CONTROL OF FUEL EXPENDITURE FOR TRANSPORTATION INDUSTRY-PART 2

Best wishes for you all ...
Apparently now we can find that the medium and heavy transport business is getting more and more important in my country. Start from small fleet, bus, to truck.
From all that we know that the main capital for its operation is Fuel Oil.
Once again for remind you, that this all information are from my experience. Where the blog that I’m sharing with you are contains materials based on experience that I practice and use as CFO or COO for this.

Fuel as the main capital in the transportation business, it is very vulnerable to be object for being misused. Abused in this case means through the mechanism of fuel spending, the person can reap a nominal profit. Then the company will certainly lose more from their financial to the fuel expenditure. We can say that this situation is one of example of Fraud.
I will not share how it can happen or how it looks. Because each of this will be different depends on the system implemented by the company.
I will share my experience to anticipate or minimize the impact of fraud in relation to fuel.

For the first we have to know and realize, “There’s no perfect system the world….all systems can be diverted!”

WHY? The system can be broken, because all systems will be weak when it meets “the cheating side” from people who run the system.

Down below are my best advice on fuel control:

1.       Making cooperation with gas station

2.       Use voucher system numbered sequence, and there should be in official company’s form

3.       Make an exclusive form, I suggest the shape is like a book or bank cheque, but for the paper does not have to be as thick as the cheque .

4.       In the voucher book, a small sheet of the voucher will remain (more likely a bank cheque), and the small sheet will be stays in the book and make sure who ordered it.

5.       If the number of vehicle that doing the charging in 1 day are more than once, then the submission must be made a recap which containing the voucher number and vehicle’s state number and the number of fuel that is loaded according to the voucher.

6.        Vouchers are submitted to the Finance department for approval.

7.       Approval from Finance is in the form of signatures and also should contain official stamp of the company which is only held by Finance.

8.       If there any voucher being CANCELED because of a any reason, then the voucher should not be discarded but still be made in the voucher book and put together with a small paper clip.

9.        Vouchers that are canceled should be written by a big “X” mark or "Canceled" by Finance

10.   Make a regular filling schedule, for example the fuel charging should be until it’s full.

11.   The fuel indicator will become the information in this control system about the fuel conditions when it’s filled.

12.   At the time of charging, put a special officer who filled the fuel.

13.   The form must consist of 3 ply’s, first ply and the third are for the gas station (that will be used for transactions to our company)

14.   The regulatory officer of the company receives a double note.

15.   The officer collects all receipts, and they made it into the voucher book according to the vehicle that has given the voucher number

16.   At the time of any charge, Finance shall receive the invoice, Listing Note and Voucher Number that will be used by Finance to verify, and then when all of this is appropriate, the payment to the gas station can be made.

I’m will not telling you about system variance that can be used based on what I have explained, because company situation and condition can be change anytime unpredictable. Because of it, CFO and COO have to be capable and smart to make a good system and available to provide system variance based on the main system. But the one thing that we have to know, please don’t make a system that become inhibit for a company to make an improvement on sales and profitability because the system we made is too tight.

Thank for all your attention guys…