FINANCIAL POLICY

Revenues: 

1. The ADUC revenues consist of student’s tuition and other fees. 
2. Each Semester, the Admissions and Registrar Office communicate a list of prospective students joining the ADUC to the Accounts. 
3. The Registrar also communicates a list of continuing students to the Accounts. 
4. Based on the above lists, Revenues are collected by the Accounts and registered in the EIAS. 
5. Fees are either payable in full before each Academic Semester’s commencement or in installments during the Academic Semester. 

 

Received Notes: 

1. All items received by the ADUC will be verified against the Purchase Order and Delivery Order. 
2. A Received Note is prepared by the receiving department and forward to the Accounts Department 
3. Proper entry is made in the EIAS with a unique reference number. 

 

Deposits 

1. Daily, the cash is deposited in the ADUC bank account 
2. At the end of the day, all visa transactions are transferred through the POS machine and will be credited to the ADUC bank account after one working day. 
3. Post Dated Cheques are scanned on their maturity through the cheque scanning machine provided by the Bank; the amount will be credited after two working days in the ADUC bank Account.
4. Online transaction is credited to the ADUC bank account after one working day.
5. To withdraw the Post-dated Cheque (PDC) previously submitted, the equivalent amount must be paid three days before the PDC date.
6. PDC previously submitted cannot behold for more than ten days; otherwise, a penalty will be AED 250+VAT.

 

Expenditures: 

• Capital Expenditures: 

1. Any purchase of equipment with an estimated useful life of more than one year is considered a capital expenditure 
2. All capital expenditures will be recorded as Property, Plant, and Equipment.
3. Any capital expenditure above the budgeted amounts will have to be approved by the Board of Trustees. 

• Revenue Expenditures 

Any purchase of equipment with a useful life of less than one year will be considered revenue expenditure. 

 

Authority to Enter into Contracts

• The sole authority to enter into formal contracts is the President of ADUC.

Bank Reconciliation

• Bank reconciliation is prepared daily.
• Daily reconciliation statements are prepared by the Accounts checking the balance as per books with banks statement balance.

 

Production of Regular Financial Reports 

• All books of accounts are updated for every transaction on a timely basis. 

• Daily Reports: 

• Cash and bank balance 
• Income summary
• Expenditure summary
• Post Dated Cheque report
• Cheque return Analysis report

 

• Monthly Accounts: 

• Monthly updates of accounts and financial reports are prepared and submitted to the President. 

 

• Annual Accounts:

• At the end of each fiscal year, annual financial statements are prepared and submitted to the President and the Board of Trustees.
• The Annual accounts include reconciliation, confirmation of balances, adjustments, physical counts.

 

Signature Authorizations 

• Authorized signatories sign all cheques for the disbursement of ADUC funds. 

 

Accounting System and Controls

• ADUC will maintain an accounting system per the laws of the UAE / International Accounting Standards.
• Strict controls over the accounting and record-keeping process have been established, such as segregation of duties, daily cash counts, daily bank reconciliation, monthly reconciliation of supplier, and students’ balances.
• Access to the accounts department is strictly monitored to avoid/minimize fraud, disruptions, and unauthorized transaction risks.
• Fireproof safe deposit at ADUC premises for the storage of assets such as cash and cheques.

 

Dishonored cheque and payment against the cheque

• The accounting head cancels a cheque in the system if the student pays the amount against the Post-dated Cheque.
• After receiving the online notification of the dishonored cheque from the Bank, the assistant accountant un-post the cheque in the system and forward the payment from the students to the cashier for follow-up. 

Payment Management

• Payroll

• Every month Assistant Accountant should receive the employees’ data from the Human Resource Department.
• Based on the data received from HR, the Assistant Accountant checks & prepares salaries in the EIAS accounting module.
• Once salaries are finalized by the Accounting Head, Admin & Finance Director reviews and signs the salary sheet.
• Finance & Administration Director submits the salary sheet to President for approval.
• Upon the President’s approval of the salaries, the Accounting Head prepares the bank transfer letter and uploads it online in the bank portal.
• For employees who do not have a bank account, their salary will be transferred through Al Ansari Exchange. 

 

• Supplier

• Payment of supplier’s goods and services to the ADUC will be processed after receiving and verifying the invoices with Purchase Order / MRF signed by the concerned person as per the authorization limits.
• A Cheque or online transfer is prepared. In the case of a cheque, it is submitted to the authorized signatory for signature.
• Payment vouchers with receipt vouchers and supporting documents are kept in the file.

 

• Students

• After receiving all the refund/cancellation forms regarding the Academic / Short course, the Assistant accountant verifies the forms, makes a calculation and attaches all the supporting documents. It is then submitted to the Accounting Head for approval. Once approved by the President, a cheque or online transfer is made. 
• In case of a cheque, it is submitted to the authorized signatory for signature.
• Payment vouchers with the receiver’s signature and supporting documents are kept in the file.
• In case the visa is rejected, administrative charges are applicable as per ADUC policy. 

 

Note: All the cheques should be under the name of Students / Supplier. No cheque will be issued in cash. 

 

• Part-time faculty and overload to permanent faculty 

• After receiving the attendance sheet and clearance form signed by the Faculty, Dean, Vice President for Academic Affairs, and IE Unit, the Finance & Administration Director verifies & attaches all the supporting documents and submits them to the President for approval. Once approved, a cheque or online transfer is made. 
• In the case of a cheque, it is submitted to the authorized signatory for signature. 
• Payment vouchers with the receiver’s signature and supporting document are kept in the file.