Version 1.0
Prepared by: @Lorraine Sebata
Approved by: @Marcia Wilkinson
Reviewed date: 2025-08-06
Next review date: 2026-08-06
This SOP details the step-by-step process for initiating, approving, executing, and reconciling internal fund transfers between the company's various bank accounts or internal ledgers. Its purpose is to ensure consistency, accuracy, security, and proper authorization for all internal movements of funds, maintaining financial integrity and effective cash management.
This SOP applies to all employees in the Accounts Department, including initiation, approval, and processing of internal fund transfers within Easyterms, including but not limited to Finance Department staff, Branch Managers, and Senior Management. It covers transfers between different bank accounts (e.g., operating accounts, savings accounts, disbursement accounts) and internal ledger adjustments that represent fund movements.
Accounting and Reconciliation Policy
Authorization Matrix Policy
Requesting Department/Employee: Initiates the CFAL Money Market Investment Fund Request, providing necessary details and justification.
Finance Officer / Accountant: Receives, reviews, and processes CFAL Money Market Investment Fund Requests; prepares transfer instructions; performs initial reconciliation.
CEO : Reviews and approves CFAL Money Market Investment Fund Requests based on the company's Authorization Matrix.
Head of Finance / CFO: Provides final approval for high-value or complex transfers as per the Authorization Matrix; oversees reconciliation.
Bank/Financial Institution: Executes the actual transfer of funds as per instructions.
5.1 Initiation of Transfer Request (Requesting Department/Employee)
5.1.1 Complete the "CFAL Money Market Investment Fund Request" , providing the following details:
Date of Request
Purpose of Transfer (e.g., funding disbursement account, consolidating funds, covering operational expenses)
Source Account Name and Number
Destination Account Name and Number
Amount to be Transferred
Requested Transfer Date
Any relevant supporting documentation or justification.
5.1.2 Submit the request to the Finance Officer/Accountant.
5.2 Review and Verification (Finance Officer / Accountant)
5.2.1 Receive the "Internal Fund Tranfer Request" and review it for completeness, accuracy, and appropriate justification.
5.2.2 Verify that the requested transfer aligns with the company's financial policies and budget.
5.2.3 Check the availability of funds in the source account.
5.2.4 If any discrepancies or missing information are found, return the form to the requesting department for correction/clarification.
5.2.5 Prepare the transfer instructions for the bank/financial institution (e.g., online banking transfer initiation, bank transfer letter).
5.3. Approval Process (Operations Manager / Authorized Signatory / Head of Finance / CFO)
5.3.1 Forward the verified "CFAL Money Market Investment Fund Request" and prepared transfer instructions to the appropriate authorized signatory (CEO and Operations Manager) as per the Authorization Matrix Policy
5.3.2.The authorized signatory reviews the request, purpose, amount, and supporting documents.
5.3.3 If approved, the signatory signs/approves the "Internal Fund Tranfer Request" and authorizes the transfer instructions.
5.3.4 If rejected, the signatory notes the reason for rejection on the form and returns it to the Finance Officer/Accountant, who then communicates the decision to the requesting department.
5.4. Reconciliation and Documentation (Finance Officer / Accountant)
5.4.1 Monitor bank statements for confirmation of the completed transfer.
5.4.2 Reconcile the internal transfer entry in the accounting system with the bank statement entry.
5.4.3 Attach the "Internal Fund Tranfer Request," bank transfer confirmation, and relevant bank statement snippets to the accounting system entry.
5.4.4 File all physical and digital documentation related to the transfer in a designated, secure location.
Bank Transfer Confirmation/Reference via email
Bank Statements
Accounting System Records
All employees involved in the internal fund transfer process will receive mandatory training on this SOP and related policies annually or upon significant revisions.
This SOP will be reviewed annually by the Finance Department to ensure its continued effectiveness, compliance, and alignment with business objectives.