Providing Credit

 

(1)        Each agency that provides credit must include a credit policy in its Finance Manual.

 

(2)               A credit policy must specify-

(a)          the types of revenue it applies to

(b)          the limits on the value of credit per transaction and per person or entity;

(c)           the criteria for approving credit and the officers who can approve credit;

(d)          the type of security, if any, required to prevent bad debts;

(e)           the settlement (payment)period of any credit sale; and

(f)            the interest to be charged on arrears.

 

(Financial Instructions 2005 s(33))