W-30: Finance Ways of Work¶
| Field | Value |
|---|---|
| Document | W-30 |
| Title | Finance Ways of Work |
| Status | Draft |
| Owner | CFO |
| Created | 2026-04-05 |
| Review | Quarterly |
| Depends On | W-01 (Company Operating Rhythm), W-20 (Operations Ways of Work), STD-GOV-137 (Department Mandates and Decision Rights) |
Purpose¶
Define how Simpaisa's finance function operates: month-end close, settlement reconciliation, treasury management, financial reporting, budgeting, pricing approvals, and procurement. This document establishes the cadences, responsibilities, and hand-offs that keep the financial engine running across five active markets with distinct currencies, regulatory regimes, and banking infrastructure.
Simpaisa processes $1B+ in annual transaction value across PK, BD, NP, IQ, EG, and AE. The finance function must ensure every dollar is accounted for, settlements are accurate, liquidity is maintained, and regulatory reporting obligations are met.
1. Month-End Close Process¶
1.1 Timeline¶
| Business Day | Activity | Owner | Dependency |
|---|---|---|---|
| BD 1 | All settlement files for the final day of the month reconciled | Operations | W-20 §2 |
| BD 1–2 | Revenue recognition: transaction fees, service charges, FX margins | Finance — Revenue Accountant | Settlement reconciliation complete |
| BD 2 | Intercompany charges and transfer pricing entries | Finance — Group Accountant | Country P&Ls submitted |
| BD 3 | Country P&L submissions due from Country Heads | Country Heads | W-22 §5 |
| BD 3 | Accruals and provisions posted | Finance — Management Accountant | Cost data collected |
| BD 4 | Payroll entries confirmed | HR + Finance | Payroll processed |
| BD 5 | Consolidated trial balance produced | Finance — Financial Controller | All entries posted |
| BD 6 | CFO review of consolidated financials | CFO | Trial balance ready |
| BD 7 | Month-end pack distributed to CEO and ELT | CFO | Review complete |
| BD 8 | Close the books — no further entries without CFO approval | CFO | Pack distributed |
1.2 Close Checklist¶
Before the CFO signs off month-end:
- All bank reconciliations completed and reviewed (every bank account, every market)
- Settlement reconciliation exceptions resolved or accrued
- Intercompany balances agreed between entities
- FX revaluation entries posted at month-end rates
- Prepayments and accruals reviewed
- Fixed asset register updated
- Payroll reconciled
- VAT/GST/sales tax provisions posted per market requirements
- Revenue recognised per IFRS 15 (principal vs. agent assessment per market)
1.3 Roles¶
| Role | Responsibility |
|---|---|
| Financial Controller | Owns the close process end-to-end; produces the trial balance |
| Revenue Accountant | Revenue recognition, merchant billing, fee calculations |
| Management Accountant | Budgets, forecasts, variance analysis |
| Group Accountant | Intercompany, consolidation, transfer pricing |
| Country Finance Staff | Local entries, bank reconciliations, regulatory filings |
| CFO | Final review and sign-off |
2. Settlement Reconciliation¶
2.1 Daily Reconciliation¶
Settlement reconciliation is an operations-led activity (W-20 §2) with finance oversight:
- Operations completes daily reconciliation by the deadline per W-20 §2.1.
- Operations sends the confirmed settlement report to Finance by the reconciliation deadline.
- Finance records the settlement in the accounting system.
- Any unresolved discrepancy >USD 500 is flagged to the Financial Controller.
2.2 Weekly Summary¶
Every Monday, Finance produces a weekly settlement summary covering:
- Total settlements by market and currency.
- Discrepancies identified and their resolution status.
- Ageing of unresolved discrepancies.
- Pre-funding balances by partner and market.
The weekly summary is reviewed by the CFO and shared with the COO.
2.3 Monthly Close¶
At month-end:
- All settlement discrepancies must be either resolved or accrued.
- Discrepancies >30 days old require a written explanation from Operations and a provision decision from the Financial Controller.
- The net settlement position per partner is reconciled to the general ledger.
3. Treasury Operations¶
3.1 Liquidity Management¶
Simpaisa maintains pre-funded balances with partners across multiple markets and currencies. Treasury is responsible for:
| Activity | Cadence | Owner |
|---|---|---|
| Cash position review (all accounts, all markets) | Daily (09:00 GST) | Treasury Analyst |
| Pre-funding top-up requests | As needed; 48-hour notice for large amounts | Treasury Analyst → CFO approval |
| 7-day cash forecast | Weekly (Monday) | Treasury Analyst |
| 30-day cash forecast | Monthly (1st business day) | Treasury Analyst |
| 90-day cash forecast | Quarterly | CFO |
3.2 Pre-Funding¶
Pre-funded wallets and settlement accounts require active management:
- Minimum balance thresholds are set per partner and reviewed monthly. Threshold = 2x average daily settlement value.
- Top-up process: Treasury Analyst initiates; amounts >USD 50,000 require CFO approval; amounts >USD 250,000 require CEO approval.
- Pre-funding reconciliation: Daily — pre-funding ledger matched to bank statements.
- Excess balance repatriation: If a partner account holds >3x threshold for 5 consecutive days, Treasury initiates repatriation.
3.3 FX Management¶
Simpaisa operates across PKR, BDT, NPR, IQD, AED, and USD.
| Activity | Approach |
|---|---|
| Transaction FX | Real-time market rate plus margin (set per commercial agreement) |
| Settlement FX | Spot rate at settlement time; no speculative hedging |
| Reporting FX | Monthly average rate for P&L; closing rate for balance sheet (per IAS 21) |
| FX exposure monitoring | Weekly review of net exposure by currency; escalate to CFO if >USD 500,000 net exposure in any single currency |
3.4 Banking Relationships¶
Treasury maintains operational banking relationships:
- Each market has a primary operating account and a settlement account.
- Signatories are reviewed quarterly (minimum two signatories per account; one must be CFO or CEO).
- New bank account opening requires CFO + CEO approval.
- Bank mandates are reviewed annually.
4. Financial Reporting Calendar¶
4.1 Internal Reporting¶
| Report | Frequency | Audience | Deadline | Owner |
|---|---|---|---|---|
| Daily cash position | Daily | CFO | 10:00 GST | Treasury Analyst |
| Weekly settlement summary | Weekly | CFO, COO | Monday 14:00 GST | Finance |
| Monthly management accounts | Monthly | CEO, ELT | BD 7 | Financial Controller |
| Monthly country P&L review | Monthly | CEO, CFO, Country Heads | BD 7 | Management Accountant |
| Quarterly board pack (financials) | Quarterly | Board | 10 business days before board meeting | CFO |
| Annual financial statements | Annual | Board, Shareholders | Per statutory deadline | CFO + External Auditor |
4.2 Regulatory Financial Reporting¶
| Market | Report | Frequency | Regulator | Deadline |
|---|---|---|---|---|
| PK | Financial returns | Monthly | SBP | 15th of following month |
| BD | Financial returns | Monthly | BB | 10th of following month |
| NP | Financial returns | Quarterly | NRB | 30 days after quarter end |
| IQ | Financial returns | Monthly | CBI | 20th of following month |
| AE | Financial returns | Quarterly | CBUAE | 45 days after quarter end |
Country Finance Staff prepare; the Financial Controller reviews; the CFO signs off. The Global Head Regulatory confirms submission.
4.3 External Audit¶
- Auditor appointment: Approved by the Board annually (Audit & Risk Committee recommendation).
- Interim audit: Q3 (September–October), covering H1 transactions and controls.
- Year-end audit: Q1 of following year (January–March).
- Audit preparation: Financial Controller leads; 4-week preparation period before each audit phase.
- Management letter responses: Due within 30 days of receipt; CFO owns the response.
5. Budget Review Cycle¶
5.1 Annual Budget Process¶
| Phase | Timeline | Activity | Owner |
|---|---|---|---|
| Strategic direction | July | CEO communicates strategic priorities for the following year | CEO |
| Department submissions | August | Each department and country submits budget proposals | Department Heads, Country Heads |
| Consolidation and challenge | September | CFO consolidates; challenge sessions with each department | CFO |
| ELT review | October | ELT reviews and adjusts consolidated budget | CEO + ELT |
| Board approval | November | Board approves the annual budget | Board |
| Communication | December | Approved budget communicated to all department heads | CFO |
5.2 Quarterly Budget Review¶
- When: 3rd week of each quarter (per W-01 Company Operating Rhythm).
- Participants: CFO, CEO, Department Heads, Country Heads.
- Format: Actuals vs. budget; forecast update; variance analysis; reallocation requests.
- Output: Updated forecast; approved reallocations; escalated items to ELT.
5.3 Budget Authority¶
Per STD-GOV-137 (Department Mandates and Decision Rights):
| Expenditure | Approval Required |
|---|---|
| Within approved budget line (single item <USD 10,000) | Department Head |
| Within approved budget line (single item USD 10,000–50,000) | CFO |
| Within approved budget line (single item >USD 50,000) | CEO |
| Outside approved budget (any amount) | CFO + CEO |
| Capital expenditure >USD 100,000 | Board |
6. Pricing Approval Workflow¶
Per STD-GOV-137, pricing follows a structured approval process:
6.1 Standard Pricing¶
| Step | Owner | SLA |
|---|---|---|
| Commercial proposes pricing for a new merchant or product | Commercial Head | - |
| Finance reviews margin impact and unit economics | Revenue Accountant | 3 business days |
| CFO approves or rejects | CFO | 2 business days |
| If approved, Commercial communicates to merchant and operations | Commercial | 1 business day |
6.2 Non-Standard Pricing¶
Non-standard pricing (below published rates, volume-based discounts, bespoke structures):
| Step | Owner | SLA |
|---|---|---|
| Commercial proposes with business justification | Commercial Head | - |
| Finance models impact (revenue, margin, lifetime value) | Management Accountant | 5 business days |
| CFO reviews and recommends | CFO | 3 business days |
| CEO approves (for discounts >20% below standard) | CEO | 3 business days |
| Legal reviews contract terms | Legal | 5 business days |
6.3 Pricing Review¶
- All pricing is reviewed annually as part of the budget cycle.
- Market-specific pricing is reviewed when regulatory changes affect fee structures.
- Volume-based pricing tiers are recalculated quarterly based on actual volumes.
7. Expense Management and Procurement¶
7.1 Expense Policy¶
| Category | Policy |
|---|---|
| Travel | Pre-approval required for all international travel; domestic travel approved by line manager |
| Entertainment | Pre-approval for amounts >USD 200; receipts required for all claims |
| Software subscriptions | Approved via IT procurement process (CDO) |
| Professional services | RFP required for engagements >USD 25,000 |
| Office expenses | Within country budget; Country Head approval |
7.2 Procurement Process¶
| Value | Process | Approver |
|---|---|---|
| <USD 5,000 | Direct purchase; single quote acceptable | Department Head |
| USD 5,000–25,000 | Three quotes required; purchase order | CFO |
| USD 25,000–100,000 | Formal RFP; evaluation committee | CFO + CEO |
| >USD 100,000 | Board-level procurement; per Third-Party Risk Management (STD-GOV-134) | Board |
7.3 Vendor Payment Terms¶
- Standard payment terms: Net 30 from invoice date.
- Early payment (Net 15 or Net 7) only with CFO approval and documented discount.
- Prepayment only with CFO approval and bank guarantee or equivalent security.
Appendix: RACI¶
| Activity | Finance | CFO | COO | CDO | Country Head | CEO |
|---|---|---|---|---|---|---|
| Month-end close | R | A | I | I | C | I |
| Settlement reconciliation (daily) | C | I | R/A | I | I | - |
| Treasury / liquidity management | R | A | I | I | I | I |
| Financial reporting (internal) | R | A | I | I | I | I |
| Financial reporting (regulatory) | R | A | I | I | C | I |
| Annual budget process | R | A | I | C | C | A |
| Pricing approval | C | A | I | I | I | I (non-standard) |
| Procurement (>USD 25K) | R | A | I | C | I | A |
| External audit | R | A | I | I | C | I |