1 STANDARD OPERATING PROCEDURES & POLICY MANUAL Shelford Construction Pty Ltd Finance & Accounts — Daily,Weekly, Monthly & Quarterly Operations Document Title Standard Operating Procedures & Policy Manual Department Finance & Accounts Frequencies Covered Daily, Weekly, Monthly, Quarterly Version 1.4 Effective Date 07 May 2026 Classification Internal — Confidential Review Cycle Annual or upon process change Internal Controls 35 controls embedded across all procedures
2 Table of Contents 1 Document Purpose and Scope 2 Definitions and Abbreviations 3 Roles and Responsibilities 4 Internal Control Framework 4.1 Control Environment 4.2 Risk Assessment 4.3 Control Activities 4.4 Information & Communication 4.5 Monitoring Activities 5 Policy Statements 5.1 Invoice Processing & Approval Policy 5.2 Purchase Order Compliance Policy 5.3 Cost Allocation Policy 5.4 Supplier Onboarding & Master Data Policy 5.5 Job Cost & WIP Reconciliation Policy 5.6 Bunnings Powerpass & Fuel Card Usage Policy 5.7 Credit Note Handling Policy 5.8 Balance Sheet Reconciliation Policy 5.9 Payment Scheduling Policy 5.10 Retention Management Policy 5.11 Offshore Team Coordination Policy 6 Daily Operating Procedures 6.1 SOP-001: Invoice Publishing to Platforms 6.2 SOP-002: Publishing Site Order Invoices 6.3 SOP-003: Dext Preparation for Offshore Team 6.4 SOP-004: Job Cost Reconciliation 6.5 SOP-005: Import Invoices — Approval Max / Fastbuild 6.6 SOP-006: Land & Development Cost Allocation 6.7 SOP-007: Bunnings Powerpass Procedures
3 6.8 SOP-008: New Supplier/Contractor Onboarding 6.9 SOP-009: Creating a New Contact — Residential Construction 6.10 SOP-010: BP Fuel Card Ordering 6.11 SOP-011: Proscan/Procure Upload & Publishing Process 7 Monthly Operating Procedures 7.1 SOP-012: Supplier Statement Reconciliation 7.2 SOP-013: Supplier Statement Preparation 7.3 SOP-014: Checking & Scheduling EOM Supplier Payments 7.4 SOP-015: Cost of Sales Check – Integration/Import 7.5 SOP-016: Balance Sheet Schedules Reconciliation – (GL Accounts) 7.6 SOP-017: Statutory Declaration Procedure 7.7 SOP-018: End-of-Month Job Cost Duplicate Checks 8 Quarterly Operating Procedures 8.1 SOP-019: WIP Reconciliation 8.2 SOP-020: Retention Reconciliation & Review (Payable & Receivable) 9 Compliance, Enforcement & Disciplinary Framework 10 Document Control & Revision History 11 Approval and Authorization A Appendix A: Internal Controls Register B Appendix B: Audit Trail Requirements Matrix C Appendix C: Approval Authority Matrix
4 1. Document Purpose and Scope This Standard Operating Procedures & Policy Manual establishes the authoritative governance framework for all finance and administrative operations performed across the construction company. It consolidates every daily, monthly, and quarterly procedure into a single, comprehensive reference document underpinned by an optimum internal control framework designed to ensure accuracy, accountability, segregation of duties, and complete audit readiness. The manual has been specifically designed to be audit focused. Every procedure is supported by preventive controls that stop errors before they occur. Complete audit trails are mandated at every stage, with documented evidence of who performed each action, when it was performed, what was done, and who authorised it. This design ensures that any auditor — internal or external — can trace any transaction from inception to final posting with full confidence in the integrity of the process. 1.1 Objectives • Ensure consistent, repeatable execution of all financial and administrative tasks regardless of which team member performs them. • Establish clear accountability through defined roles, responsibilities, and approval authorities for every process. • Maintain data integrity across all integrated systems — Dext, ApprovalMax, Fastbuild, Xero, Procure, Smoothx and Employment Hero. • Safeguard company assets through enforceable policies, segregation of duties, and multi-level approval controls. • Provide a comprehensive training and reference resource for onboarding new team members and upskilling existing staff. • Support complete audit readiness with documented evidence trails, reconciliation records, and approval logs for every transaction. • Minimise processing errors, rework, and delays through standardised workflows with embedded quality checkpoints. • Ensure compliance with Australian taxation law (GST), corporations law, and construction industry regulations. 1.2 Applicability This manual applies to all personnel involved in the company's financial and administrative operations, including the Onsite Accounts Team, the Offshore Accounts Team, Construction Project Managers, Job Supervisors, Sales Representatives, the Finance Manager, and any contractor or temporary staff performing the covered tasks. Compliance with these procedures is mandatory. Deviation from any procedure requires written authorisation from the Finance Manager or a delegated authority, documented and filed as part of the audit trail.
5 2. Definitions and Abbreviations The following terms and abbreviations are used throughout this manual. All personnel must be familiar with these definitions to correctly interpret and execute the procedures described herein. Term Definition Dext Cloud-based document management and invoice processing platform used to capture, code, and publish supplier invoices ApprovalMax Approval workflow system integrated with Xero that manages invoice approvals and payment authorisations Fastbuild Construction management software used for job costing, purchase orders, and project tracking Xero Cloud-based accounting software serving as the company's general ledger and financial reporting system Employment Hero HR and asset management platform used to track the Site Order Purchase Order register PO (Purchase Order)/Commitment Procore A formal, system-generated authorisation to purchase goods or services, issued through Fastbuild/Procore Site Order A purchase order raised specifically for site-based procurement, tracked in the Site Order Book TCTradeCode Trade classification code used to categorise costs by trade type within construction jobs DEXT Category A specific cost allocation category within Dext used for Cost of Sales Powerpass Bunnings trade credit card programme enabling purchases on company account with job-level tracking WIP Work in Progress — the value of construction work commenced but not yet claimed or completed Retention A percentage of payment withheld from subcontractors pending practical completion, tracked in a retention schedule (Payables & Receivables) GST Goods and Services Tax — the 10% value-added tax applied to most goods and services in Australia ABN Australian Business Number — unique identifier for businesses registered with the Australian Taxation Office ABR Australian Business Register — the central register of ABN holders, used for ABN verification 4Factor Security Multi-factor authentication protocol used for authorising changes to supplier banking details Stat Dec Statutory Declaration — a legal declaration required for Department of Community jobs for both Residential & Commercial Jobs PBA Project Bank Account — notation indicating invoice to be paid via the Project Bank Account RET Retention notation indicating a retention amount is held against an invoice
6 COB Close of Business — the end of the standard business day EOM End of Month — the final business day of the calendar month GL General Ledger — the master set of accounts in Xero that records all financial transactions AP Accounts Payable — the ledger account tracking amounts owed to suppliers and subcontractors AR Accounts Receivable — the ledger account tracking amounts owed by clients to the company
7 3. Roles and Responsibilities Clear delineation of roles and responsibilities is essential for maintaining segregation of duties — a cornerstone of internal control. The following table defines the key roles, their primary responsibilities, and the specific procedures they are accountable for executing. Role Primary Responsibilities Relevant SOPs Onsite Accounts Team Receive and process incoming invoices; perform initial Dext review and coding; locate PO information; assign approvers; prepare files for offshore team; perform job cost reconciliation; onboarding new suppliers SOP-001 to SOP-010, SOP-012, SOP-013 Offshore Accounts Team Publish invoices in Dext; complete data entry of credit notes in Fastbuild; verify and edit invoice details; process creditor invoices with system-generated POs SOP-001, SOP-002, SOP-004 Finance Manager Authorise development cost allocation changes; approve completion of development projects; oversee reconciliation outcomes; enforce policy compliance; approve test payments; provide AP aged reports; Execute all payment schedules All SOPs — oversight role Commercial Project Managers Approve invoices for commercial projects; review and request trade code changes; verify job costs during reconciliation SOP-001, SOP-005, SOP-018 Residential Supervisors Serve as assigned approvers for residential site orders; verify invoice details match work completed; provide trade code revision requests SOP-001, SOP-002, SOP-005 Sales Representatives Submit commission invoices after slab milestone; submit monthly retainer invoices; ensure invoices comply with standard requirements SOP-003, SOP-015 Scheduling Department Resolve queries on invoices exceeding PO amounts; authorise additional costs; serve as approvers for residential EO supplier invoices SOP-001, SOP-002 Drafting Manager Approve preliminary invoices Approval Matrix Design Manager Approve utility invoices for display homes Approval Matrix Office Coordinator Approve head office utility, uniform, and stationery/computer invoices Approval Matrix Senior Site Manager Approve motor vehicle repair invoices; second approval for excessive repairs Approval Matrix Site Personnel (Powerpass/Fuel) Use Bunnings Powerpass and BP Fuel cards in compliance with company policy; provide correct job details for all purchases SOP-006, SOP-009
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9 4. Internal Control Framework This section establishes the company's internal control framework. The framework comprises five interrelated components: Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring Activities. Together, these components provide reasonable assurance that the company's financial operations are accurate, reliable, compliant, and auditable. 4.1 Control Environment The control environment sets the tone for the organisation. It is the foundation upon which all other components of internal control are built. The company's control environment is characterised by the following principles: • Tone at the Top: The Finance Manager and senior leadership are committed to integrity, ethical values, and compliance. All policies in this manual are enforceable and will be enforced consistently. • Segregation of Duties: No single individual may authorise, record, and approve the same transaction. The three-way separation of duties (initiation, recording, approval) is embedded across all procedures. • Competence Commitment: All team members must demonstrate competence in their assigned procedures before being granted system access. New team members must complete training. • Accountability Structure: Every action in every procedure is assigned to a named role. Undocumented or unauthorised actions are policy violations. • Access Controls: System access is role-based and least-privilege. Access rights are reviewed and revoked upon role change or termination. 4.2 Risk Assessment The company identifies and analyses risks that could prevent the achievement of its financial reporting and operational objectives. The following risk categories are assessed across all procedures: Risk Category Description Primary Controls Fraud Risk Unauthorised transactions, fictitious suppliers, misappropriation of funds Segregation of duties; multi-level approvals; test payments for new suppliers; 4Factor banking verification; bank detail cross-checks Error Risk Data entry errors, coding mistakes, calculation errors, duplicate payments Dual-entry verification; reconciliation procedures; automated system validations; quality control checkpoints; monthly duplicate detection checks Compliance Risk GST errors, late filings, statutory declaration non-compliance ABN verification; GST coding reviews; monthly reconciliation cycles; statutory declaration tracking
10 Process Risk Missed approvals, lost invoices, delayed processing, system failures Daily monitoring protocols; email labelling system; Dext review queue management; regular system backups Master Data Risk Incorrect supplier details, outdated banking information, wrong GL codes Onboarding verification procedure; banking cross-checks; Chart of Accounts Matrix; periodic master data reviews Segregation Risk Concentration of duties enabling circumvention of controls Role-based access; approval hierarchy; onshore/offshore separation; Finance Manager oversight 4.3 Control Activities Control activities are the specific policies and procedures that help ensure management directives are carried out. They include approvals, authorisations, verifications, reconciliations, and performance reviews. The following control classification is used throughout this manual: Control Type Purpose Examples in This Manual Preventive Stop errors or irregularities before they occur Approval requirements; PO matching; ABN verification; 4Factor banking check; test payments; colour-coding protocols; mandatory field completion Detective Identify errors or irregularities after they occur Reconciliations (job cost, supplier, balance sheet, WIP, retention); variance analysis; credit note cross-referencing; exception reports Corrective Remedy errors or irregularities once detected Trade code reclassification; retainer reclassification; adjustment journal entries; system updates after reconciliation; follow-up on missing documents Directive Ensure desired outcomes are achieved Standard description format; Chart of Accounts Matrix; Invoice Approval Matrix; colour-coding standards; file naming conventions 4.4 Information & Communication Effective internal control requires that relevant, reliable information is captured, processed, and communicated to the right people at the right time. The following information and communication protocols are mandatory: • System Integration: The Dext → ApprovalMax → Xero pipeline ensures that every invoice follows a single, auditable path from receipt to payment. No transaction may be processed outside this pipeline. • Cross-System Consistency: Where data exists in multiple systems (e.g., Fastbuild and Xero), the team must ensure consistency through regular reconciliation and documented updates.
11 • Offshore Communication: The onsite team must prepare, colour-code, and file invoice data before notifying the offshore team. The offshore team must confirm receipt and report processing completion. • Exception Escalation: Any exception, discrepancy, or uncertainty must be escalated to the Finance Manager before proceeding — not after. Verbal escalations must be followed by written confirmation within 24 hours. • Documentation Standards: All actions, decisions, approvals, and exceptions must be documented in the relevant system (Dext notes, ApprovalMax comments, Teams messages, reconciliation worksheets). Undocumented actions are treated as non-compliant. • Monthly Reporting: The Finance Manager receives monthly summaries covering reconciliation outcomes, variance analyses, outstanding items, and action status. 4.5 Monitoring Activities Ongoing monitoring ensures that internal controls continue to operate effectively over time. The company employs the following monitoring activities: Monitoring Activity Frequency Responsible Party Output Daily invoice processing review Daily Onsite Accounts Team Processing completion confirmation ApprovalMax queue monitoring Daily Onsite Accounts Team Approval status log Job cost reconciliation Daily Onsite Accounts Team Reconciliation worksheets, variance reports Supplier statement reconciliation Monthly Onsite/Offsite Accounts Team Reconciliation reports, variance analysis Balance sheet schedule reconciliation Monthly Finance Manager Signed reconciliation packs WIP reconciliation Quarterly Finance Manager + Accounts WIP reconciliation reports Retention reconciliation Quarterly Onsite Accounts Team Retention review reports Internal control self- assessment Quarterly Finance Manager Control effectiveness report Master data review (supplier banking, GL codes) Quarterly Finance Manager Master data review report Annual policy review and re- acknowledgement Annual Finance Manager Updated manual, signed acknowledgements Job cost duplicate check Monthly Accounts Officer Duplicate review worksheet, monthly review log
12 5. Policy Statements The following policy statements establish the mandatory rules and governance principles that underpin all daily, weekly, monthly, and quarterly operations. These policies are enforceable standards — not advisory guidelines. Non-compliance may result in disciplinary action, access revocation, or financial liability as outlined in Section 9. 5.1 Invoice Processing & Approval Policy All supplier and subcontractor invoices must be processed through the company's approved systems and workflows. No invoice may be paid, committed, or recorded outside of the Dext → ApprovalMax → Xero pipeline. • All invoices must be received into Dext before any processing commences. Invoices received via email, post, or hand-delivery must be uploaded to Dext on the same business day. • Every invoice must be reviewed and coded in Dext with complete and accurate information before being published to ApprovalMax. Incomplete or incorrectly coded invoices must not be published. • The integration field in Dext must always be set to "ApprovalMax" for all invoices requiring approval. No invoice may bypass the approval workflow unless explicitly covered by SOP-002 or the Invoice Approval Matrix. • All invoice descriptions must follow the standard format: "JobNumber - TCTradeCodeNumber". Free-text or non-standard descriptions are not permitted. • Tax codes must be applied correctly in accordance with the Chart of Accounts Matrix. The team is responsible for verifying tax coding before publishing. • Approvers must be assigned in accordance with the Invoice Approval Matrix (Appendix C). No team member may assign themselves as approver on an invoice they initiated. • All invoices must be monitored in ApprovalMax throughout the day. Special cases — credit requirements, payment holds, retention amounts, job number/trade code changes, and PBA additions — must be processed by COB daily. • Invoices dated outside the current processing month must be flagged and escalated to the Finance Manager before processing. IC-001 [Preventive Control]: All invoices must enter through a single controlled gateway (Dext). No direct entry to Xero or ApprovalMax is permitted for standard invoices. This prevents unrecorded costs and ensures completeness of the invoice register. Audit Trail: Dext upload timestamp, user ID, and source email are automatically recorded. ApprovalMax approval chain is logged with timestamps and approver IDs. 5.2 Purchase Order Compliance Policy Purchase orders/Commitments are the foundational control mechanism for all procurement activity. No goods or services may be procured without a valid purchase order, and all invoices must be matched against their corresponding purchase order before processing.
13 • Every invoice must be matched to a valid purchase order. Invoices received without a corresponding PO must be sent to the relevant supervisor for approval. • For site order purchase orders, the PO number must be located in either Employment Hero (onsite team) or the Site Order Book — Current Listing (offshore team) before the invoice is processed. • When an invoice amount exceeds the PO amount ("Extra to the Order"), the Scheduling Department must be advised. Under no circumstances may an overage be approved without the supervisor’s approval. • The approver assigned to each invoice must be determined by the Invoice Approval Matrix. Residential invoices are assigned per the Site Purchase Order Book; Commercial invoices are assigned to the relevant project manager. • Invoices with system-generated POs where supervisor approval is not required must still follow the full data entry and verification procedure. The absence of PO - required approval does not diminish the requirement for accuracy. • PO residual amounts must be noted during Fastbuild verification and cross-checked against Dext publishing to ensure costs do not exceed authorised PO values. IC-002 [Preventive Control]: Three-way match required: PO → Invoice → Delivery/Receipt. No payment without a matched and approved PO. This prevents unauthorised procurement and duplicate payments. IC-003 [Detective Control]: Invoice amounts exceeding PO values must be queried with the Scheduling Department and documented. This prevents cost overruns from being processed without authorisation. 5.3 Cost Allocation Policy – Cost of Sales (Chart of Accounts) Accurate cost allocation is fundamental to reliable financial reporting, job profitability analysis, and development project tracking. • All supplier or contractor invoices related to jobs or land development must be coded using the DEXT category and the corresponding asset number as defined in SOP-006. No alternative coding is permitted. • Development cost allocation codes remain in effect until the Finance Manager formally advises that a development is complete. Team members must not switch to regular build allocation without written authorisation. • For standard (non-development) invoices, the Chart of Accounts Matrix must be used to select the correct category. If unsure, escalate to the Finance Manager — do not guess. • The description field on all invoices must accurately reflect the job number and trade code. Vague or incomplete descriptions will be returned for correction. • Trade code changes requested by the Construction Team must be verified for authority, documented with reason and requester name, and applied consistently to both ApprovalMax and Fastbuild. IC-006 [Preventive Control]: Development lot cost allocation uses a locked coding structure (DEXT + specific asset codes) that can only be changed with Finance Manager authorisation. This prevents misallocation of development costs to regular build jobs.
14 5.4 Supplier Onboarding & Master Data Policy Supplier onboarding is a critical control point that prevents fictitious suppliers, incorrect banking details, and fraud. This policy establishes the mandatory verification steps that must be completed before any new supplier can receive payment. • All new suppliers and contractors must complete the Business Details Form and be verified through the full onboarding procedure (SOP-008) before any payment is processed. • ABN verification via the ABR website is mandatory. The company name, GST status, and ABN number on the form must match the ABR record. Discrepancies must be resolved with the supplier before proceeding. • Banking details must be verified through both verbal confirmation (phone call to the supplier using the provided number) and documentary evidence (bank-branded document such as a bank cheque, deposit slip, or statement extract). • The 4Factor security check must be completed before banking details are entered into Xero. • A $1 test payment must be processed and confirmed received by the supplier before any regular payments are made. The Finance Manager must authorise the test payment, documents must be attached to the Xero contact. • Banking details must be cross-checked monthly during supplier statement reconciliation — comparing current month invoices against prior month invoices and the supplier statement for any changes. • No supplier may be entered into Xero or Fastbuild with banking details at the initial system entry stage. Banking details are only entered after the verification process is complete. IC-007 [Preventive Control]: Independent banking verification (verbal + documentary) before any payment prevents payment redirection fraud — one of the highest-risk fraud methods in the construction industry. IC-008 [Preventive Control]: Test payment confirmation with CBA Bank Details verification provides an additional independent check that banking details are correct before any material payment is made. IC-009 [Detective Control]: Monthly cross-check of bank details during supplier reconciliation detects unauthorised changes to supplier banking information between reconciliation cycles. Example – Test Deposit CBA
15 5.5 Job Cost & WIP Reconciliation Policy Job cost and WIP reconciliation are critical controls that ensure the company's financial records accurately reflect the true cost and progress of construction projects. • Job cost reconciliation is performed daily for active construction projects upon request. WIP reconciliation must be performed quarterly and completed within 5 working days of receiving the Finance Manager's report. • All variances identified during reconciliation — missing costs, timing differences, coding discrepancies, and amount differences — must be investigated, documented, and resolved. Unexplained variances must be escalated to the Finance Manager. • Trade code changes must be verified for authority, documented with reason and requester, and applied to both ApprovalMax and Fastbuild simultaneously. • Reconciliation worksheets, supporting documents, and communications must be filed and retained. Variance reports must be submitted to the Finance Manager weekly (daily recon) or upon completion (WIP recon). IC-010 [Detective Control]: Independent system-to-system reconciliation (ApprovalMax vs Fastbuild vs Xero) detects processing gaps, coding errors, and missing entries that would otherwise remain undetected. Example of Chart of Account Matrix
16 5.6 Bunnings Powerpass & Fuel Card Usage Policy The Bunnings Powerpass card and BP Fuel Card are company-controlled purchasing facilities that must be used responsibly and in strict accordance with this policy. • Every Bunnings Powerpass purchase must be allocated to a valid Shelford supervisor name, job number, and cost code at the time of purchase. No purchase may be left unallocated. • If Shelford details are not available, the cardholder must contact their manager before completing the transaction. Do not leave Bunnings until the cost has been correctly allocated. • Misuse of the Bunnings Powerpass card will result in immediate suspension. Repeated violations may result in permanent revocation and disciplinary proceedings. • BP Fuel Cards must be ordered only for company vehicles or authorised staff, with Financial Manager authorisation required for all new cards and amendments. • All fuel cards must use the standard company PIN. Purchase restrictions (fuel type, lubricants only, no non-fuels) must be configured at the time of card creation and may not be altered without Financial Manager approval. • Vehicle descriptions and registration numbers on fuel cards must be accurate and maintained in the Vehicle Register. IC-011 [Preventive Control]: Mandatory cost allocation at point of sale prevents unallocated costs from entering the system, which would require time-consuming investigation and may result in misallocation. IC-012 [Preventive Control]: Financial Manager authorisation for all new fuel cards and amendments prevents unauthorised card issuance and ensures card parameters are properly restricted. 5.7 Credit Note Handling Policy Credit notes require special handling to ensure they are legitimate, properly authorised, and correctly recorded in all systems. • All credit notes must be uploaded to Dext via the accounts email box and kept under "To Review" until Xero publishing. • Before processing a credit note, verify the existence of a correlating invoice. Credit notes without a matching invoice must be investigated and escalated to the Finance Manager. • Determine whether supervisor or project manager approval is required for the credit note. When in doubt, obtain approval. • Credit notes must be published directly to Xero — not through ApprovalMax. • Credit notes must be entered into Fastbuild simultaneously to ensure both systems remain in sync. IC-013 [Preventive Control]: Cross-referencing credit notes to original invoices prevents processing of fraudulent or duplicate credits, a common fraud method.
17 5.8 Balance Sheet Reconciliation Policy Balance sheet reconciliations are a fundamental control that ensures the general ledger accurately reflects the company's financial position. • All balance sheet schedules must be reconciled monthly, due by the 15th of the following month. Year- end reconciliations must follow the closing schedule. • Each reconciliation must include: reconciliation worksheet, supporting documents, variance explanations, approval signatures, and action items. • Segregation of duties is mandatory: the preparer and the reviewer must be different individuals. The Finance Manager must provide final sign-off. • Unexplained variances, missing documentation, and delayed reconciliations are red flags that must be reported to the Finance Manager immediately. • Intercompany balances must be matched and verified with group entities each month. Differences must be documented and resolved. IC-014 [Detective Control]: Independent review and sign-off by a different individual from the preparer ensures that errors or irregularities are detected before the reconciliation is finalised. 5.9 Payment Scheduling Policy Payment scheduling is the final control point before cash leaves the company. This policy ensures that no payment is made without proper authorisation, reconciliation, and verification. • No supplier payment may be scheduled unless the reconciliation checklist is fully verified and the reconciliation is highlighted GREEN. • Only invoices from reconciled suppliers highlighted in GREEN may be selected for payment. Amber or red-highlighted reconciliations must be resolved before payment. • Payment dates must be confirmed with the Finance Manager before final processing. • Invoices with PBA or RET notations must not be scheduled for payment by accounts team members. These require separate authorisation. • Bank details on invoices must be cross-checked against current month, prior month, and supplier statement before payment is scheduled. Any discrepancy triggers the supplier onboarding procedure. IC-015 [Preventive Control]: Green-highlighted reconciliation as a prerequisite for payment ensures that no supplier is paid unless their account has been fully reconciled and verified. This prevents overpayments and duplicate payments. IC-016 [Preventive Control]: PBA and RET notation blocking prevents premature payment of invoices subject to progress billing adjustments or retention holds. Example of Aged Payables - Reconciliation Below
18 5.10 Retention Management Policy Retention amounts represent a significant financial exposure and must be carefully tracked, reconciled, and released in accordance with contract terms. • Retention reconciliation must be performed quarterly, with the opening balance verified against the prior period closing, all transactions matched to source documents, and variances investigated and documented. • Red flags — unexplained variances, missing documentation, delayed reconciliations, recurring errors, and unapproved adjustments — must be reported to the Finance Manager immediately. • Retention releases must be authorised by the appropriate project manager and documented with the release date, amount, and reason. IC-017 [Detective Control]: Quarterly retention reconciliation with opening balance verification ensures that retention balances are accurate and that no unauthorised releases have occurred. 5.11 Offshore Team Coordination Policy Effective coordination between the onsite and offshore teams is essential for timely and accurate invoice processing. • All invoices must be reviewed, actioned in Dext, and exported to CSV (with "Don't Convert" selected) before being sent to the offshore team. • Invoice numbers must be colour-coded by category: Commercial (Green), Site Orders (Red — notation "Siteorder"), PO/No PO requiring approval (Red — notation "No PO"), PO No Approval (Red). • Files must be saved in Teams using the date format [Date sent to offshore team] in the correct subfolder (Site Order Publishing, Residential Publishing, Commercial Publishing).
19 • The offshore team must be notified via Teams with the standardised subject line and message. Files must be attached to the notification. • All steps must be completed before the offshore team is notified. Premature notification is a procedural violation. IC-018 [Preventive Control]: Mandatory colour-coding and file naming standards ensure that the offshore team can correctly categorise and process invoices without misinterpretation, reducing the risk of coding errors.
20 6. Daily Operating Procedures This section contains detailed step-by-step procedures for all daily tasks. Every procedure follows a consistent format: purpose, prerequisites, step-by-step instructions with embedded controls, audit trail requirements, and exception handling. All team members must execute these procedures exactly as documented. 6.1 SOP-001: Invoice Publishing to Platforms Purpose This is the master daily procedure governing the end-to-end invoice lifecycle from email receipt through to Xero publishing. It covers email management, printing, Dext upload, Fastbuild PO verification, Dext publishing to ApprovalMax, ApprovalMax-to-Xero processing, and credit note handling. Frequency: Daily Part A: Accounts Email Box Management Step 1: Email Processing • Action all incoming emails in the accounts email box. • Apply colour labels for team member assignments. • Print all invoices by Close of Business (COB) daily. • Address all queries by month-end. IC-019 [Directive Control]: Colour-coded email labels create a visual control that prevents invoices from being overlooked or processed by the wrong team member. Part B: Invoice Printing and Sorting Step 2: Print and Categorise • Only print weekly paid invoices. Colour code them in the email box. • Separate into categories: Weekly invoices, Subcontractor invoices, 30-day EOM invoices. • Place in appropriate trays for publishing. Part C: Dext Upload Process Step 3: Upload to Dext • Upload invoices from the accounts email box to Dext. • Mark emails as complete after uploading. • Process can handle both individual and multiple documents. Audit Trail: Dext records upload timestamp, source, and user ID automatically. Email completion marking creates a secondary control confirming upload.
21 Part D: Fastbuild Purchase Order Verification Step 4: Verify PO in Fastbuild • Locate the PO Number on the invoice or find it in the job under the supplier. • Enter the Purchase Order Number in Fastbuild. Verify supplier details match. • Check the trade code is correct. • Access the bill tab and enter invoice details: Invoice Date, Invoice Number, Amount. • Note the residual PO amount for Dext publishing. IC-020 [Detective Control]: Residual PO amount tracking provides a running balance control that prevents invoices from exceeding authorised PO values. Part E: Dext Publishing to ApprovalMax Step 5: Review and Publish • Review and correct any errors in "To Review" and "Processing" sections. • Verify and input: Date (within current month), Supplier Name, Document Reference, Category (Chart of Accounts Matrix), Total Amount, Tax Information, Description (JobNumber - TCTradeCodeNumber), Integration (set to ApprovalMax). • Assign the Construction invoice approver per the Invoice Approval Matrix. • Complete final review and publish to ApprovalMax. IC-021 [Preventive Control]: Mandatory field completion check before publishing ensures no incomplete invoice enters the approval workflow, preventing processing delays and rework. Part F: ApprovalMax to Xero Process Step 6: Process Approvals • Monitor "Requires my Decision" section throughout the day. • Check for approver instructions. • Process special cases: credit requirements, payment holds, retention amounts, job number/trade code changes, PBA additions. • Complete all approvals/actions by COB and start of business. Audit Trail: ApprovalMax logs all approval actions with timestamps, approver IDs, and comments. Special case notations are recorded in the comments field. Part G: Credit Note Handling Step 7: Process Credit Notes • Upload credit notes to Dext via the accounts email box. • Keep under "To Review" until Xero publishing. • Verify: existence of correlating invoice, need for supervisor/project manager approval. • Publish directly to Xero (not through ApprovalMax). • Enter credit notes into Fastbuild simultaneously.
22 IC-022 [Preventive Control]: Credit notes kept under "To Review" until Xero publishing provides a holding control that prevents premature processing before verification is complete. Note: Follow proper documentation formatting for all entries. Refer to the appropriate matrix for approvals and accounts. Process new suppliers according to SOP-008. Maintain regular monitoring throughout the day. 6.2 SOP-002: Publishing Site Order Invoices Purpose This procedure governs the processing of supplier invoices purchased via a site order purchase order, ensuring correct PO matching, coding, approver assignment, and ApprovalMax publishing with supporting comments. Step 1: Initial Invoice Processing • Confirm the invoice has been received into Dext. Verify the invoice was purchased via a site order purchase order. Step 2: Locate PO Information • Onsite: Navigate to Employment Hero > Asset Register, search for the PO number in "AssignedTo". Offshore: Refer to the "Site Order Book — Current Listing" document (use the latest version). Step 3: Review and Correct Invoice Data • Review all items in "To Review" and "Processing" sections of Dext. Correct any identified errors. Step 4: Verify and Input Details • Date: within current processing month. Supplier Name: verify. Document Reference: complete. Category: Chart of Accounts Matrix. Total Amount: verify. Tax: correct codes. Description: "JobNumber - TCTradeCodeNumber". Integration: ApprovalMax. Step 5: Assign Approver • Commercial: assign to the appropriate project manager. Residential: assign to the "Assigned To" person in the Site Purchase Order Book. Step 6: Publish and Comment • Complete final review. Publish to ApprovalMax. In comments, include the site order number and site order book owner name. IC-023 [Directive Control]: Mandatory ApprovalMax comments with site order number and owner create an additional cross-reference that auditors can use to verify the legitimacy of the purchase.
23 6.3 SOP-003: Dext Preparation for Offshore Team Purpose This procedure ensures the onsite team prepares and transfers invoice data to the offshore team in a complete, colour-coded, and properly filed format. Step 1: Initial Preparation • Open Dext and ensure it is up to date. Action all items in the review queue. Step 2: Export from Dext • Navigate to Tools > Export All > CSV File > Export > Download. Select "Don't Convert" when prompted. Step 3: Colour Code • Commercial: Green. Site Orders: Red (notation "Siteorder"). PO/No PO Requiring Approval: Red (notation "No PO"). PO No Approval: Red. Step 4: Save in Teams • Navigate to the relevant month folder. Name with date format. Save in Site Order Publishing, Residential Publishing, or Commercial Publishing subfolder. Step 5: Notify Offshore Team • Send Teams message with subject "New Invoice Files Ready for Processing - [Date]", message "New files are now ready for action. Please find attached copies." Attach the files. IC-018 [Preventive Control]: Colour-coding and standardised naming ensure consistent categorisation by the offshore team. 6.4 SOP-004: Job Cost Reconciliation Purpose This procedure establishes the systematic process for reconciling job costs between Xero/ApprovalMax and Fastbuild, ensuring financial records accurately reflect the true cost of construction projects. Step 1: Extract from ApprovalMax • Log into ApprovalMax > Line Item Reports > job-specific cost report. Set date parameters. Filter by job number. Include all approved costs. Export to Excel. Sort by trade codes. Step 2: Extract from Fastbuild • Log into Fastbuild > Job Cost Reports > relevant job. Set matching date parameters. Export to Excel. Sort by trade codes. Include all posted costs. Step 3: Compare Reports
24 • Create reconciliation worksheet. Match costs between systems. Identify variances: missing costs, timing differences, coding discrepancies, amount differences. Step 4: Document Discrepancies • List unmatched items. Note reasons for variances. Track missing entries. Document timing differences. Step 5: Manage Trade Code Changes • Receive revision requests. Document changes. Verify authority. Note reasoning. Update trade codes in both systems. Maintain audit trail. Step 6: Resolve Outstanding Items • Investigate unmatched items. Track down missing documentation. Process pending approvals. Update systems. Verify changes are reflected. Step 7: Document and Report • Save worksheets. File supporting documents. Prepare variance reports. Summarise results. Note outstanding items. Step 8: Quality Control • Verify proper cost allocation. Ensure correct trade codes. Check mathematical accuracy. Review unusual variances. Confirm proper approvals. IC-010 [Detective Control]: Independent system-to-system reconciliation detects processing gaps and coding errors. Example – Job Cost Analysis
25 6.5 SOP-005: Import Invoices — Approval Max / Fastbuild Purpose This procedure governs the weekly import of approved invoices from Approval Max into Fastbuild, ensuring all errors are corrected, duplications are identified, and the import is formally reported to the Finance Manager. Frequency: Weekly Phase 1 — Correct Errors Step 1: Receive Confirmation • Finance Manager advises that the import is ready for processing. Step 2: Open Fastbuild • Navigate to the Enter Bills section. Step 3: Open Approval Max Imports • Locate and open the Approval Max Imports module. Step 4: Select Most Recent Import • Open the import dated for the relevant week. Step 5: Filter and Correct Errors • Filter: With Errors – Not Exported to Bills. Enter search. • Review each error entry and correct as required. Phase 2 — Review & Import Step 6: Review Clean List • Filter: Without Errors – Not Exported. Enter search. • Review the full list for accuracy before proceeding. Step 7: Execute Import • Import the invoices into Fastbuild. Phase 3 — Post-Import Checks & Reporting Step 8: Snip the Imported List • Take a screenshot of the imported invoice list for records. Step 9: Record Invoice Count • Note the total number of invoices imported.
26 Step 10: Record Correction Count • Note the total number of corrections made during Step 5. Step 11: Check for Duplications • Scan the imported list for any duplicate invoices. • List any duplications found (invoice number, vendor, amount). Step 12: Snip Example Job Imports • Take screenshots of at least 3 job imports as examples. Step 13: Email Finance Manager • Send an email confirming: import complete, duplication check complete. • Attach: snipped list, example job imports, duplication details (if any). Step 14: Save Documentation • Save the email (as PDF) and all screenshots to: EOM Checks file → under the relevant month folder. IC-032 [Detective Control]: Weekly duplication check and formal import reporting to Finance Manager ensures imported invoices are verified, errors are corrected, and duplicate entries are identified before reconciliation. Example – Email to Finance Manager & Save PDF Internal Control Files
27 6.6 SOP-006: Land & Development Cost Allocation Purpose This procedure ensures development-related costs are captured separately from regular build costs using the DEXT category and specific asset codes. Step 1: Check Invoice Details • Identify if the invoice relates to any of the specified development lots. Step 2: Match Property to Asset Code • Use the Asset Code Reference Table to match the property to the corresponding asset code. Property Asset Code Lot 477, Lot 477 Lutz Lane, Bellevue 666/016 Lot 9, Abundant Blvd, Glen Iris Estate 666/017 Lot 616, Tadema Rd, The Rise, Ashby 666/018 Lot 352, Bevel Road, Millars Landing 666/019 Lot 535, Cuttlefish Drive, Dawson Estate, Vasse 666/020 Lot 4058, Crinia App, The Glades, Byford 666/021 Lot 71, Uluwatu Approach, Margaret River 666/022 131 Dixon Road 628 Step 3: Enter the Code in Dext • Category: DEXT. Asset Number: corresponding 666/0XX (or 628). Step 4: Continue Until Notified • Keep using these codes until the Finance Manager advises development is complete. No changes without Finance Manager authorisation. IC-006 [Preventive Control]: Locked coding structure with Finance Manager-only override prevents misallocation. 6.7 SOP-007: Bunnings Powerpass Procedures Purpose This procedure outlines the requirements for Bunnings Powerpass card usage, ensuring every purchase is allocated to a valid job, supervisor, and cost code. Step 1: Prepare Required Information • Before purchase, have ready: Shelford Supervisor Name, Shelford Job Number, Shelford Cost Code (Bunnings Order Number).
28 Step 2: Provide Details at Point of Sale • Provide the Shelford details to the Bunnings representative. Confirm details are correctly recorded. Step 3: If Details Not Available • Contact your manager immediately. Clarify allocation before completing the transaction. Do not leave Bunnings until the cost has been correctly allocated. Step 4: Important Notice • Misuse of your Bunnings Card will result in the card being suspended. IC-011 [Preventive Control]: Mandatory cost allocation at point of sale prevents unallocated costs. 6.8 SOP-008: New Supplier/Contractor Onboarding Purpose This procedure establishes the mandatory verification steps for onboarding new suppliers and contractors, preventing fictitious suppliers, incorrect banking details, and payment redirection fraud. Step 1: Business Details Form Verification • Receive Business Details Form via Accounts Email. Verify all information is complete and legible. Validate ABN via ABR website (ABN Lookup). Cross-check: Company Name, GST Status, ABN Number. Contact supplier if any discrepancies found. Step 2: System Entry • Enter details into Xero (excluding banking information at this stage). Enter details into Fastbuild (excluding banking information). Attach Business Details Form copy to Xero Contact. Step 3: Banking Verification — Verbal • Contact supplier using the provided phone number. Request verbal confirmation of banking details. Record: name of person providing confirmation, date of confirmation. Update Xero contact with verification details. Step 4: Banking Verification — Documentary • Request a bank-branded document (bank cheque, quick deposit slip, or statement extract). Update Xero contact when document is requested and when received. Attach banking document copy to Xero Contact. Step 5: Banking Information Update • Complete the 4Factor security check. Update banking information in Xero contact under Financial details. Step 6: Test Payment Process
29 • Request $1 test payment from Finance Manager. Wait for CBA Bank Details confirmation from Finance Manager. Attach CBA confirmation to Xero Card. Obtain confirmation from supplier regarding test payment receipt. Update Xero contact with payment confirmation. Step 7: Completion • Mark onboarding process as complete. Enable regular payment processing as per agreed terms and conditions. IC-007 [Preventive Control]: Independent banking verification (verbal + documentary) prevents payment redirection fraud. IC-008 [Preventive Control]: Test payment with CBA confirmation provides independent verification of banking details. Audit Trail: ABR verification record, verbal confirmation log (name, date), banking document attachment, 4Factor security check record, CBA test payment confirmation, and supplier receipt confirmation are all documented in Xero contact history. 6.9 SOP-009: Creating a New Contact Job — Fastbuild Purpose This procedure ensures consistent and accurate creation of new client contacts in both Fastbuild and Xero for residential construction projects. Step 1: Fastbuild Contact Creation • Open Fastbuild > Contacts > Add. Enter client name using format: "John Alfred Doe & Lee May Doe - Doe JA & LM" (same surname) or "John Alfred Doe & Lee May Smith - Doe JA & Smith LM" (different surnames). Enter phone, fax, mobile, email, postal address. Category: Customer. OLD Account: INCOME FROM JOBS. NEW Account: REVENUE > REVENUE | 230/01 | Construction Income – Residential. Trade: NOT APPLICABLE. Terms: 10 days. Click Exit to save. Step 2: Xero Integration • Copy all relevant details from Fastbuild. Create new contact in Xero with copied information. IC-024 [Directive Control]: Standardised naming format and account classification prevent misallocation of revenue and ensure consistency across systems. 6.10 SOP-010: BP Fuel Card Ordering Purpose This procedure governs the ordering and configuration of BP fuel cards for company vehicles and authorised staff, ensuring proper authorisation, security settings, and purchase restrictions. Step 1: System Access
30 • Navigate to www.bpplus.com.au. Click "BP Plus Online Login". Enter credentials (refer to Vehicle Register for current credentials). Step 2: Card Ordering • Navigate to Cards > Order a Card. Select "Vehicle". Enter vehicle description and registration number. Leave auto-calculated expiry and embossed name unchanged. Step 3: Security Settings • Select "PIN" for identification. Enter PIN: 8429 (company registration number). Confirm PIN. Select "Vehicle ID" box under "Prompt the card holder". Step 4: Purchase Restrictions • Select appropriate fuel type. Lubricants/oil: Yes. Non-fuel groups: No non-fuels. IC-012 [Preventive Control]: Financial Manager authorisation for all new cards and standardised PIN/security settings prevent unauthorised card usage. Note: All cards must use the standard PIN. Financial Manager approval is required for new card orders and amendments.
31 6.11 SOP-011: Proscan/Procure Upload & Publishing Process Purpose This procedure governs the end-to-end process of saving approved commercial invoices from ApprovalMax to Proscan, uploading them to the Proscan application, and publishing them to Procure/Procore. It ensures proper document storage, accurate data entry, and consistent publishing workflows for commercial project invoices. Frequency: Daily This process applies to: Commercial ApprovalMax Only Part A: Saving Approved Invoices — Commercial Invoice Storage Step 1: Verify Approval Status • Ensure the invoice has been initially part approved in ApprovalMax before proceeding Step 2: Access Invoice Document • Open the attached invoice document from ApprovalMax Step 3: Save Invoice to Network Folder • File Path Structure: • OFFICE > ACCOUNTS > PROSCAN > [Relevant Month Folder] • Instructions: • Navigate to: OFFICE\ACCOUNTS\PROSCAN • Select the appropriate month folder (e.g., January, February, etc.) • Save the invoice document into this folder Step 4: Special Handling for PBA Invoices — Final Approve • IMPORTANT: If the invoice is marked as 'PBA' (Payment By Arrangement): • Open Xero • Locate the invoice • Update the invoice number in Xero to match the correct reference — 'INVNUM PBA JN' Step 5: Complete ApprovalMax Process • Return to ApprovalMax • Perform final approval to complete the workflow Part B: Uploading Invoices to Proscan Step 1: Access Proscan Application • Open the Proscan application Step 2: Select Pending Invoices
32 • Identify and select invoices that have not yet been uploaded Step 3: Upload to MyScans • Method: Drag & Drop • Drag the invoice files from the month folder • Drop them into 'MyScans' section in Proscan • Select the SCAN option to process Part C: Publishing Invoices from Proscan to Procure Step 1: Navigate to Invoice in Proscan • Go to File menu in Proscan • Select the relevant month folder • Open the PDF invoice document Step 2: Access MyScans • Open MyScans section • Key in the Invoice Number to locate the invoice • Open the invoice in a new tab for reference Step 3: Cross-Reference with ApprovalMax • Open ApprovalMax in another tab • Key in the same Invoice Number to locate the matching record Step 4: Follow Project Instructions • In ApprovalMax, follow the specific instructions provided by: • Project Manager, OR • Contract Administrator Common instruction examples include: Option A: Cost Invoice to Purchase Order • Link the cost invoice to an existing purchase order • Follow the designated PO matching process Option B: Cost Invoice to Direct Costs • Process the invoice as a direct cost entry • Allocate to the appropriate cost center or project code Step 5: Complete Procure Fields • The following fields must be completed in Procure: • Invoice Number: This should correlate with the invoice number on the scanned document • Project: The project should be as directed on ApprovalMax • Invoice Type: Invoice Type will either be DIRECT COST or Progress Claim (Purchase Order) as per direction on ApprovalMax
33 • Vendor Name: This will be as per ApprovalMax • Status: This will be 'Approved' • Billing Period: Last available billing period • Invoice Date: As per ApprovalMax • Due Date: 30 days EOM Once all data has been completed and purchase order has been filled or direct costs matched, SAVE. Then publish to Procore. Audit Trail: ApprovalMax approval timestamps, Proscan upload records, Procure field entries, and Procore publishing confirmation provide a complete audit trail from approval through to project cost recording. 7. Monthly Operating Procedures This section contains the detailed procedures for all monthly tasks. These procedures are critical for month- end financial integrity and must be completed by their respective deadlines. 7.1 SOP-012: End-of-Month Job Cost Duplicate Checks Purpose This procedure establishes the month-end process for identifying, investigating, and correcting duplicate job cost transactions within the FastBuild system. The objective is to ensure the integrity of project cost data and support accurate financial reporting and project management decisions. Frequency: Monthly Responsibilities Accounts Officer: Executes the month-end job cost detail report, conducts the duplicate transaction review, verifies flagged items against supporting documentation, reverses or corrects confirmed duplicate entries, maintains records of the review process and corrective actions taken, and escalates unusual, material, or unresolved items to the Finance Manager. Finance Manager: Advises when to commence the month-end review process, reviews and approves unusual, material, or unresolved items, authorises the reversal or correction of duplicate entries, ensures the procedure is followed consistently each month, and conducts periodic reviews of the procedure's effectiveness. Procedure 4.1 Run the Report Step 1: Initiation
34 Upon receipt of advice from the Finance Manager that all current period transactions have been posted, the Accounts Officer shall proceed with the month-end job cost review. Step 2: Report Generation • Generate the FastBuild month-end job cost detail report for the current period. • Ensure the report includes all transaction types: invoices, subcontract claims, purchase orders, labour entries, journal entries, and creditor transactions. • Include complete transaction details: supplier, invoice number, date, amount, job number, and cost code. • Include current period transactions only. • Select the appropriate Date and Heading in FastBuild to generate the report. Step 3: Report Verification • Confirm that the report reflects all current period transactions. • If any transactions are missing or appear incomplete, consult with the Finance Manager before proceeding. Step 4: Documentation • Record the following details in the monthly review log: report generation date and time, period covered by the report, name of the Accounts Officer generating the report, and any discrepancies noted during report generation. 4.2 Check for Duplicates Step 5: Review Criteria • Review all transactions in the report for potential duplicates by examining the following fields: supplier name, invoice number, transaction date, transaction amount, job number, and cost code. Step 6: Transaction Type Focus • Invoices – Check for identical invoice numbers from the same supplier. • Subcontract claims – Verify claim numbers and amounts. • Purchase orders – Identify duplicate PO numbers or matching line items. • Labour entries – Review for duplicate timesheet entries or identical labour charges. • Journal entries – Check for duplicate journal references or identical entries. • Creditor transactions – Verify creditor reference numbers and amounts. Step 7: Identification of Potential Duplicates • Flag any transactions with exact matches across all six fields (supplier, invoice number, date, amount, job number, cost code). • Flag near-matches where five or more fields are identical. • Flag identical invoice numbers from the same supplier with identical amounts. • Flag identical transaction amounts with the same supplier and job number on the same date. • Flag sequential invoice numbers from the same supplier with identical amounts and job numbers.
35 Step 8: Documentation of Flagged Items • For each flagged transaction, record the following in the duplicate review worksheet: transaction ID, supplier name, invoice/reference number, transaction date, transaction amount, job number, cost code, transaction type, reason for flagging (e.g., exact match, near-match, identical invoice number), and status (pending review, under investigation, confirmed duplicate, valid). 4.3 Verify Flagged Items Step 9: Source Document Retrieval • For each flagged transaction, retrieve the corresponding supporting documentation, which may include: original supplier invoices, subcontract claim forms, purchase order copies, timesheets or labour records, journal entry supporting schedules, and creditor statements. Step 10: Verification Process • Compare each flagged transaction against the supporting documentation to determine whether the transaction is valid and should remain in the system, whether the transaction is a duplicate that requires correction, or whether the transaction is an error requiring reversal and re-entry. Step 11: Verification Criteria • A transaction is considered a duplicate if: the same invoice has been entered twice in FastBuild, the same subcontract claim has been recorded multiple times, a purchase order has been duplicated in the system, labour entries have been posted more than once for the same work, a journal entry has been duplicated, or a creditor transaction has been recorded twice. Step 12: Documentation of Verification Outcomes • Update the duplicate review worksheet with the following for each verified item: verification date, name of the Accounts Officer conducting the verification, outcome (valid, duplicate, error), supporting documents referenced, and detailed notes explaining the verification decision. 4.4 Correct Errors Step 13: Approval for Corrections • Before correcting any confirmed duplicate entries, obtain approval from the Finance Manager. • Document the approval in the duplicate review worksheet, including: approval date, name of the approving Finance Manager, and specific correction authorised. Step 14: Correction Methods • Reversal – Reverse the duplicate entry in its entirety. • Correction – Adjust the duplicate entry to reflect the correct amount or details. • Deletion – Delete the duplicate entry if permitted by system controls and approved by the Finance Manager. Step 15: Execution of Corrections
36 • Execute the approved corrections in FastBuild, ensuring: the correct transaction is retained in the system, the duplicate transaction is removed or corrected, all corrections are made before month-end finalisation, and the system audit trail captures all corrections made. Step 16: Documentation of Corrections • Record the following details for each correction made: correction date and time, name of the Accounts Officer executing the correction, correction method used (reversal, correction, deletion), transaction IDs affected, and reference to Finance Manager approval. 4.5 Reconcile and Finalise Step 17: Reconciliation • After all corrections have been made, regenerate the FastBuild month-end job cost detail report. • Verify that all flagged duplicate items have been addressed. • Confirm that no new duplicates have been introduced during the correction process. • Reconcile the updated report totals to the general ledger. • Ensure the report balances and is complete. Step 18: Final Review • Conduct a final review of the reconciled report to confirm: all exceptions have been resolved, all corrections have been properly documented, the report is accurate and complete, and month-end finalisation may proceed. Step 19: Finalisation • Only after confirming that all exceptions have been addressed and the report is accurate, proceed with month-end finalisation in FastBuild. Step 20: Documentation of Finalisation • Record the following in the monthly review log: finalisation date and time, name of the Accounts Officer finalising the month-end, confirmation that all exceptions were resolved, and any outstanding items or notes for future reference. Exceptions and Escalation Any transaction that appears unusual, irregular, or outside normal business parameters must be escalated to the Finance Manager for review before month-end closure. This includes transactions with unusually large amounts, transactions from new or unknown suppliers, transactions with incomplete or missing documentation, and transactions that do not align with project budgets or expectations. Any duplicate or error that is material in nature (as defined by the organisation's materiality policy) must be escalated to the Finance Manager for review and approval before correction. Any flagged item that cannot be verified or resolved through normal procedures must be escalated to the Finance Manager. The Finance Manager will determine whether additional investigation is required, whether the item should be provisionally accepted pending further information, whether the item should be written off or adjusted, or whether external verification (e.g., supplier confirmation) is required.
37 Document all escalations in the duplicate review worksheet, including: date of escalation, item details, reason for escalation, Finance Manager response and instructions, and resolution outcome. Records and Review Retain the following records in accordance with financial control and record-keeping requirements: FastBuild month-end job cost detail reports (original and reconciled versions), duplicate review worksheets, monthly review logs, supporting documentation for verified items, approval records for corrections, and escalation documentation. • Save all reports and documentation under the relevant month folder using the naming convention: [Year]\[Month]\FastBuild Job Cost Duplicate Checks_[YYYY-MM] • Ensure that all actions taken during the duplicate review process are captured in the FastBuild system audit trail, including: report generation, transaction flagging, verification activities, corrections made, and approvals obtained. IC-033 [Detective Control]: Monthly systematic duplicate detection across all transaction types (invoices, subcontract claims, purchase orders, labour, journals, creditors) using multi-field matching criteria prevents duplicate costs from distorting project and financial reporting. IC-034 [Preventive Control]: Finance Manager approval required before any duplicate correction is executed in FastBuild prevents unauthorised or incorrect adjustments to job cost data. Example – Fastbuild Report Selection
38 7.2 SOP-013: Supplier Statement Reconciliation Purpose This procedure ensures that supplier balances in Xero agree with supplier statements, identifying and resolving discrepancies before month-end closing. It is a key detective control that prevents overpayments, duplicate payments, and unrecorded cost of sales. Step 1: Prepare AP Aged Report • Receive Version 1 AP Aged Report from Finance Manager. Save file under: ../Supplier Reconciliations/2025/[Month] 2025. Step 2: Organise Files • Split suppliers alphabetically: A-K and L-Z. Create new month's file from previous month's template. Remove old aged payables. Insert new Version 1 data. Step 3: Review Xero AP Ledger • Navigate to Purchase Overview > Awaiting Payment. Set search: Supplier Name, Start Date (1st of month), End Date (last day of month), Date Type: Transaction date. Step 4: Collect Statements • Monitor accounts email box for supplier statements. File under "inbox - Statements" in the respective month. Request statements from suppliers if not received. Upload all statements to Dext under the statement section. Step 5: Follow Up on Missing Statements • Contact suppliers via email/phone for missing statements. Engage project managers if necessary. Ensure source document is received for every supplier monthly. Step 6: Perform Initial Reconciliation • Follow the Excel template for each supplier. Enter AP ledger total and supplier statement total. Compare end balances. Check bank account details on invoices (current month vs. prior month). Step 7: Analyse Variances • Check for: missing invoices, different values, missing credit notes, timing differences, human errors, wrong supplier postings. Step 8: Resolve Differences • Identify causes of variances. Request missing documentation. Adjust supplier invoices if needed. Verify payment receipts. Correct posting errors. Recheck final balances after corrections. Step 9: Final Verification • Wait for Version 2 AP Aged Report from Finance Manager. Perform final reconciliation check. Ensure all differences are resolved. Verify final balances match.
39 Step 10: Cross-Check Reconciliations/Payments • Cross-check EOM reconciliations. Do not schedule your allocated rec’s that you have completed. These must be cross-checked and scheduled by another accounts team member. Schedule payments accordingly. Follow up on held payments. Check banking information: cross-check with current month invoices, prior month invoices, and statement. Follow Business Setup Procedure if any details have changed. IC-009 [Detective Control]: Monthly cross-check of bank details/reconciliations during supplier reconciliation detects unauthorised changes to supplier banking information & supplier statements provided IC-025 [Detective Control]: Version 2 AP Aged Report provides an updated baseline for final verification, ensuring that late-posted transactions are captured before reconciliation sign-off. Example of Supplier Statement Reconciliation 7.3 SOP-014: Supplier Statement Preparation Purpose This procedure ensures all supplier statements are received, uploaded, and verified at the start of each month, with missing invoices and unapproved invoices identified and actioned before the accounts cut-off date. Step 1: Receive Supplier Statements • Monitor designated email inbox. Download all statements received during the first week of the month. Step 2: Upload to Dext • Upload all statements to the appropriate supplier accounts. Label with supplier name and statement period.
40 Step 3: Verify Invoices • Review each statement to verify all invoices are received in the system and approved for payment. Step 4: Action Missing Invoices • Contact supplier immediately via phone. Request copy of missing invoice(s). Upload to Dext and publish following standard procedures. Step 5: Action Unapproved Invoices • Identify the designated approver. Contact approver immediately. Request approval before accounts cut-off date. Follow up daily until approval is obtained. Step 6: Document in Dext • In Dext Statements > Notes field, record: missing invoices and actions taken, approver follow-up actions and dates, resolution status and completion dates, outstanding issues. IC-026 [Preventive Control]: Daily follow-up on unapproved invoices before cut-off ensures no invoice is left unapproved at month-end, preventing unrecorded liabilities. 7.4 SOP-015: Checking & Scheduling EOM Supplier Payments * Cross-Check Purpose This procedure is the final payment control gate. It ensures that no supplier payment is scheduled unless the supplier's reconciliation has been fully verified, all checklist items pass, and the payment is authorised by the Finance Manager. The team member that reconciled the supplier statement cannot schedule the payment. This must be cross-checked by another accounts team member. This establishes a separation of duties between reconciliation and schedule of payment. Step 1: Reconciliation Verification • Open the relevant supplier reconciliation folder for the month. Complete the Reconciliation Checklist: Checklist Item Verification Required 1. Source Document Verification Supplier source document present for reconciliation month; correct reporting period 2. Bank Details Validation Bank details complete and accurate for current month; cross- checked against prior month 3. Statement Balance Reconciliation Supplier statement balance matches source document amount; discrepancies flagged 4. Xero Transaction Balance Xero transaction balance aligns with reconciliation schedule; all transactions properly recorded 5. Amount Balance Confirmation All amounts balance correctly; mathematical accuracy verified
41 6. Authorization Check Reconciliation owner has initialed the document Step 2: Schedule Payments in Xero • Navigate to Purchases > Purchase Overview > Awaiting Payment. Search: Supplier Name, Start Date (1st of month), End Date (last day of month), Date Type: Transaction Date. Only select suppliers whose reconciliations are highlighted GREEN. Select eligible invoices ready for payment as per reconciliation. Select invoices under the payment date specified by Finance Manager. IC-015 [Preventive Control]: GREEN-only payment scheduling prevents payment of unreconciled or disputed supplier balances. Once scheduled the reconciliation tab will be BLUE IC-016 [Preventive Control]: PBA and RET notation blocking prevents premature payment of invoices subject to progress billing adjustments or retention holds. Note: Do not proceed if any checklist item fails. Only process GREEN-highlighted reconciliations. Confirm payment dates with Finance Manager. Invoices with PBA or RET notations must not be scheduled by accounts team members (e.g., INV- 0586 PBA 1217HAY, 52523 RET). 7.5 SOP-016: BAS - Add back date checks Purpose This procedure verifies the accuracy of invoice dates in the Cost of Sales report, ensuring all invoices reflect the correct actual date and that exceptions are documented for management review. Step 1: Initial Report Review • Open the Cost of Sales Excel Report. Ensure fully loaded and correct period. Save a backup copy of the original report. Step 2: Systematic Invoice Examination • Begin with first invoice entry. Locate the "Actual Date" on the attached invoice via ApprovalMax. Examine each entry sequentially, row by row. Step 3: Date Verification • For each invoice, check if actual date matches expected date. If matches: no action, proceed. If does not match: proceed to exception notation. Step 4: Exception Notation • Highlight the entire row. Add a comment or highlight. Record: invoice number, actual date shown, row number. Create running count of exceptions. Step 5: Documentation • Maintain exception log: Exception Number, Invoice Number, Incorrect Date, Row Number, Notes. Number sequentially. Step 6: Completion Verification
42 • Verify every invoice has been examined. Verify all exceptions noted. Count total invoices reviewed and total exceptions. Double-check exception count matches documentation. Step 7: Final Report Preparation • Add summary: total invoices reviewed, total exceptions, date of review, reviewer name. Save with clear filename. Step 8: Standby for Instructions • Do not take corrective action on exceptions. Prepare report for submission. Await next steps from supervisor. Keep original and annotated versions accessible. IC-027 [Detective Control]: 100% invoice examination with documented exception log ensures completeness of the review and provides auditors with evidence of thorough verification. 7.6 SOP-017: Balance Sheet Schedules Reconciliation Purpose This procedure ensures all balance sheet accounts are reconciled monthly by the 15th of the following month, with full documentation, variance explanations, and approval sign-offs. Schedule Key Components Reconciliation Steps Bank Reconciliations Bank statements, GL reports, outstanding cheques, deposit records, electronic payments Compare bank balance to GL; list outstanding items; investigate unmatched transactions; document timing differences; note bank errors Accounts Receivable Customer balances, aged trial balance, unapplied payments, credit memos, progress claims Match subsidiary ledger to GL; review aging; document collection efforts; note disputed amounts; track write-off approvals Accounts Payable Vendor statements, AP aging, unpaid invoice listing, payment records, credit notes Compare vendor statements to GL; review aging; document disputed items; track payment timing; note credit applications Fixed Assets Asset additions, disposals, depreciation, categories, location records Match asset register to GL; verify depreciation entries; document additions/disposals; review useful life estimates Work in Progress Project costs, progress claims, variations, contract values, retention amounts Review project costs; match to contract values; track variations; document progress claims; monitor retention releases Loan Accounts Loan statements, interest calculations, repayment schedules, covenant compliance Review loan statements; check interest calculations; monitor repayment schedule; track covenant compliance
43 Step 1: Documentation & Filing • For each schedule: reconciliation worksheet, supporting documents, variance explanations, approval signatures, action items. File electronically and in hard copy. Maintain audit trail and change history. Step 2: Review & Approval • Preparer sign-off → Reviewer check → Management approval → Query resolution → Final sign-off. IC-014 [Detective Control]: Segregation of duties: preparer and reviewer must be different individuals. Finance Manager provides final sign-off. IC-028 [Directive Control]: Standardised documentation requirements ensure every reconciliation has a complete, auditable evidence pack. 7.7 SOP-018: Statutory Declaration Procedure Purpose This procedure ensures proper preparation, processing, and filing of statutory declarations required for Department of Community jobs. Step 1: Initial Request • Receive request from Construction team via direct email or list of required statutory declarations. Note: only required for Department of Community jobs. & Commercial Step 2: Document Preparation • Navigate to Q:\OFFICE\Accounts\Statutory Declaration. Locate specific job folder (create if needed). Save as: [Job#] - Statutory Declaration Payment to Subcontractors and Suppliers Claim [#]. Update progress claim number and date. Step 3: Subcontractor Information • Open Fastbuild Jobs > search job number > Reports > set date range from last stat dec to current date. Select up to six subcontractors. Copy contact details (always list name as "Accounts Department"). Step 4: Signatures • Obtain Finance Manager signature. Get secondary signature from Inhouse Lawyer or Structural Engineer. Step 5: Filing • Save scanned copy in Statutory Declarations folder • IC-029 [Preventive Control]: Dual-signature requirement for statutory declarations ensures proper authorisation and legal compliance.
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45 8. Quarterly Operating Procedures This section contains the procedures for quarterly tasks. These procedures are critical for period-end financial integrity and must be completed within the prescribed timeframes. 8.1 SOP-019: WIP Reconciliation Purpose This procedure ensures that Work in Progress balances are accurately reconciled between ApprovalMax, XERO and Fastbuild on a quarterly basis, providing reliable WIP figures for financial reporting. The Finance Manager provides the report of all current jobs requiring reconciliation, and the process must be completed within 5 working days. Step 1: ApprovalMax Cost Extraction • Log into ApprovalMax > Line Item Reports > job-specific cost report. Set date parameters. Filter by job number. Include all approved costs. Export to Excel. Step 2: Fastbuild Cost Extraction • Log into Fastbuild > Job Cost Reports > relevant job. Set date parameters matching ApprovalMax. Export to Excel. Sort by trade codes. Include all posted costs. Step 3: Reconciliation • Create reconciliation worksheet. Match costs between systems. Identify variances: missing costs, timing differences, coding discrepancies, amount differences. List all unmatched items. Note reasons for variances. Step 4: Trade Code Review • Receive revision requests. Document changes. Verify authority. Update trade codes in both systems. Maintain audit trail. Step 5: Follow-Up • Investigate unmatched items. Track missing documentation. Process pending approvals. Update systems. Verify changes reflected. Step 6: Documentation & QC • Save worksheets. File supporting documents. Prepare variance reports. Verify proper cost allocation. Ensure correct trade codes. Check mathematical accuracy. Review unusual variances. Confirm proper approvals. IC-030 [Directive Control]: 5-working-day completion deadline ensures WIP balances are current and reliable for quarterly financial reporting. Extended delays increase the risk of material misstatement. WIP Reconciliation Example
46 8.2 SOP-020: Retention Reconciliation & Review Purpose This procedure ensures that retention balances are accurately reconciled quarterly, with opening balances verified, all transactions matched to source documents, and variances investigated and documented. Step 1: Preparation • Gather: Chart of Account Retention Held detail report, subsidiary ledger reports, supporting documentation, prior period reconciliation, source documents. Set up reconciliation worksheet with opening balance, current period transactions, running balance, space for notes/adjustments, variance tracking. Step 2: Initial Review • Verify opening balance matches prior period closing. Note any carried forward items. Document discrepancies. Check for adjusting entries. Review current period activity: list all transactions, note dates, record reference numbers, document transaction types, identify unusual items. Step 3: Detailed Reconciliation • Step 1: Verify opening balance matches prior month closing. Check for adjusting entries. Document variances. Step 2: Review each transaction — match to source documents, verify posting accuracy, check account coding, confirm amounts, note discrepancies. Step 3: Compare supporting documents — match invoices/receipts, check payment records, verify journal entries, review allocation bases, cross-reference to subsidiaries. Step 4: Identify reconciling items — list unmatched items, document timing differences, note coding errors, track missing documents, record necessary adjustments. Step 4: Variance Analysis
47 • Compare Chart of account to supporting records. Identify discrepancies. Quantify variances. Research variances. Document findings. Determine corrections needed. Get necessary approvals. Track resolution. Step 5: Documentation & Filing • Reconciliation worksheet, supporting documents, variance explanations, approval signatures, journal entries. Organise by quarter. Maintain audit trail. Store supporting documents. Archive as required. Step 6: Review & Approval • Self-review for accuracy → Project Manager → Management approval. Document questions/responses. Final sign-off. IC-017 [Detective Control]: Quarterly retention reconciliation with opening balance verification ensures retention balances are accurate and no unauthorised releases have occurred. IC-031 [Detective Control]: Red flag monitoring (unexplained variances, missing documentation, delayed reconciliations, recurring errors, unapproved adjustments) provides an early warning system for control failures. Example of Retention Review
48 9. Compliance, Enforcement & Disciplinary Framework Compliance with the policies and procedures documented in this manual is mandatory for all personnel covered by its scope. The company takes non-compliance seriously because errors, omissions, and policy violations in financial processing can result in inaccurate job costing, delayed payments, audit findings, fraud exposure, and financial loss. 9.1 Compliance Expectations • All team members must read, understand, and acknowledge this manual before performing any of the procedures described herein. • Team members must execute each procedure exactly as documented. Improvisation, shortcuts, or informal workarounds are not permitted. • Any ambiguity or uncertainty about a procedure must be escalated to the Finance Manager before proceeding — not after. • All required quality checkpoints and audit trail entries must be completed before moving to the next step or handing off work. • All exceptions to policy must be authorised in writing by the Finance Manager. Verbal authorisations must be followed up with written confirmation within 24 hours. • Every team member has a duty to report suspected non-compliance, fraud, or control failures through the reporting channel described in Section 9.3. 9.2 Non-Compliance Categories Category Description Examples Consequence Minor Procedural errors with no financial impact or data integrity issues Incorrect colour coding; minor formatting issues; late file naming Verbal coaching and correction; documented in performance notes Moderate Errors resulting in incorrect coding, misallocation, or processing delays Wrong category; incorrect approver; missing ApprovalMax comments; publishing incomplete invoices; failing to reclassify retainers Formal written warning; mandatory retraining; increased supervision for 30 days Major Policy violations resulting in financial loss, audit exposure, or systemic data integrity failures Paying commissions without dual verification; bypassing approval workflows; processing invoices outside approved systems; failing to verify supplier banking Formal disciplinary action; suspension of system access; potential termination
49 Critical Deliberate fraud, falsification of records, or intentional circumvention of controls Fabricating approvals; altering invoice amounts; creating fictitious suppliers; colluding to bypass controls; redirecting payments Immediate suspension; termination of employment; referral to legal authorities 9.3 Reporting Non-Compliance Any team member who becomes aware of a policy violation, procedural non-compliance, suspected fraud, or control failure must report it to the Finance Manager within 24 hours. Reports may be made verbally or in writing. The company is committed to investigating all reports promptly and fairly, and no team member will face retaliation for reporting a genuine compliance concern in good faith. All reports will be documented, investigated, and resolved with findings recorded in the compliance register. 9.4 Compliance Monitoring & Reporting Monitoring Activity Frequency Responsible Output Internal control self- assessment Quarterly Finance Manager Control effectiveness report Exception and variance tracking Daily/Monthly Accounts Team Variance and exception reports Policy compliance spot checks Monthly Finance Manager Compliance check reports Audit trail completeness review Quarterly Finance Manager Audit trail review report Segregation of duties review Quarterly Finance Manager SoD compliance report Annual policy review and re- acknowledgement Annual Finance Manager Updated manual; signed acknowledgements Job cost duplicate check review Monthly Finance Manager Monthly duplicate check review report
50 10. Document Control & Revision History This manual is a controlled document. Only the Finance Manager or a delegated authority may approve changes to its content. All revisions must be recorded, and all team members must be notified of material changes within 5 business days of approval. 10.1 Revision History Version Date Author Description of Changes 1.2 2025-01-09 Removed Policy 5.3 (Commission & Retainer Payment Policy); renumbered Section 5 policies (5.4–5.12 → 5.3–5.11); updated internal controls register Finance Manager 1.1 08/05/2026 Finance Manager Numbering corrections across all sections; added SOP-010: Proscan/Procure Upload & Publishing Process (daily procedure); renumbered monthly SOPs (SOP-011 to SOP- 016) and quarterly SOPs (SOP-017 to SOP-018) 1.0 29/05/2026 Finance Manager Initial release — consolidation of all daily, weekly, monthly, and quarterly procedures into a single audit-focused SOP & Policy Manual with 31 embedded internal controls 1.3 20/05/2026 Finance Manager Added SOP-012: End-of- Month Job Cost Duplicate Checks (monthly procedure); renumbered monthly SOPs (SOP-012 to SOP- 018) and quarterly SOPs (SOP-019 to SOP-020); added IC-033 and IC-034 to Internal Controls Register; updated Audit Trail Requirements Matrix; updated Roles & Responsibilities table
51 10.2 Review Schedule This manual must be reviewed at least annually, or more frequently if a material change occurs. The Finance Manager is responsible for initiating the review. All team members must re-acknowledge after each review. 10.3 Document Distribution This manual is distributed electronically via the company's document library. All team members are granted read access. The version stored in Teams is the only authoritative version. 10.4 Acknowledgement Requirement Every team member must sign the Acknowledgement Form confirming they have read, understood, and agree to comply with this manual. The signed form must be returned to the Finance Manager and filed in the employee's personnel record. Re-acknowledgement is required after each annual review or material revision.
52 11. Approval and Authorization This Standard Operating Procedures & Policy Manual has been reviewed and approved by the undersigned authorities. By signing below, each approver confirms that the contents of this manual are accurate, complete, and suitable for implementation across the company's finance and administrative operations. Role Name Signature Date Finance Manager Danny Pejcinoski 29/05/2026 Team Member Acknowledgement I, the undersigned, acknowledge that I have read, understood, and agree to comply with all policies and procedures documented in this Standard Operating Procedures & Policy Manual. I understand that non- compliance may result in disciplinary action as outlined in Section 9. Team Member Name Role Signature Date
53 Appendix A: Internal Controls Register The following register summarises all internal controls embedded in this manual. Each control is uniquely identified, classified by type, and linked to the relevant procedure or policy. This register serves as the master reference for auditors and management to verify the completeness and effectiveness of the control framework. Control ID Type Description SOP/Policy Ref IC-001 Preventive Single controlled gateway (Dext) for all invoices; no direct Xero/ApprovalMax entry Policy 5.1 IC-002 Preventive Three-way match: PO → Invoice → Delivery/Receipt required before payment Policy 5.2 IC-003 Detective Invoice amounts exceeding PO values queried with Scheduling Department Policy 5.2 IC-004 Preventive Dual-verification for commission: milestone AND client payment confirmed independently Policy 5.3 (Removed – Control Obsolete) IC-005 Corrective Mandatory retainer reclassification upon commission invoice receipt Policy 5.3 (Removed – Control Obsolete) IC-006 Preventive Locked development cost coding (DEXT + asset codes); Finance Manager override only Policy 5.3, SOP-005 IC-007 Preventive Independent banking verification (verbal + documentary) for new suppliers Policy 5.4, SOP-007 IC-008 Preventive $1 test payment with CBA Bank Details confirmation for new suppliers Policy 5.4, SOP-007 IC-009 Detective Monthly bank detail cross- check during supplier statement reconciliation Policy 5.4, SOP-020 IC-010 Detective Independent system-to- system reconciliation (ApprovalMax vs Fastbuild) Policy 5.5, SOP-004, SOP-020 IC-011 Preventive Mandatory cost allocation at point of sale (Bunnings Powerpass) Policy 5.6, SOP-006 IC-012 Preventive Financial Manager authorisation for all new fuel cards and amendments Policy 5.6, SOP-009
54 IC-013 Preventive Credit note cross-referencing to original invoices before processing Policy 5.7, SOP-001 Part G IC-014 Detective Independent preparer/reviewer segregation for balance sheet reconciliations Policy 5.8, SOP-020 IC-015 Preventive GREEN-only payment scheduling; no payment without verified reconciliation Policy 5.9, SOP-020 IC-016 Preventive PBA and RET notation blocking on payment scheduling Policy 5.9, SOP-020 IC-017 Detective Quarterly retention reconciliation with opening balance verification Policy 5.10, SOP-020 IC-018 Preventive Mandatory colour-coding and file naming for offshore team handoff Policy 5.11, SOP-003 IC-019 Directive Colour-coded email labels for team member assignment SOP-001 Part A IC-020 Detective Residual PO amount tracking in Fastbuild vs Dext SOP-001 Part D IC-021 Preventive Mandatory field completion check before Dext publishing SOP-001 Part E IC-022 Preventive Credit notes held under "To Review" until Xero publishing SOP-001 Part G IC-023 Directive Mandatory ApprovalMax comments with site order reference SOP-002 IC-024 Directive Standardised client naming format and account classification in Fastbuild/Xero SOP-008 IC-025 Detective Version 2 AP Aged Report for final reconciliation verification SOP-020 IC-026 Preventive Daily follow-up on unapproved invoices before accounts cut-off SOP-020 IC-027 Detective 100% invoice examination with documented exception log (Cost of Sales) SOP-020 IC-028 Directive Standardised documentation requirements for all reconciliations SOP-020 IC-029 Preventive Dual-signature requirement for statutory declarations SOP-020
55 IC-030 Directive 5-working-day completion deadline for WIP reconciliation SOP-020 IC-031 Detective Red flag monitoring for retention reconciliation SOP-020 IC-033 Detective Monthly systematic duplicate detection across all transaction types using multi-field matching criteria prevents duplicate costs from distorting project and financial reporting SOP-012 IC-034 Preventive Finance Manager approval required before any duplicate correction is executed in FastBuild prevents unauthorised or incorrect adjustments to job cost data SOP-012
56 Appendix B: Audit Trail Requirements Matrix This matrix specifies the minimum audit trail requirements for each procedure. For every action, the table identifies what must be documented, where it is recorded, and who is responsible. This matrix ensures that auditors can trace any transaction from inception to final posting with complete confidence in the integrity of the evidence. Procedure What Must Be Documented Where Recorded Responsible SOP-001: Invoice Publishing Upload timestamp, source email, user ID; approval chain with timestamps; special case notations Dext, ApprovalMax, email system Onsite/Offshore Team SOP-002: Site Order Invoices PO number, approver assignment, site order reference in comments Dext, ApprovalMax, Employment Hero Onsite/Offshore Team SOP-003: Dext Prep for Offshore CSV export, colour coding, file naming, Teams notification Dext, CSV files, Teams Onsite Team SOP-004: Job Cost Reconciliation Worksheets, variance reports, trade code changes, preparer/reviewer sign-offs Excel worksheets, ApprovalMax, Fastbuild Accounts Team SOP-005: Land & Dev Cost Allocation Asset code assignment, Finance Manager authorisation for changes Dext Accounts Team SOP-006: Bunnings Powerpass Job number, supervisor, cost code at point of sale Bunnings transaction record Cardholder SOP-007: Supplier Onboarding ABR verification, verbal confirmation log, banking document, 4Factor check, test payment confirmation Xero contact history Accounts Team SOP-008: New Contact Creation Naming format compliance, account classification, cross- system consistency Fastbuild, Xero Accounts Team SOP-009: BP Fuel Card Ordering Card order details, PIN setup, purchase restrictions, Financial Manager approval BP Plus system, Vehicle Register Accounts Team SOP-010: Proscan/Procure Upload & Publishing Approval status confirmation, file storage path, Proscan upload record, Procure field entries, Procore publishing confirmation ApprovalMax, Proscan, Procure/Procore Onsite Accounts Team SOP-013: Supplier Statement Recon Version 1 & 2 AP reports, worksheets, variance documentation, bank detail cross-checks Excel, Xero, Dext Accounts Team
57 SOP-013: Supplier Statement Prep Missing invoice actions, approver follow-ups, Dext Notes entries Dext Accounts Team SOP-014: EOM Payment Scheduling Reconciliation checklist, GREEN verification, payment date confirmation, PBA/RET blocking Xero, reconciliation folder Accounts Team SOP-015: Commission Retainers Original retainer entry, reclassification entries in Fastbuild and Xero, job costing verification Fastbuild, Xero, Dext Accounts Team SOP-016: Cost of Sales Check Original report backup, annotated report, exception log, summary section Excel reports Accounts Team SOP-017: Balance Sheet Recon Worksheets, supporting documents, variance explanations, approval signatures Reconciliation packs Accounts Team / Finance Manager SOP-018: Statutory Declarations Document naming, dual signatures, email confirmation, filed copies Stat Dec folder, email Accounts Team SOP-019: WIP Reconciliation Finance Manager job report, worksheets, variance reports, 5-day completion Excel, ApprovalMax, Fastbuild Accounts Team SOP-020: Retention Reconciliation Prior period reconciliation, current worksheets, variance explanations, red flags Reconciliation packs Accounts Team SOP-013: Job Cost Duplicate Checks Report generation details, flagged items worksheet, verification outcomes, Finance Manager approval for corrections, correction details, reconciliation confirmation, monthly review log FastBuild, duplicate review worksheet, monthly review log Accounts Officer / Finance Manager SOP-012: Job Cost Duplicate Checks Report generation details, flagged items worksheet, verification outcomes, Finance Manager approval for corrections, correction details, reconciliation confirmation, monthly review log FastBuild, duplicate review worksheet, monthly review log Accounts Officer / Finance Manager
58 Appendix C: Approval Authority Matrix This matrix defines the approval authority for each invoice category, as derived from the Invoice Approval Matrix and the Chart of Accounts Matrix. It serves as the authoritative reference for assigning approvers in Dext and ApprovalMax. Invoice Category GL Code Approver Special Conditions Residential Suppliers — With PO 322/01 Check PO/Receipt PO on Fastbuild — Residential Suppliers — EO (no PO) 322/01 Scheduling Manager — Commercial Suppliers 321/01 Commercial Project Manager — Residential Subcontractors — With PO 322/06 Supervisor — Residential Subcontractors — Without PO 322/06 Scheduling Manager + Supervisor + Construction Manager (Residential) Multiple approvers required Residential Subcontractors — EO 322/06 Scheduling Manager + Supervisor + Construction Manager (Residential) Multiple approvers required Commercial Subcontractors 321/06 Commercial Project Manager — Site Orders — Matched — Straight to ApprovalMax — Site Orders — Not Matched — Owner of Site Order Book — Preliminary Invoices — Drafting Manager — Skip Bins — Supervisor Job dependent Motor Vehicle Repairs 448 Senior Site Manager (JWT) Excessive repairs require second approval from JWT Motor Vehicle Registration 449 Straight to ApprovalMax — Utilities — Display Homes GL allocated Design Manager — Utilities — Head Office GL allocated Office Coordinator — Utilities — New Builds (Residential) 322/07 Straight to ApprovalMax — Utilities — New Builds (Commercial) 321/03 Straight to ApprovalMax — Uniforms 454 Office Coordinator — Stationery & Computer 461 Office Coordinator — Staff Reimbursements 454 Employment Hero —