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Payment Request Policy

The Company strives to effectively manage liquidity ensuring that its obligations to third parties are met in time at minimum cost to the Company.
Last edited 132 days ago by Oleg Zverlin
Payment requests are introduced to meet the following goals:
Follow the approved budgets for profit and cost centers
Use available funds efficiently
Reduce business risks by avoiding cash shortages and ensuring timely payment of obligations to third parties.

Policy Coverage

The policy covers employees of Finance dept authorized by CFO, budget owners or non-Finance employees authorized by budget owners to be a requestor.

Policy Exclusions

Reimbursement of business costs paid by the Company employees’ own funds are not covered by this policy.

Payment (Settlement) Days

Approved payment requests are settled on a dedicated payment day as decided by CFO.
Payment days are Tuesday and Friday each week.
If a payment day is fallen on a non-working day, settlements are made on the next working day.

Process Scheme

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Data Storage Requirements

Payment request backlog requirements:
All payment requests irrespective of whether they are accepted for processing or cancelled must be stored at a payment request backlog file.
Access to the backlog file is granted to CFO-authorised Finance dept employees only.
A backlog file shall allow tracking of changes made to it (i.e. when and who did what).
A backup copy of the file shall be made at the end of each day.
A separate copy of the backlog file shall be archived at the year end.
Information evidence requirements:
A finance controller shall retain a communication regarding provision of key missing information for the respective payment request either in email, on Slack or on Jira.
If the information is captured as a screenshot, it must meet the following:
The screenshot shall cover the entire screen area, not only the active window of an IT system used in the course of the KYC due diligence
The screenshot shall show the system date and time

Payment Request Requirements

To request a payment, a budget owner or an approved requester for a cost or profit center should use Slack on the channel #payment_request_departments.
Please refer to the step-by-step guide below for instructions on how to make a request in Slack.
If a request is missing required information or clarification is needed, a finance controller will contact the requester.
The request will not be processed by the Finance department until all gaps in information are clarified.
Mandatory information to be provided in a payment request:
Detailed reasons for a payment
Cost or profit center
Whether a payment has been budgeted or not
Payment urgency/ priority
A date by which a payment shall be made
Contractor’s details
Contract number and date (if any)
Amount and currency
Payment means (bank transfer or cash, strong reasoning for using cash is required)
Send an invoice to the financial controller in Slack or by email
How to create a request in Slack:
To start a budget request, the budget owner should open the "Payment_request_departments" channel in Slack.
In the shortcuts section, select "Request Payment" to access a table.
Fill out the entire table and click "Submit" when finished.
The financial controller will review and accept the request. Once accepted, the budget owner will receive a notification from the bot.
On either Tuesday or Friday, you will receive a Slack notification confirming that the payment has been made.

Initial Check of Request

Upon receipt of a request for payment, a finance controller shall make sure that:
The requester is authorised to initiate the request
All required information is provided, a reason for the payment is clear and makes business sense for this particular profit or cost center
It is clear whether this payment has been budgeted or not and what a difference to the budget is
A finance controller shall work using with the requester to meet the above goals within 24 hours since the request initiation.
If the requester does not provide sufficient detail within the above timeframe, a finance controller will cancel the request.
Payments marked as urgent shall be processed by a finance controller first.
If the payment amount exceeds the monthly cash flow plan for the profit or cost center, a finance controller will discuss the reasons for the excess and explore options like splitting the payment or postponing it.
If the payment amount exceeds the monthly budget for a specific cost, a finance controller will investigate the reasons for the excess.
All received information is noted to the payment request in the backlog file.
If a requester abuses the payment priority to expedite their requests, a finance controller will discuss the case with the CFO, who may decide to restrict the requester's use of high priority for their requests.

Non-Budgeted Payment

Requests for non-budgeted payments shall be made by a head of a profit or cost center and be supplemented with the following information:
Reasons for missing such expense in the budget
Strong business rationale for such expense to incur
Reasons for selecting a particular provider or supplier
A finance controller shall normally set a low priority for non-budgeted payments for processing unless there is a clear business case for such expense.
CFO may initiate a discussion of such payment request with a wider group of top managers to justify the need in such expense in case of doubt.

Request Approval

A finance controller pre-approve payment requests that are within the budget or cash flow plan or the excess is within their respective authority limits (see Authority limits below).
CFO approves:
Budgeted payments irrespective of their amount
Payments above the budget if the excess is within its authority limit
Non-budgeted payments within its authority level.
The CFO may ask for more information from a finance controller and the requester before making a decision. The finance controller updates the payment request with the requested information.
If the requested amount is above the CFO's authority limit, the CFO seeks approval from the COO or CEO. The final approval is documented and stored in email or Slack.
The CFO has the ultimate responsibility and authority to decide when and how a payment should be made for each payment request. This information is recorded in the backlog file by the CFO or a finance controller.
The CFO adds a final approval note in a dedicated column of the backlog file that only the CFO can access for each approved payment.
After the payment request is approved or rejected, a finance controller updates the corresponding status in the request on Slack by the end of the workday.
Payment Authority Limits
An excess over annual budget - UP TO
Finance controller
200 USD
5,000 USD
10,000 USD
20,000 USD
The Board
20,001+ USD
There are no rows in this table

Payment Finalization

By the end of a working day before a Payment Day, a budget controller should create a registry of payments and sent to CFO and then, after CFO approval, send it to a payment manager
On the next day after the payment is made, it is necessary to check all the applications that were requested have been paid.
Roles and Responsibilities
Budget owner
A head of profit of cost center responsible for its operations
Finance controller
A member of Finance dept responsible for:
Doing an initial check on a payment request according to the process set out herein
Liaison with budget owners
Doing and maintaining corresponding records of the payment request processing
Head of Finance dept
There are no rows in this table
Profit center
A third party legal entity that has engaged the Company to provide services under a service contract
Cost center
A Client with whom the Company has not concluded a contract
Provectus IT and its subsidiaries
Group Company
A legal entity or a sole trader that operates under control of the Group
There are no rows in this table

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