning Committee.
The Budget Planning Committee shall be responsible for evaluating each

departments budget and making any recommendations necessary to ensure
that budgeted
revenues
equal
budgeted
expenditures
and
that
all
expenditures made are the type and amount to further LEPARKs mission and
Strategic Plan.
The Budget Planning Committee shall direct the Accounts and Finance
Department to notify each department in writing as to the date, time, and
place of the budget hearings.
As scheduled, the Departmental Heads shall appear before the Budget

Planning Committee to support the budget request.
Departmental Heads must submit the supporting documentation to the Budget

Planning Committee.
Each Department must revise the draft budget to ensure it meets the
recommendation as addressed by the Budget Planning Committee.
Department must communicate Budget Planning Committee changes to the

departments to ensure complete recognition of changes.
Departmental Heads shall meet with budget designees to discuss changes as

presented by the Budget Planning Committee.
Departmental Heads shall ensure changes are made in the budget

development system.
Departmental Heads shall submit budget to the Budget Planning Committee

for distribution and approval of the Managing Director.
Budget Planning Committee moves the data from the departments budget
form to the Financial Planning budget form and reconciles for accuracy.
All budget appeals must be conducted by the Budget Planning Committee.
12.1.2.7 Revisions and Adjustments to Draft Budget
The Board of Directors shall approve the final draft Budget document each
year.
Only revisions approved by the Managing Director shall be entered into the
budget development system after the appeal process.
Departmental Heads may appeal their preliminary budget to the Budget

Planning Committee.
The Accounts and Finance Department shall print ad hoc reports as required
by the Managing Director.
Budget Planning Committee shall advise the Managing Director in preparation

of budget. Any proposed changes shall be approved by the Finance Committee
of the Board and these changes shall be entered into the budget development
system via budget transfer or adjustment forms.
12.1.2.8 Approval and Ratification of Budget by Board of Directors
Managing Director and Chief Financial Officer shall prepare the final Company
budget.
The Managing Director in consultation with Budget Planning Committee shall

prepare the proposed budget to be sent to the Board of Directors.
The proposed draft budget shall be presented to the Managing Director for
ratification.
The Company Secretary shall forward the proposed budget to the Board of
Directors. The Board of Director shall ratify the budget at the Board meeting.
The approved budget shall be moved into production after ratification.
The copy of the approved budget shall be transmitted to the Accounts and
Finance Department for entry into computerized accounting system as the
source document.
12.1.2.9 Execution and Maintenance of Budget
Chief Financial Officer shall verify that the budget data is rolled into
production.
Chief Financial Officer shall compare the actual data with the budget.
All
revisions
to
the
approved
LEPARK
budget
concerning
unrestricted expenditures must be processed on the Budget transfer form or

the Budget adjustment form.
Budget revisions for unrestricted funds may be submitted as needed during

the year.
Budget revision initiator shall obtain the appropriate approvals.
The Accounts and Finance Department shall enter approved budget changes
into the Accounting system.
12.1.2.10 Monitoring of Actual Revenues and Expenditures to Budget
Each month the computerized accounting system shall produce financial

reports that can be reported by function or by account code. The reports
shall be available to LEPARK by the 10th business day of the following month
and shall be distributed electronically to appropriate users. The Chief
Financial Officer shall be responsible for this function.
The financial reports shall show actual revenues and expenditures as

compared to budget and the variance. Any material variances shall be
investigated by the Executive Staff Committee. Appropriate department
heads shall be notified of significant changes to budget and appropriate
action taken.
The financial reports shall be reviewed on a monthly and quarterly basis by

the Budget Planning Committee and Internal Audit function and any necessary
changes shall be made prior to dissemination of these financial reports to the
Board of Directors or external parties. The Managing Director and the Board
of Directors shall be notified of any unforeseen changes or circumstances
related to the financial status of LEPARK on a routine basis.
12.1.2.11 Utilization of Contingency Funds

Periodically, there may be exceptional instances, unforeseen at the time of
formulating the annual budget, when consideration needs to be given to the
approval of additional resource items.
The Managing Director shall have the authority to determine the funding source,
including contingency funds, for all exceptional funding requests. Approval shall be
given where it is deemed that they are worthy of support and if within the existing
budgets.
Where a head of cost center considers that a request for additional funding is
justified, they must provide the following information on the appropriate form in
order that due consideration can be given:
Reason and nature for the exceptional request
Why this item was not included in the cost center / departmental plan
Reason as to why the funds requested cannot be met from the existing budget
As required for requests for replacement posts, all bids for additional funds shall be
signed by the departmental head. Generally, it is anticipated that requests would
only be for additional funds in the year of account, any ongoing commitment being
built into the Cost Center Business Plan.
All decisions shall be reported as part of LEPARKs quarterly budget that shall be
monitored by the Budget Planning Committee.
13.
PRE-AUDIT
The objective of the policy is to establish standards for pre-audit of all payments
being processed by the Accounts and Finance Department. The purpose of preaudit is to ensure that all payments are in accordance with the laid rules and
procedures defined by LEPARK. The pre-audit will ensure that:
Proper authorizations for the expenditure are in place.
The supporting documents are attached.
The invoices or other document has been verified by the concerned

department.
13.1
Proper budget allocations exist for the expenditure.

RESPONSIBILITY
The Head of Internal Audit department shall be responsible for setting up the
separate pre-audit function within his domain for providing these services.
The Head of Internal Audit shall also be responsible for:
Establishing and coordinating the related audit;
Establishing all procedures;
Establishing all standard checklists; and
Preparing periodical reports on the pre-audit function.
13.1.1 Reporting
The head of the pre-audit section shall be reportable to the Head of Audit
department for ensuring implementation of procedures related to the pre-audit
function. The reports shall be prepared by the In-charge pre-audit and reviewed by
the Head of Internal Audit before being sent to the Managing Director.
13.2
PROCEDURE
The following procedure shall be adopted for pre-audit of all payments:

By the Accounts and Finance Department
The Accounts and Finance Department shall process all payments according to
the laid procedure.
A payment voucher shall be prepared based on the nature of the payment.
All necessary documents shall be attached with the voucher.
The cheque shall be prepared and attached with the voucher.
All necessary sanctions shall be attached.
All budget allocations shall be provided.
All urgent payments shall be marked / flagged accordingly for attention.
By the Pre-Audit Section

The pre audit section shall:
Verify the payment with the standard checklist to ensure that all required
parameters for the payments are covered. These shall include:
Submission of proper invoice by the vendor/supplier
All procedures in procurement have been followed
Proof of receipt of goods or completion of services
Proof of prior approval of the competent authority
Availability of budget limits
Whether running contract or single payment
Any previous problem in similar processing
Urgent payments are being requested and carry approval of the Head of
Department
Advances are being made on proper approvals and that previous if any
are settled
Salaries are being processed according to the laid procedures
All regular payments on account of rents rates and taxes are being made
in time
In case of any deficiency return the payment with remarks to the Accounts
and Finance Department for rectification of the short coming.
In case of payment being in accordance to the sanctions affix its approval.
Return the voucher etc., to the Accounts and Finance Department for
obtaining the signatures on the cheque.
14.
REPORTING
It is the policy of LEPARK to provide information on LEPARKs financial operation
to management, Board and other users in a timely and accurate manner.
The objective is to provide information that shall inform the users about:
Historical record of the financial activity
Comparative and trend analysis
Data for budgeting future periods and a basis for measuring performance
Evaluating and monitoring operating performance
This policy shall cover all reports, both internal and external, and apply to all
sponsored awards at LEPARK and set forth the requirements for both interim and
final reporting of expenditures in accordance with the sponsors terms and conditions.
14.1
RESPONSIBILITY
Responsibility for Reporting
The Chief Financial Officer shall be responsible for the timely preparation,
approval and submission of all required financial reports, including interim and
final financial reports required under provisions of Companies Ordinance, 1984 and
directives issued by Securities and Exchange Commission of Pakistan.
The Chief Financial Officer shall also be responsible for:
Establishing and coordinating the annual financial closing and related audit.
Establishing all closing schedules in consultation with the Finance Committee

to ensure that the financial statements are completed by July 31 of each
year.
The Chief Financial Officer shall be reportable to the Managing Director for
ensuring implementation of policy and procedures related to financial
reporting.
The reports shall be prepared by the Manager Accounts and reviewed by the Senior
Manager Finance before being sent to Chief Financial Officer for his review and
further submission.
14.1.1 Report on Internal Controls
Internal control shall be designed to provide reasonable assurance regarding the
reliability of information ensuring that all transactions are accurate and properly
recorded in a timely manner. A report on internal controls will evaluate the
effectiveness and operation of internal controls in the achievement of LEPARK goals
and objectives. This report will be prepared by the internal audit department and
a review of this report will be made by the executive committee of the Board for
any recommendation to the Board of Directors.
14.1.2 Chief Financial Officer Review
The Chief Financial Officer shall review and analyze all the financial reports.
Significant variances to budget shall be communicated to the Managing
Director/Board of Directors in a timely manner.
14.1.3 Reporting Schedule
At the beginning of each fiscal year, the month-end closing and reporting schedule
shall be produced and distributed based on LEPARK closing schedule, and the time
required to consolidate the financial information across the entire organization.
14.1.4 Expense Summary Report

The expense report shall show total year-to-date direct expenses by the
departments as compared to budget. It shall enable to assess the financial
performance for those costs that they have direct control over operations.
14.1.5 Cash forecasting
Chief Financial Officer shall prepare cash forecast, on the basis of which
parameters for the development of budgets are established by the Budget Planning
Committee for each department.
14.1.6 Quarterly Budget Variance Report
Quarterly Budget Variance Reports shall be generated and distributed for each
department on a monthly basis. These reports shall show year-to-date, detailed
line-item income and expense for the individual department as compared to
budget, prior year, and year-end forecast information.
14.1.7 Aging of Creditors
Every month aging of creditors will be made which will help in planning cash
forecasting for the following month.
14.1.8 General Ledger Detailed Listing Reports
The General Ledger Detailed Listing Reports shall be generated and distributed for
each department on a monthly basis. These reports shall show the individual detail
transactions that support each year-to-date income, expense or balance sheet.
14.1.9 Balance Sheet
The Balance Sheet shall be prepared on bi-annual basis. This report shall compare the
current year-end balance of all assets, liabilities and net assets to the prior year. The
Accounts and Finance Department shall prepare monthly management accounts.
Page
180
14.1.10 Capital Asset Reports

LEPARK shall maintain an internal database containing all capital assets. A number of
reports shall be created that contain information regarding capital assets, including:
Depreciation for All Assets
Budget Capital Asset Detail
These reports shall be generated for the Annual Budget Process, at fiscal year-end,
and also on a need basis. At fiscal year-end these reports shall be used to reconcile
LEPARKs general ledger.
14.1.11 Donor Specific Reports
LEPARK shall prepare and submit all donor specific reports in accordance with the
terms of award. The Chief Financial Officer shall be responsible for ensuring that
these donor specific reports are submitted in a timely manner.
14.1.12 General Guidelines
The guidelines below shall be considered when following this policy:
The
annual
financial
statements
shall
include
LEPARKs
operational,
services, activities, and those of its subsidiaries as part of LEPARKs operations.
The annual financial statements shall be subject to annual audit.
The annual financial report shall be submitted to the Board of Directors for
approval.
All operating departments shall comply with the closing schedule as

established.
All LEPARK entities that maintain separate financial accounting systems shall
report the results of those operations to the Accounts and Finance
Department on a monthly basis or in accordance with an alternative reporting
schedule as agreed to by the Accounts and Finance Department.
Monthly statements for all general ledger accounts shall be retained by the
Accounts and Finance Department.
APPENDICES
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182

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LAHORE PARKING COMPANY LTD

ACCOUNTING AND FINANCIAL REPORTING MANUAL

ACCOUNTING AND FINANCIAL REPORTING MANUAL

ACCOUNTING AND FINANCIAL REPORTING MANUAL

Finance Department Lahore Parking Company Ltd

ACCOUNTING AND FINANCIAL REPORTING MANUAL

ACCOUNTING AND FINANCIAL REPORTING MANUAL

ACCOUNTING AND FINANCIAL REPORTING MANUAL

ACCOUNTING AND FINANCIAL REPORTING MANUAL

7.2 RECEIVABLE MANAGEMENT

7.3 ADVANCES AND DEPOSITS

ACCOUNTING AND FINANCIAL REPORTING MANUAL

ACCOUNTING AND FINANCIAL REPORTING MANUAL

ACCOUNTING AND FINANCIAL REPORTING MANUAL

ACCOUNTING AND FINANCIAL REPORTING MANUAL

7.5.3.1.5 Cash Disbursements Cancelled / Stop

ACCOUNTING AND FINANCIAL REPORTING MANUAL

9. ACCOUNTING FOR REVENUE

ACCOUNTING AND FINANCIAL REPORTING MANUAL

10.2 OTHER THAN PAYROLL EXPENSES

10.3 PAYMENTS UNDER THE CONTRACTS FOR CIVIL WORKS

ACCOUNTING AND FINANCIAL REPORTING MANUAL

12.1.2 Overview of the Budgeting Process

ACCOUNTING AND FINANCIAL REPORTING MANUAL

ACCOUNTING AND FINANCIAL REPORTING MANUAL

SUB PROJECTS/WORKS REGISTER

ACCOUNTING AND FINANCIAL REPORTING MANUAL

ABSTRACT OF PAYMENTS DURING THE MONTH OF

ASSET DISPOSAL FORM

ACCOUNTING AND FINANCIAL REPORTING MANUAL

Lahore Parking Company Ltd was established as a company limited by guarantee

VISION STATEMENT AND VALUES

Accounts and Finance Department is an operating department of LEPARK and is

Providing centralized services of accounting and treasury management to

Using current technologies in the implementation of best accounting and

Recognizing change as an essential process critical to the financial

The purpose of this manual is to establish self-acting standards, providing a clear

This manual shall be reviewed and approved by the Board of Directors of

Finance department - Lahore Parking Company Ltd

TERMS USED IN THE MANUAL

The manual and computerized records of

The obligation to pay off a short term debt

The money owed to LEPARK as a result of

Accounts Written Off

Accounts receivables which in the opinion of

The net invoice price of fixed assets

Allowance For Doubtful

The management's estimate of that portion

of gross receivables which shall be or shall

Something valuable that an entity owns,

Controlled by LEPARK as a result

From which future economic benefits

Process of matching and comparing figures

Bank Reconciliation Statement

Statement showing the comparison of cash

A copy issued by a bank to a customer

A plan of financial operation embodying an

Capitalized Fixed Assets

Capitalized fixed assets are those which

Refers to money in the physical form of

Cash Advance Request Form

A form specifically designed for acquiring

A book used to record details of cash moving

Manual or electronic device for calculating