A construction and contracting company

With reference to the above subject, a complete revision of the existing financial system has been carried out and the following reporting system has been set up:

Financial accounting reporting system to produce the following:

Management Accounting System (Four month budget):

Job description & job classification of the Accounting department:

Reporting the financial results on a timely & accurate basis, in accordance with the company's policies & procedures. Projects biding, feasibility studies, contracts negotiations, & contracts registration. As well as handling fines & penalties. Including recruitment of local staff, visa, accommodation, camps canteens & catering. Tax & customs clearance, material procurement from local markets, imports & temporarily admission of items, as well as managing the company's support functions.

To implement the accounting system. Supervise all the accounting Functions including sub-contractors accounts, budgets preparation & budgetary control, contracts advance payments, contracts bank guarantees, & letters of credit. Cash projection, invoices collection, banking & Transfer of money.

To implement the internal control procedures, regarding the financial & administrative matters of the accounting dept. as well as the Sudanese rules & regulations for conducting business, cash flow projection for working capital & capital expenditure, expenditure control through budgets & standard costing, & staff control through motivation & training, & facilitate the work of the external auditors of the company.

Preparation of final Accounts (income statement & balance sheet) accurately and in time. Analysis of accounts, including ratio analysis. Internal auditing of all transactions and its documentation. Follow up the budget, and analyze the variances between budgeted expenditure and actual spending.

Preparation of the operating budget, with full co-ordination with the operation department. Revenue and cost forecasting. preparation of the purchasing budget with full co-ordination with the purchasing department. Preparation of capital expenditure budget, master budget, cash flow forecast, and reporting the measurement of performance (NPV, IRR, B/E analysis etc.).

Journal voucher preparation for all transactions. Bank reconciliation. Invoice generation. And stores updating.

Follow up of all bank accounts. Collection of invoices, and all clients related matters, follow up of all suppliers and sub-contractors accounts, insurance, customs and tax matters, and all related outdoor matters.

To affect all payments and receipts of cash. Closing cash book daily at midday and report the cash position with all documents and receipts to the finance system accountant to prepare J.V before passing them up to the internal audit accountant.

The company suffers liquidity problems, this is obvious from the current assets ratio and the quick acid test ratio calculated from the balance sheet.

Liquidity problems arise from week collection of invoices, fast expansion of operations, accompanied by uncontrolled expenditure through strict budgets.

Current staff is not enough in number to carry out the functions of the finance system.

Existing staff lack industry experience, need to be trained and backed up by experienced senior accountants.

The current system (oracle) has been left as it is. Another reporting system (spreadsheet system) is set, and linked to the existing system, to produce the financial position of the company, with detailed notes to accounts and cost and revenue analysis.

A spreadsheet management accounting system has been established for budgets and budgetary control.