ARTICIPATORY Y ORGANIZATION FOR P P ARTICIPATOR DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS ACCOUNTING POLICIES Table of Contents A
Accounting Policies Policies !tan"a#" O$e#ating P#oce"u#es
01
Budgeting
1
02
Procurement
6
03
Fixed Assets
11
04
Advances & Deposits Deposits
16
05
Cas and Ban!
1"
06
#icro$nance
24
0%
nter Fund 'ransactions
2(
0"
Financia) Ana)*sis
33
0(
+enera)
3"
10
Ad,ustment o- Deductions & surp)us
40
11
nterna) Audit
41
12
Annua) Audit
42
A$$en"ices an" Anne%u#e Anne%u#e
Accounting s&ste'
ARTICIPATORY Y ORGANIZATION FOR P P ARTICIPATOR DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS ACCOUNTING POLICIES
.rgani/ation -or Participator* Deve)opment .PD prepares its $nancia) statements in accordance it nternationa) Accounting tandards A as app)ica)e in Pa!istan on #Fs Fo))oing are te asic princip)es o- accounting7 a c d e
Accr Accrua ua)) asi asis s Conserv Conservati atism sm and prude prudence nce #ate #ateri ria) a)it it* * 8ea)i 8ea)i/a /ati tion on #at #atcin cing g
Acc#ual basis basis o- accounting means te accounting s*stem in ic transactions are recorded as and en te* occur eter cas received or not9 Cons Conse# e#(at (atis is' ' an an" " P#u" P#u"enc ence e means recordin ding $nancia) tran transa sact ctio ions ns suc suc tat tat asse assets ts reve revenu nues es and and gain gains s are are not not overstated and )iai)ities expenses and )osses are not underst understate ated9 d9 t is intend intended ed to resu)t resu)t in te -air presen presentat tation ion o- $nancia) resu)ts9 Mate#ialit& items are tose tat ma* in:uence te economic decision o- a user9 #ateria) items sou)d e presented separate)* in te $nancia) statements9 Reali)ation re;u re;uir ires es tat at reve revenu nue e e rec recogn ogni/ed i/ed in te accounting period it is earned rater tan en it is co))ected in cas9 Matc*ing princip)es Matc*ing princip)es re;uires tat expenses sou)d e reported on te ncome tatement during te same period as te revenues te* generate9 2
ARTICIPATORY Y ORGANIZATION FOR P P ARTICIPATOR DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS ACCOUNTING POLICIES
.rgani/ation -or Participator* Deve)opment .PD prepares its $nancia) statements in accordance it nternationa) Accounting tandards A as app)ica)e in Pa!istan on #Fs Fo))oing are te asic princip)es o- accounting7 a c d e
Accr Accrua ua)) asi asis s Conserv Conservati atism sm and prude prudence nce #ate #ateri ria) a)it it* * 8ea)i 8ea)i/a /ati tion on #at #atcin cing g
Acc#ual basis basis o- accounting means te accounting s*stem in ic transactions are recorded as and en te* occur eter cas received or not9 Cons Conse# e#(at (atis is' ' an an" " P#u" P#u"enc ence e means recordin ding $nancia) tran transa sact ctio ions ns suc suc tat tat asse assets ts reve revenu nues es and and gain gains s are are not not overstated and )iai)ities expenses and )osses are not underst understate ated9 d9 t is intend intended ed to resu)t resu)t in te -air presen presentat tation ion o- $nancia) resu)ts9 Mate#ialit& items are tose tat ma* in:uence te economic decision o- a user9 #ateria) items sou)d e presented separate)* in te $nancia) statements9 Reali)ation re;u re;uir ires es tat at reve revenu nue e e rec recogn ogni/ed i/ed in te accounting period it is earned rater tan en it is co))ected in cas9 Matc*ing princip)es Matc*ing princip)es re;uires tat expenses sou)d e reported on te ncome tatement during te same period as te revenues te* generate9 2
ARTICIPATORY Y ORGANIZATION FOR P P ARTICIPATOR DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS ACCOUNTING POLICIES
Financia) statements comprises o- a tatement tatement o- Financia Financia)) Position Position Ba)anc Ba)ance e seet tatement tatement o- Financia) Financia) Activiti Activities es income statemen statement t c t tat atem emen entt o- Can Cange ges s in Fina Financ ncia ia)) Posit ositio ion n cas cas F)o F)o tatement d tatem tatement ent oo- port-o port-o)io )io !tat !tate' e'ent ent of Finan Financi cial al Posit ositio ion n +al +alan ance ce s* s*ee eet, t, is a summar* o- te $nancia) position at a speci$c point in time9 t presen presents ts te econom economic ic resourc resources es o- an organi organi/at /ation ion and te c)aim )aims s agai again nst tos tose e reso resour urce ces9 s9 t comp compri rise ses s o- Asse Assetts
s $nancia) per-ormance over a speci$ed period o- time9 t summari/es a)) revenue earned and expenses incu incurr rred ed duri during ng a spec speci$ i$ed ed acco accoun unti ting ng peri period od99 nc ncome ome statement can determine its net pro$t or )oss te di?erence eteen revenue and expenses9 !tate' !tate'ent ent of Financi Financial al Positio osition n +Cas* +Cas* FloFlo- !tate' !tate'ent ent,, sos ere an institution>s cas is coming -rom and o it is eing used over a period o- time9 A cas :o statement c)assi$es te cas :os into operating investing and $nancing activities9 O$e#ating acti(ities services acti(ities services provided income@earning activities9 In(esting acti(ities expenditures acti(ities expenditures tat ave een made -or resources intended to generate -uture income and cas :os9 Financing acti(ities resources acti(ities resources otained -rom and resources returned to te •
•
•
3
ARTICIPATORY Y ORGANIZATION FOR P P ARTICIPATOR DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS ACCOUNTING POLICIES .ners resources otained troug orroings sort@term or )ong@term as e)) as donor -unds9 Po#tfolio Re$o#t Re$o#t provides in-ormation aout te )ending and savings operations o- an #F9 t provides time)* and accurate data aout te ;ua)it* o- te port-o)io9 t usua))* a)so inc)udes oter !e* port-o)io per-ormance indicators e9g9 outreac9n-ormation usua))* inc)udes7 umer and va)ue o- )oans outstanding end o- period 'ota) va)ue and numer o- )oans disursed during te period Average outstanding a)ance a)ance o- )oans a)ue a)ue o- outstanding )oan a)ances in arrears va)ue o- pa*ments in arrears a)ue a)ue o- )oans ritten o? during period Port-o)io aging ana)*sis n-orm n-ormati ation on on )oan )oan terms terms )oan )oan o?icers o?icers saving savings s accoun accounts ts and a)ances etc9 • • • •
• • •
FI.ED A !!ET! AND !!ET! AND DEPRECIATION Fixed assets i)) e stated at cost )ess accumu)ated depreciation9 Depreciation i)) e carged on reducing a)ance metod ere* te te cost cost o- an asse assett is r rit itte ten n o? over over its its esti estima mate ted d useuse-u) u) )i-e )i-e99 Depreciation i)) e carged on additions during te mont i)e no depreciation is carged on de)etions9 #aintenance and norma) repairs i)) e carged carged to income income as and en incurred9 incurred9 #a,or renea)s and improvements are capita)i/ed and an* assets rep)aced re p)aced are retired9 +ains or )osses on sa)e or retirement o- $xed assets i)) e inc)uded in current *ear>s income and expenditure account9 AR/ 0P ON LOAN M AR/ 0P
#ar! up on
ORGANIZATION FOR P ARTICIPATORY DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS ACCOUNTING POLICIES Funds provided * donors to susidi/e operating and administrative expenses i)) e recogni/ed as de-erred ncome en grant is received and recogni/ed income in accordance it te terms o- agreement and udgeting it te donors9 Funds uti)i/ed -or ac;uiring $xed assets i)) e de-erred and amorti/ed over te use-u) )i-e o- te assets9 LOAN LO!! PROVI!ION peci$c
10 oa)ance
outstanding
31@60 Da*s
40 oa)ance
outstanding
61@(0 Da*s
65 oa)ance
outstanding
(1@1"0 Da*s
"5 oa)ance
outstanding
#ore tan 1"0 100 o- outstanding da*s a)ance
1#ite O2s
5
ORGANIZATION FOR P ARTICIPATORY DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS ACCOUNTING POLICIES
6
ORGANIZATION FOR P ARTICIPATORY DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS ACCOUNTING POLICIES
!TANDARD OPERATING PROCED0RE! +!OP!,
7
ORGANIZATION FOR P ARTICIPATORY DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS Issue:
03
Issue Date:
April 2nd 2011
Revision:
Second
34 0DGETING 3434 Polic& 191919OPD programspro,ects i)) ave an activit* p)an -or acieving te desired targetsresu)ts assigned to it in accordance it imp)ementation p)an it donors and mar!eting researc ana)*sis carried out * OPD9 191929'e p)an i)) e revieed regu)ar)* on ;uarter)* asis and as per need to ascertain progress made toards acieving te desired targets as e)) as to !eep te p)an update9 191939'e activit* p)an i)) e used as -rameor! -or -orecasting program or area udget estimates9 191949Budget -unctions o- OPD i)) e overseen * te -o))oing
Tas5s
I'$le'ente" b&
Preparation o- program udget Program #anager estimates Program 8evie $na)i/ation nterna) imp)ementation #onitoring and #anager revision o- udgets Accounts
#anagers Auditor & Finance &
191959B.D i)) approve annua) udget9 3464Res$onsibilit& 192919#onitoring and revie o- udget i)) rest it te Finance9
3474 P#oce"u#e P#ocess O(e#(ie- 193919'e udget process i)) invo)ve te -o))oing ma,or steps7 •
•
Deve)opment o- a ca)endar o- activities necessar* to $nis te process and te scedu)e dates -or compi)ation o- eac step * respective P#s Deve)opment o- pre)iminar* estimates -or use * te P#s
Standard Operating Procedures Account ! Finance
1
ORGANIZATION FOR P ARTICIPATORY DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS Issue:
03
Issue Date:
April 2nd 2011
Revision:
Second
eva)uating te reasona)eness o- te estimates •
•
•
•
'e deve)opment and sumission o- udgetar* estimates * te P#s Compi)ation and revie o- udget estimates * Finance Presentation o- udget document to te C= -or adoption and C= i)) present Budget in B.D -or $na) approva)9
P#og#a' Fo#ecast 193929Basic p)anning and udget input data i)) e gatered -or te program -orecasts * te P#s troug7 •
.PD ision and #ission
•
Demand
•
Products
•
Discussions it donor
•
Program activit* p)an and
•
Personne) re;uirements -or te next *ear as discussed it te #anager E8&A it te consu)tation o- re)evant department ead9
193939A)) program p)ans and udgets i)) e prepared * te P#s9 'e -orecasts i)) inc)ude7
.vervie o- p)anned activities and udgets
ncome and expenditure ise p)ans and udgets and
Donorspartner9
193949'e prepared p)an and udget is mutua))* revieed discussed and revision i- an* it Finance and according)* i)) e amended e-ore its sumission to C= o ten i)) present in -ront o- B.D9 193959A-ter revie * te P#s and Finance te revieed udget it p)an i)) e distriuted among concerned operationa) departments9 Standard Operating Procedures Account ! Finance
2
ORGANIZATION FOR P ARTICIPATORY DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS Issue:
03
Issue Date:
April 2nd 2011
Revision:
Second
D#aft Annual u"get 193969Based on te p)ans P#s i)) prepare udgets9 #anager F&A i)) assist during te compi)ation9 1939%9Dra-t annua) p)an and udget i)) e presented to B.D * C= -or $na) consideration and revie e-ore approva)9 1939"9#anager F&A i)) revie o- pre)iminar* program p)ans and udget -orecasts in coordination o- P#s and C=9 1939(9'e in-ormation supp)ied i)) e revieed in terms o- accurac* possi)e pro)ems in imp)ementing proposed programs and reasons -or sustantia) variations eteen pro,ections and cost incurred during previous *ears9 As a resu)t7 •
•
'e contents o- te $na) udget i)) e $na)i/ed and 'e dra-t annua) p)an and udget i)) e revised i- necessar*9
Final u"get Docu'ent 1939109A-ter aving een revieed and revised as necessar* #anager F&A i)) compi)e Dra-t Annua) P)an and udget into a Fina) Budget document9 'e document i)) inc)ude7 •
•
•
•
'e comparison o- p)anned activities and udgets o- te current *ear it actua) acievement and incomeuti)i/ation 'e ig)igts o- te proposed udget in terms o- program expansion and p)anned activities An out)ine o- pro)em areas ic ave not reconci)edaddressed itin te current udget and
een
A revie o- te udget increases i- an* caused * canges and increases suc as sa)aries
1939119A-ter aving een compi)ed and approved * te B.D te $na) udget document i)) e sumitted to C= -or revie and recommendations9 1939129A specimen o- te Fina) Budget is attaced as Anne%u#e FA893:9 A$$#o(al an" A"o$tion of t*e u"get
Standard Operating Procedures Account ! Finance
3
ORGANIZATION FOR P ARTICIPATORY DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS Issue:
03
Issue Date:
April 2nd 2011
Revision:
Second
1939139C= i)) give $na) approva) on te p)ans and udgets -orarded * te B.D9 1939149A-ter approva) * te =D te annua) p)an and udget i)) e distriuted as -o))os7 1st Cop*
Cie- =xecutive
2nd Cop*
P#s
3rd Cop*
#anager F&A
4t Cop*
Fi)e
E%ecution of t*e u"get 1939159A)) departments under supervision o- nterna) Auditor A i)) e responsi)e -or !eeping trac! o- progress against activit* p)ans and udget9 'is -unction i)) comprises7 •
•
•
8evieing transactions -or con-ormit* it te p)anned activities Assuring tat no transaction occur un)ess approved in accordance it udget and .Ps and 8eporting activit* status and udget uti)i/ation on mont)*;uarter)* and annua) asis on te speci$ed udgeting and reporting -ormats9
1939169'e progress eing made toards o,ectives i)) e revieed and eva)uated on mont)* asis * A & Finance9 Monito#ing an" Cont#ol 19391%9'o ascertain te progress eing made toards te prescried o,ectives an e?ective and e?icient udgetar* in-ormation s*stem i)) e esta)ised9 'e Financial Info#'ation !&ste' i)) e capa)e o-7 •
•
Providing management at a)) )eve)s on time)* asis it accurate and re)evant in-ormative data on per-ormance toards eac goa) Comparative ana)*sis o- p)anned statistics it current resu)ts and
Standard Operating Procedures Account ! Finance
4
ORGANIZATION FOR P ARTICIPATORY DEVELOPMENT FINANCE AND ACCOUNTS OPERATIONS Issue:
03
•
Issue Date:
April 2nd 2011
Revision:
Second
upporting management in ta!ing corrective actions erever necessar* to )a* don ade;uate and accounta)e -uture p)ans9
19391"9 #anager F&A i)) prepare te -o))oing reports at te minimum ased no te current in-ormation avai)a)e on mont)* asis during te execution7 Re$o#ts Activit* tatus 8eport Dra-ted * respective P#s
Pu#$ose an" Ob;ecti(e •
•
Financial Re$o#t
•
•
'o ana)*/e te progress toards pre@set goa)s and 'o ascertain te response to certain programs eing imp)emented9 'o ana)*/e signi$cant variances i- an* 'o otain unencumered program a)ance9
19391(9Activit* p)ans and udgets i)) e revised during te $nancia) *ear in order to ad,ust pro,ections to meet canging conditions9 'e potentia) udget revisions ma* e7 •
•
•
Budget =xpansions 8epresent enancement to departmenta)program ase udget e9g9 * adding ne udget )ine or increment in a)read* apportioned udget9 Budget Contractions 8epresent de)etion o- udget )ine or decrease in a)read* apportioned amount9 Budget 'rans-er 8epresent trans-er o- -unds -rom one udget )ine to anoter9
1939209#anager F&A i)) prepare u"get Re(ision Fo#'
Standard Operating Procedures Account ! Finance
5
64 PROC0REMENT 6434 Polic& 291919A)) Procurements i)) e made a-ter approva) o- competent autorit* as prescried9 291929e)ection o- metod o- procurement i)) e ased on te estimated va)ue and nature o- goodsservices9
6464 Res$onsibilit& 292919Procurement Committee i)) e responsi)e to ensure tat a)) te procurement -unctions are per-ormed in accordance it te po)icies and procedures9
6474 P#oce"u#e 293919'e person re;uiring te goods i)) prepare Re=uisition Fo#'
it consu)tation o- Finance i)) or! out te estimated cost o- items to e procured and te avai)ai)it* o- udget9
293969 C= ma* de)egate on need asis te approving autorit*
poer -or procurement in speci$c pro,ect s9 2939%9'is Form i)) e sent -or te approva) o- competent autorit* as -o))os7
T&$e
Esti'ate" A'ount
A$$#o(ing Aut*o#it&
Capita) items
A))
Cie- =xecutive
8evenue items
=xceeding PG8 2500
Cie- =xecutive
Hp to PG8 2500
Program #anager
647434 Ta% "e"uction 2939291919 Iito)ding income tax sou)d e deducted -rom a resident person in Pa!istan and is not considered a non@resident9 'ax sou)d e deducted as per +ovt9 tax scedu)e at te time o-
pa*ment and it sa)) e deposited in te +overnment 'reasur* itin se(en +>, or!ing da*s9 'e ationa) 'ax umer o- te vendorservice provider sou)d e otained and sou)d e mentioned in te 'ax Pa*ment 8eceipt -orm9 n case ere supp)ier service provider as -ai)ed to -urnis a tax exemption certi$cate a note is to e p)aced on te re)evant invoice and tax exemption certi$cate statement otained -rom te supp)ier -or record purposes9 'ax deductions sou)d e processed troug preparation o- Inco'e Ta% C*allan Fo#'sJ troug =@$)ing -or tota) tax amount deducted -rom te supp)iers service provider9 A cop* o- te Ca))an Form sa)) e anded over to Accounts o -orarded it to te supp)ier s service provider troug te mai)e)ectronic
mai)
or
anded
over
to
te
autori/ed
representative a-ter otaining due ac!no)edgement o- tax deposited -rom te an!9 A ;uarter)* statement under te ncome
'ax .rdinance
2001J
sou)d e prepared and
sumitted to te tax autorities in te concerned =n-orcement itin $-teen 15 da*s a-ter te end o- eac ;uarter9 imi)ar)* annua) statement sou)d e prepared itin tree monts a-ter te c)osing o- 'ax KearJ i9e9 Lune 30 t -or its sumission to te o?ice o- ncome 'ax9
647464 Gifts?Fa(o#itis' f#o' Ven"o#s?Counte#$a#ts 29392919
o OPD emp)o*ee ma* re;uest or accept commissions reates tips gi-ts )oans or an* oter pa*ment -avor -rom an*one o does or is p)anning to do usiness it OPD9
29392929
An* o?ers o- te aove ic indicate te see!ing o- -avored treatment sou)d e reported to te C=9 Acceptance o- te gi-ts-avors ma* cause dismissa) -rom service9
29392939
Eoever tere ma* e times en vendors counterparts or program participants ma* ant to so a to!en o- appreciation -or our re)ationsip assistance etc9
29392949
+i-t sa)) not e received or given to counterparts or oter OPD sta? memers ic ave a va)ue aove PG8 5009
'e so)e
intent o- te gi-t sa)) e te esta)isment o- or preservation o- good i))9 A)) gi-ts received o- tis nature must e reported to te C= or is designate9 'e C= i)) decide te appropriate disposition o- te gi-t received9
Met*o" of P#ocu#e'ent 2939"9#etod o- procurement i)) e determined on te va)ue o- items to e procured9
Value
Met*o"
Hp to 2500
PG8
Hp to 5000
PG8 8e;uest -or Muotations itout )etter
Aove 15000
PG8 8e;uest -or Muotation Proposa) it )etter
Local P#ocu#e'ent 2939(9+oods i)) e procured * ta!ing tree vera) ;uotations and recording prices and oter terms and conditions on Co'$a#ati(e !tate'ent s i))nvoices and +oods 8eceiving ote +8 i)) e -orarded to Finance department -or disursement and recording9 Fo#'ation of P#ocu#e'ent Co''ittee 2939149 Procurement Committee i)) carr* out a)) procurements aove PG8 50009 2939159Committee i)) ave at )east -our memers as -o))o7 •
#anager E8 and Admin
•
#anager Finance and Accounts P#s
A""itional P#ocu#e'ent P#oce"u#es 2939169Procurement Committee i)) per-orm additiona) procedures in accordance it te terms agreed it te donor en goods are eiter partia))* or -u))* $nanced * donor9 Re=uest fo# uotation ? P#o$osal 29391%9For procurement e)o PG8 15000 at )east tree ;uotations i)) e otained -rom te mar!et9
29391"9For procurement aove PG8 15000 Re=uest fo# uotation?P#o$osal
Price ;uoted
•
upp)iers previous record and per-ormance
•
•
Ai)it* o- te supp)ier to render satis-actor* service and Factors !eeping in vie o- OPD needs9
2939209 Procurement Committee i)) se)ect te supp)ier ased on aove mentioned -actors9 2939219Committee i)) record te reason on te #inutes -or Procurement Committee9 A)) memers i)) sign te minutes9 C= i)) give is $na) approva) on te recommendation o- Procurement Committee9 2939229Admin i)) maintain and trac! te record o- )oca) vendors in endors> Director*9 Pu#c*ase O#"e# 2939239Pu#c*ase O#"e#
74 FI.ED A !!ET! 7434 Polic& 391919Fixed asset purcased * OPD i)) e capita)i/ed as per te prescried criteria9 391929nitia))* a)) assets i)) e recogni/ed at cost o- ac;uisition p)us oter costs direct)* attriuta)e to te ac;uisition9 391939Depreciation i)) e carged to income and expenditure account * app)*ing reducing a)ance metod9 Depreciation i)) e provided * using te rates as prescried9 391949Depreciation i)) e ca)cu)ated and accounted -rom te mont te asset is avai)a)e -or use i)e no depreciation i)) e carge -or te mont te asset is eing disposed o?9 391959o asset i)) e ta!en out o- te premises o- OPD itout proper approva) * C= Annexure N +ate Pass FormJ9 391969P*sica) toc! 'a!e i)) e carried out ;uarter)* asis9 3919%9Fixed assets ic are oso)ete orn out or no )onger re;uired i)) e so)d scrapped as considered appropriate * te C= andor B.D9 +ains and )osses on disposa) o- $xed asset i- an* i)) e inc)uded in income and expenditure9
7464 Res$onsibilit& 392919'e sa-eguarding o- $xed assets i)) e responsii)it* o- concerned manager and sta? o)ding te asset9 'is inc)udes ensuring
on)*
te
autori/ed
persons
use
tat
asset
sa-eguarding against te-t and damage and remova) -rom te premises it approva)9
7474 P#oce"u#es 393919Fixed Assets i)) e capita)i/e as per te -o))oing criteria7
Ite'
Desc#i$tion
T*#es*ol"
on@ expenda)e
tems it unit cost o- more tan PG8 5000 and use-u) )i-e o- more tan one *ear9
Capita)i/e
=xpenda)e
tems it unit cost o- )ess tan PG8 5000 and use-u) )i-e o- )ess tan one *ear9
Do not capita)i/e
Consuma) es
tems tat are consumed and exausted in a sorter time period )i!e stationer* and o?ice supp)ies9
=xpense out
393929'e rates o- depreciation -or te di?erent categor* assets are as -o))o7 Rate Catego#& + $e# annu',
i)
Bui)ding
i)
.?ice e;uipment
10
urgica) e;uipment
20
Computer e;uipmentAccessories
25
Computer o-tare intangi)e
20
Furniture and $xture
10
eic)es
20
Recei$t of Fi%e" Assets 393939A)) $xed assets received i)) e inspected * te Procurement Committee9 393949n case assets are not in accordance it te re;uirements as speci$ed in te Purcase .rder tese i)) e returned to te supp)ier -or rep)acement9 393959A-ter inspection Goo"s Recei(e" Note : i)) e prepared * Admin -or te $xed assets9 +8 i)) e sent to #anager -or approva)veri$cation and distriuted as -o))o7 .rigina) 7 'o $nance and accounts department9 Dup)icate 7 'o person inspecting te assets9 Fi%e" Assets I"entication Nu'be# 393969=ver* $xed asset i)) e assigned a uni;ue identi$cation numer constituted as -o))os7 Donor code
Asset t*pe
e;uentia) numer
Ac;uisition #ont & Kear
4 digits
2 digits
2 digits
4 digits
4 digits
3939%9Fo))oing areviations i)) e used -or coding purposed -or identi-*ing di?erent categories o- assets9
Catego#&
0ni=ue Co"e
Asset
Bui)ding
BD
.?ice e;uipment
.=
Computer Accessories
T&$e
CA
Furniture and $xture
FF
#otor eic)es
#
3939"9For )ocation code initia)s o- te speci$ed )ocation o- te asset i)) e used -or periodic inspection o- asset9 3939(9Admin i)) a?ix te uni;ue asset identi$cation numer on te asset under te supervision o- Finance9 3939109 For trans-er o- asset to an* department Asset Issuance Fo#'
Gept in records o- Admin
Dup)icate
'o te concerned department
'rip)icate
'o Finance
Fi%e" Assets Registe# 3939119Fi%e" Asset Registe#
At te time o- purcase o- an* ne $xed asset
•
At te time o- disposa) o- an* $xed asset
•
An* suse;uent capita)i/ation o- expenditures and
•
An* rite o?9 3939139Admin i)) revie and counter sign te $xed asset register at te end o- eac ;uarter9 De$#eciation 3939149Accounts and Finance .?icer i)) prepare deprecation or!seet and veri-* Lourna) oucer at *ear end to record depreciation -or te *ear9
3939159Depreciation or!seet and Lourna) oucer i)) e cec!ed * #anager Finance and Accounts approved * C=9 Annual P*&sical Ins$ection of Fi%e" Assets 3939169Annua) p*sica) inventor* count o- assets i)) e carried out * a team comprising o- te -o))oing memers7 •
•
Finance and Admin
Re$ai#?Rene-al of Fi%e" Assets 39391%9An* $xed asset tat re;uires repairrenea) i)) e sent to repair a-ter te prior approva) o- C=9 39391"9- it is -ound tat asset dec)ared is oso)ete and not repaira)e or a ma,or maintenance expense is re;uired ere costs -or repair is more tan te ene$ts to e rea)i/ed -rom te asset te -act i)) e noti$ed to Asset Disposa) Committee9 Dis$osal of Assets 39391(9C= i)) receive signed re;uest -or te disposa) o- de-ectiveoso)ete $xed asset -rom Asset Disposa) Committee9 3939209Asset Disposa) Committee i)) comprises te comination o- an* tree o- -o))oing memers designated * B.D7 •
C=
•
P#s
•
#F&A
•
Admin
3939219.n approva) o- te disposa) it is sent to te Admin -or initiation o- te disposa) process9 3939229Admin i)) prepare Asset Dis$osal Valuation Fo#'
@4 A DVANCE! DEPO!IT OPERATING A DVANCE
@434 Polic& 391919 Cas i)) e trans-erred to emp)o*ees on)* -or direct programmatic expenditures suc as training activities or te procurement o- goods and services ere an immediate purcase is necessar* and te exact amount pa*a)e is not !non9 391929 ssuances o- cas to emp)o*ees -or trans-er to su@o?ices or $e)d o?ices9 391939 Purcase o- misce))aneous sma)) items tat cannot e purcased troug ce;ue9 391949 n te asence o- signatories te cas re;uirement -or routine o?ice expense9 391959 .perating Advance i)) e sett)ed a-ter te comp)etion o- activit* it in 3 da*s oterise it i)) e ad,usted against sa)ar* o- te particu)ar emp)o*ee9 TRAVEL A DVANCE 491969 Cas i)) e issued to B emp)o*ees in advance against teir proposed trave) re;uest du)* approved * Cie- =xecutive as detai)ed in E8 .P9 4919%9 Finance & Accounts Department i)) on)* consider tose trave) re;uests ic i)) e received e-ore 24 ours o- trave) in case o- out station trave)9 4919"9 'rave) Advance i)) e sett)ed a-ter te comp)etion o- activit* it in 3 da*s oter ise it i)) e ad,usted against sa)ar* o- te particu)ar emp)o*ee9 ! ALARY A DVANCE 4919(9 Advance sa)ar* i)) e issued to emp)o*ees on)* in te situation o- acute persona) $nancia) crises du)* approved * Cie- =xecutive9 4919109 a)ar* advance sa)) e recovered in te same mont troug te pa*ro))9 4919119 Advance sa)) e issues to emp)o*ees maximum 50 o- tota) sa)ar* a-ter 15 t o- te mont9
@464 Polic& 492919 Accounts i)) e responsi)e to maintain a)) sorts o- advances9
@474 P#oce"u#es 49391 'o avai) an* sort o- advance -or =xpense
i)) e sumitted to Finance Department9
B4 C A! AND AN/ B434 Polic& 591919 e an! account -or organi/ation i)) e opened a-ter te prior approva) o- B.D9 591929 A)) an! accounts i)) e maintained in te name o- .PD9 591939 Accounts i)) e maintained as per te re;uirement o- organi/ationdonor9 591949 eparate an! account i)) e pro,ectprogram carried out -or donor9
opened
-or
eac
591959 Ban! account i)) e operated * at )east to signatories designated * B.D9 591969 A)) pa*ments exceeding PG810000on)* #H' e paid troug crossed ce;ues or an!ing instruments9 5919%9 Ban! 8econci)iation tatement o- eac an! account i)) e prepared on mont)* asis and #' i)) veri-* te statement9 5919"9 Ban! account i)) e c)osed a-ter te ritten approva) o- B.D9 5919(9 'e maximum amount o- Pett* Cas mprest i)) not exceed PG825000on)*9
B464 Res$onsibilit& 592919 Finance and Accounts i)) e responsi)e documentation re)ating to an!ing procedures9
-or
a))
B474 P#oce"u#es an5 !ignato#ies 593919 B.D i)) designate tree signatories -or eac an! account9 'e pena) o- signatories i)) e as -o))os7 • •
ing)e #andator* C= 'o .ptiona) P# and #F&A
593929'e )ist o- signatories i)) e distriuted as -o))os7 First Cop*
8espective an!
econd Cop*
Ban! signatories
'ird Cop*
Ban! $)e
593939An* cange in te approved signatories i)) e made a-ter prior approva) o- B.D9 !ignato#ies
593949.n)* one ce;ue oo! i)) e used at an* one time -or eac an! account9 5939598eceipt and issue o- ce;ue oo!s to te autori/ed persons i)) e contro))ed troug C*e=ue oo5 Registe#
Cop* o- Account opening -orm
•
•
Detai) o- an* oter correspondence it an!s9
59391(9A)) record re)ating to an!s i)) e retained at )east -or a
period o- tree *ears in case o- c)osing o- te an! account9 Closu#e of an5 Account 5939209App)ication -or c)osure o- an* an! account i)) e approved * B.D9 5939219 #anager Finance and Accounts i)) otain $na) an! statement and c)osure certi$cate -rom te an! and retain in te an! $)e9 Disbu#se'ent Pa*ment to upp)ier 5939229 Fo))oing documents i)) e received * Finance -or processing o- pa*ments to supp)iers -rom Procurement Committee9 •
8e;uisition
•
8e;uest -or Muotation
•
MuotationsProposa) received
•
Comparative tatement
•
#inutes o- Procurement Committee
•
Purcase .rder a)ong it terms and conditions
•
.rigina) nvoicei))
•
+oods 8eceived ote9
5939239A i)) veri-* te supporting documents to ensure tat7 •
•
•
•
.n)* good re;uisitioned ere ordered +oods invoiced are actua))* received and entered in te record +oods received are according to speci$cations as given in te Purcase .rder Aritmetica) accurac* and contents o- origina) invoice
Pa*ment to Consu)tants service provider 5939249Procedure -or pa*ment to consu)tants service provider is descried in E8 .P9 Rent 59392598ent i)) e paid as per agreement it te oner9 5939269Finance i)) prepare ce;ue e-ore te due date o- pa*ment o- rent c*c)e9
A"(ance fo# E%$enses 59392%9Advance i)) e paid on)* -or approved expenses9 59392"9 =mp)o*ee re;uesting te advance on)* -or te approved activities and i)) prepare A"(ance fo# E%$ense
Designation P#s or #anager Finance and Accounts C=
Ma%i'u' A$$#o(al Li'it - advance does not exceed PG8 3000@ For advances greater tan 3000@
PG8
59392(9 Approva) o- te competent autorit* i)) e cec!ed * Finance and veri$ed * A to ensure te accurac* and genuineness o- a)) documents9 0tilit& ills 5939309Admin i)) co))ect a)) uti)it* i))s e-ore te due date at teir respective )ocations and $)e tem in a separate $)e9 5939319Accounts and Finance .?icer i)) ensure tat a)) i))s are paid e-ore te due date9 5939329A i)) veri-* tat te pa*ments ere made according)*9 5939339C= i)) approve te pa*ment -or i))s9 T#a(eling an" Con(e&ance 5939349Conve*ance carges -or inter cit* and outstation i)) e paid ased on approved trave) autori/ation o- te c)aimant9 5939359 Finance i)) receive approved '=8 it 'A8 -rom te re;uesting person9 5939369Finance i)) process te approved '=8 -or pa*ment it in 05 or!ing da*s9 Final !ettle'ent 59393%9 Finance i)) receive approved C)earance anding and ta!ing over and Fina) ett)ement Form -rom E8D9 59393"9 Finance i)) reca)cu)ate te amount due to emp)o*ee in respect o- sa)ar* provident -und a)ance =.B and ad,usted * an* advanceemp)o*ee )oan a)read* avai)ed9 59393(9#anager Finance and Accounts i)) cec! te ca)cu)ation9 5939409'e amount outstanding i)) e paid to te emp)o*ee itin 03 or!ing da*s o- te $)ing o- -orm * emp)o*ee9
Co'$liance -it* Inco'e Ta% La-s 5939419#anager Finance and Accounts i)) ensure te comp)iance to provisions o- ncome 'ax : at te time o- rep)enisment o- pett* cas imprest a)ong it imprest expense -orm i)e -or
itdra o- an* sort o- cas amount -orm an! e i)) prepare JCas* 1it*"#a-al Fo#'K Anne%u#e FA83>8A4 5939569mprest 8ep)enisment Form and cas itdraa) -orm i)) e cec!ed * te respective P# and veri$ed * #anager Finance and Accounts9 C= i)) approve te -orm9 59395%9 urprise cas counts i)) e conducted at )east once a mont * A9
4 MICROFINANCE 434 Polic& As detai)ed in #FDP .P
464 Res$onsibilit& As detai)ed in #FDP .P
474 P#oce"u#es Dono# Fun"s Recei$t of Fun"s 693919 #anager Finance and Accounts as per agreed scedu)e it donor i)) prepare a re;uest and get teir approva) * C= a-ter approva) sent tat re;uest )etter to donor -or re)ease o- -unds to .PD9 693929 A)) an!ing or monetar* instruments i)) e received #anager Finance and Accounts i)) e !ept under )oc! and !e* unti) deposited9 693939 C= i)) -orard te an!ing instrument to #anager Finance and Accounts -or deposit9 693949 Finance i)) prepare .?icia) 8eceipt as ac!no)edgement veri$ed * #anager Finance and Accounts and issue te same to te donor9 693959 Accounts and Finance .?icer A&F. to prepare te deposit s)ip -or te instrument received and deposit it in te speci$ed an! account9 693969 A&F. i)) prepare Ban! 8eceipt oucer and it i)) e cec!ed * #anager Finance and Accounts and attac copies o- an!ing instrument deposited and an! deposit s)ips a)ong it it9 Re$a&'ent of Fun"s an" !e#(ice C*a#ges 6939%9A&F. i)) prepare a reca)cu)ation seet o- te principa) and service carges pa*a)e inc)uding )ate pa*ment carges i- an* and ensure tat repa*ment is as per terms agreed it te donors9 6939"9A&F. i)) prepare separate crossed ce;ues o- principa) and service carges9 6939(9#anager Finance and Accounts i)) send ce;ues to te donor it te approva) o- C= vide a covering )etter9 6939109 'e )etter i)) contain te ac!no)edgment o- receipt o- ce;ues9 6939119A&F. i)) prepare Ban! Pa*ment oucer cec!ed * #F&A and a-ter getting it approved -rom te competent autorit* i))
record it in oo!s o- accounts9 6939129s $)e * Finance9 Disbu#se'ent Disbu#se'ent of Fun"s As detai)ed in #FDP .P P#ocessing Fee As detai)ed in #FDP .P Reco(e#& As detai)ed in #FDP .P Recei$t of Reco(e#& As detai)ed in #FDP .P Mont*l& Reco(e#& Re$o#t As detai)ed in #FDP .P A";ust'ent ? Re$a&'ent O$e#ational !ubsi"& As detai)ed in #FDP .P Re$o#ting I"entication of P#o(isioning Re=ui#e'ents 6939139At te end o- eac mont #F&A i)) receive a cop* o- overdue report -rom P# -or te overdue port-o)io -a))ing in di?erent ageing periods9 6939149)a rates as speci$ed in te accounting po)ic* section i)) e used -or providing provision on )oans -or di?erent aging periods9 6939159Amount tat is overdue -or greater tan $ve da*s i)) e ta!en to ca)cu)ate te amount o- provision as per de$ned percentages9 Mont*l& Reco#"ing of P#o(ision 6939169 As detai)ed in #FDP .P Po#tfolio Re$o#t As detai)ed in #FDP .P Pe#io"ic P#og#ess Re$o#t 69391%9 Donor ma* re;uire an* statement -ormat and reporting -re;uenc* to assess te per-ormance o- micro $nance operations9 69391"9 An* suc statement re;uired * te donor regarding te
micro$nance operations re)evant to A&F. i)) e prepared * #F&A and revieed * P#s9 69391(9#F&A i)) re;uest -or te co))ection o- re)evant data -rom te concerned persons in micro$nance operations9 6939209Finance i)) prepare te report9 6939219A-ter revie * P#s reports i)) e dispatced to donors9
>4 INTER 8F0ND TRAN!ACTION >434 Polic& •
•
•
•
nter@Fund Activities are transactions made * one pro,ect on ea)- o- anoter pro,ect itin te same o?ice or te su o?ices9 'e nter@ Fund Accounts ave een esta)ised to account -or reimursa)e orroing * one pro,ect -orm anoter pro,ect9 uc orroing sou)d e done . accounts sou)d e /ero -or eac mont erever possi)e9
>464 Res$onsibilit& %9291 #F&A i)) e responsi)e -or inter -und transactions and A&F. i)) prepare nter -und 'rans-er Form veri$ed * #F&A and approve * C=9
>474 P#oce"u#e Inte#8Fun" Acti(it& bet-een T-o an5 Accounts n tis procedure -unds are temporari)* orroed * a pro,ect ose monies are deposited in one an! account -rom anoter pro,ect ose monies are deposited in anoter an! account9 'is is a casJ transaction it is a p*sica) trans-er o- cas9 Borroing -rom an* +overnment +rant -unds is proiited9 • •
Borroing * a donor & pro,ect in excess o- te a)ance sti)) avai)a)e -or conversion * tat donor & pro,ect is proiited9
n te event tat it is necessar* due to a temporar* sortage o- cas or insta))ment is due in a pro,ect to orro monies -rom anoter pro,ect te =xecutive Director ma* as! te #anager Finance and
Accounts to ma!e an nter@Fund 'rans-er9J 'at is te #F&A i)) set up an nter@Fund 8eceiva)e -or te pro,ect )ending te cas and an nter@Fund Pa*a)e -or te pro,ect orroing te cas 'e #F&A i)) $rst determine i- te nter@Fund 'rans-er i)) re;uire te moving o- cas -rom one an! account to anoter an! account9 'at is i- te monies -or te to pro,ects are e)d in to di?erent an! accounts ten cas i)) ave to e p*sica))* moved -rom one an! account to te oter9 As tis represents an actua) cas transaction te #F&A i)) prepare
Pa*a)e ic i)) e )i;uidated on)* en te )endingJ -undpro,ect is reimursed9 .n te Cas 8eceipts oucer te A. i))7 Debit t*e OPD an5 Account C#e"it t*e inte# Fun" Pa&able P#o;ect Na'e o# Account No4 'e A&F. must ta!e care to inc)ude te pro,ect nameaccount no9 in te vendor numer it is te on)* means to trac! over time )ending pro,ects are to e reimursed * tis orroing -undpro,ect9 'is e?ective)* esta)ises te nter@Fund Pa*a)e9 upporting documents are ten attaced to tis 8eceipt oucer and ten sumitted to te Cie- =xecutive or iser de)egate -or revie and signature9 And a-ter approva) it i)) e $)ed as per te norma) practice o- $)ing9 E.AMPLE Pro,ect A and Pro,ect B ave separate an! accounts9 'e genera) )edger account -or te Pro,ect A an! account is Eai Ban!
Deit
Inte# fun" Recei(able P#o;ect
P/R 399999
Credit
abib an5 Li'ite" A?C
P/R
@>393
399999
'e A. ou)d on a Cas 8eceipts oucer record te -o))oing in te oo!s o- Pro,ect B7 Acct
Deit
Allie" an5 Li'ite" A?C
P/R 399999
@>39B
Credit
Inte# Fun" Pa&able P#o;ect A
P/R 399999
And at te time o- ad,ustmentrepa*ment o- tis amount te same entries i)) e reversed and oo!ed in te respective )edger9 Inte#8Fun" T#ansaction -it* in !a'e an5 Accounts n tis procedure -unds are temporari)* orroed -rom one pro,ect * anoter pro,ect9 - monies -or te )ending and orroing pro,ects are e)d in te A#= BAG ACC.H' ten te nter@Fund transaction is in -act a non@casJ transaction cas is not p*sica))*J eing moved eteen to an! accounts te nter@Fund 8eceiva)e and nter@Fund Pa*a)e sou)d ot tere-ore e recorded on one .PD Lourna) oucer9 .n te Lourna) oucer te A&F. i)) -or te )endingJ -undpro,ect7 Debit t*e Inte#8Fun" Recei(able P#o;ect A fo# establis*ing t*e Inte#8Fun" Recei(able C#e"it t*e Inte#8Fun" Pa&able P#o;ect t is ver* critica) & sensitive tat te A&F. sou)d ta!e extra care in entering te appropriate pro,ect numers in -ront o- te account code9 'is is te on)* a* to trac! over time ic orroing pro,ects oe cas to ic )ending -undpro,ects9 upporting documents are ten attaced to tis Lourna) oucer and ten sumitted to te Cie- =xecutive or is de)egate -or revie and signature9 And a-ter approva) it i)) e $)ed as per te norma) practice o- $)ing9
Inte#8Fun" Re$o#ting 'e nter@Fund Pa*a)es & 8eceiva)e sou)d e generated at te mont end to !no te outstanding a)ances in te respective pro,ect -or ad,usting tose at te mont end9 'e #anager Finance Accounts i)) use tis report to ensure tat te tota) o- tese to reports are e;ua)9 A)) nter@Fund Pa*a)es must e o?set * an nter@Fund 8eceiva)e and net to /ero at eac mont end erever possi)e9 'is report sou)d e run prior to c)osing te current mont to ensure te re;uired a)ancing o- inter -und activit*9
4 FINANCIAL A NALY!I! 434 Polic& Financia) ana)*sis -or management purpose i)) e prepared at te end o- eac ;uarter on *ear to date asis and -or externa) reporting at te end o- eac *ear9
464 Polic& A and #anager Finance and Accounts i)) e responsi)e -or te preparation o- $nancia) ana)*sis and nterna) Audit Committee i)) e responsi)e -or revie9
474 P#oce"u#es Financia) ana)*sis i)) e re;uired -or te -o))oing management decisions7 •
'o manage te $nances to acieve te strategic goa)s o- te institution
•
'o increase pro$tai)it*
•
'o reac se)-@su?icienc*rea!even point
•
ncrease e?icienc* especia))* reducing te cost per c)ient
•
•
'o ca)cu)ate te optimum )eve) o- eac di?erent operationa) expense inc)uding te cost o- -unds 'o manage te costs o- uman resources as part o- overa)) uman resource management
•
'o dea) it te e?ect o- in:ation
•
For )oan )oss reserve po)ic*
•
For rite@o? and rescedu)ing po)ic* and
•
'o underta!e trend ana)*sis and to compare per-ormance against p)anned per-ormance
actua)
Four t*pes o- ratios i)) e ca)cu)ated * A to serve te aove purposes7 !0!TAINAILITY ?PROFITAILITY R ATIO! Ratio 8eturn 8.=
Fo#'ula on
e;uit*
et operating income N 'axes Average e;uit*
Ad,usted return on e;uit* A8.=
Ad,usted net operating income N 'axes Average e;uit*
8eturn 8.A
on
assets
et operating income N 'axes Average assets
Average return on assets
et ad,usted operating income N 'axes Average assets .perating revenue
.perationa) su?icienc*
se)-@
Financia) provision expenses
expenses expense
Q Q
et operating income Pro$t margin
.perating revenue Ad,usted operating revenue
Financia) su?icienc*
se)-@
Financia) expenses Q
A !!ET! ?LIAILITY M ANAGEMENT Ratio Kie)d on gross )oan port-o)io Current ratio
Fo#'ula 8evenue -rom )oan port-o)io Average gross )oan port-o)io ort@term assets
ort@term )iai)ities Cas revenue -rom )oan port-o)io Kie)d gap
et )oan port-o)io x =xpected annua) *ie)d
Funding ratio
expense
nterest and -ee expense on -unding )iai)ities Average gross )oan port-o)io
Cost o- -unds ratio
nterest and -ee expense on -unding )iai)ities Average -unding )iai)ities
PORTFOLIO 0ALITY R ATIO! Ratio
Fo#'ula
Port-o)io at PA8 ratio
ris!
Port-o)io at ris! R da*s +ross )oan port-o)io a)ue o- )oan rite o?
Irite o? ratio Average gross )oan port-o)io Ad,usted ratio
rite o? Ad,usted va)ue o- )oans rite o? Average gross )oan port-o)io
8is! coverage ratio
!TAFF PROD0CTIVITY OR EFFICIENCY ?PROD0CTIVITY R ATIO! Ratio Na'e
Fo#'ula o?icer
Personne) productivit* A
umer o- active orroers umer o-
umer o- active orroers umer o- personne)
Ratio Na'e
Fo#'ula
Personne) productivit* B
umer o- active c)ients umer o- personne) a)ue o- )oans disursed
Average distriuted 'ota) numer )oan si/e during period Average outstanding si/e .perating ratio
o-
)oans
disursed
+ross )oan port-o)io )oan
expense
umer o- )oans outstanding .perating expense
Average gross )oan port-o)io .perating expense
Cost per orroer
Average numer o- active orroers .perating expense
Cost per C)ient
Average numer o- active c)ients .ter expenses
.ter expense ratio
Average gross )oan port-o)io
H4 GENERAL H434 Polic& (91919 'e preparation veri$cation and approva) o- a)) te voucers i)) e as -o))o7 P#e$a#e" b& Accounts and Finance .?icer
Ve#ie" b&
A$$#o(e" b&
#anager Finance and Accounts
C=
(91929Financia) tatements -or management reporting purpose i)) e prepared at te end o- eac mont9
H464 Res$onsibilit& (92919 Finance #anager i)) e responsi)e -or te coordination o- audit o- annua) $nancia) statements o- .PD9
H474 P#oce"u#es Vouc*e#s Fo))oing is te )ist o- voucer used -or recording o- entr* in accounts )edgers7 Vouc* e#
Desc#i$tion
L
Lourna) oucer
B8
Ban! oucer
BP
Ban! oucer
Pa*ment
C8
Cas oucer
8eceipt
CP
Cas oucer
Pa*ment
P#e$a#e" For non cas items o- ncome =xpense or -or Ad,ustment
8eceipt At te time o- depositing CasCe;ue in an! At te time o- issuance o- ce;uetrans-er o-unds -rom an! Ien amount is received in cas Ien amount is paid in cas
oo5s to be Maintaine" Boo!s to e maintained at .PD7 oo5s of Accounts •
Ban! Boo!
Ot*e# oo5s •
eic)e
•
•
Cas Boo!
•
=xpense
•
Fixed Asset 8egister Advance
•
•
8eceiva)e
Pa*a)e
•
Pett* Cas
•
•
•
•
mprest
•
#ont)* eic)e Consumption 8eport
Fue)
on =xpanda)e =;uipment #aintenance
tationer*
Attendance 8egister #ont)* .vertime eet 8egister o- Personne) usage o- .?ice te)epone9
Closing P#ocess Accounts i)) e c)osed manua))* and F on mont)* asis9 tandard mont)* ad,ustments i)) inc)ude7 Depreciation Prepa*ment carge o? and Accrua)s and provision9 Dono# Re$o#ting • • •
•
•
•
Finance i)) prepare te re;uired in-ormation and statements -or te donor as per te agreed -ormats9 #anager Finance and Accounts i)) veri-* te accurac* o- te reporting and i)) -orard te same to C= -or c)ari$cation9 .n reconci)iation * #anager Finance and Accounts and revieing * P#s te report i)) e sent to C= -or veri$cation9
AD0!TMENT OF DED0CTION! !0RPL0! AMO0NT De"uction f#o' !ala#ies •
•
A)) oter deductions suc as =.B advances emp)o*ee )oan and taxation i)) e deducted -rom a)) emp)o*ees regard)ess te* are getting sa)ar* -rom an* donor -unded pro,ects or .PD on account9 A)) tese deductions i)) e dran -rom donor -unded pro,ects or .PD on account and deposited in separate account at te time o- disursement o- sa)aries9 A)) deductions i)) e treated under ead9
an5 P#ot P#o;ect !u#$lus A'ount •
Ban! pro$t -rom an* donor -unded programpro,ect accounts i))
•
e treated as an ncome and trans-erred to te .PD on account at te c)osing o- $nancia) *ear as per donor agreement9 urp)us amount in an* donor -unded pro,ect accounts ic as not c)aimed * donor i)) e treated as an ncome and trans-erred to .PD on account at te c)osing o- pro,ect period$nancia) *ear9
334 INTERNAL A 0DIT
3343 Polic& 1191919 nterna) Audit A i)) exc)usive)* provide te interna) audit -unction itin organi/ation on mont)* & ;uarter)* asis9 1191929 A i)) e given direct and read* access to records reports $)es contracts voucers and oter documents as te* consider necessar* -or te proper conduct o- teir audits9 1191939 At te conc)usion o- ever* investigative assignment A i)) sumit a ritten report$ndings to te Cie- =xecutive 1191949 A i)) ensure tat $nancia) and operating in-ormation is accurate and re)ia)e 1191959 A i)) ensure te dai)* up@dating o- accounts on manua) and F9 1191969 A i)) provide pro-essiona) assistance & guidance to Accounts and Finance department en it is needed9 11919%9 A i)) ensure te practica) imp)ication o- po)icies and procedures on regu)ar asis9
33464 Res$onsibilit& nterna) Auditor i)) e so)e)* responsi)e to initiate interna) audit at organi/ationa) and program )eve)9
33474 P#oce"u#es 119391A as per p)an i)) conduct interna) audit o- accounts and $e)d units regu)ar)*9 119392A i)) produce interna) audit reports$ndings a-ter ever* visitactivit* and sumit to C=9 119393A i)) p)an periodic audit activities at organi/ationa) )eve)9 119394A i)) prepare ana)*tica) reports on Accounting & Financia) management9 119395A i)) conduct annua) interna) audit a-ter c)osing te $nancia) *ear and sumit teir report$nding to C=9