VAXIGLOBAL Finance Policy

This financial management policy is a manual that covers the accounting policies, systems and procedures of VAXIGLOBAL It is developed not only for governing the financial transactions of the organization so that its staff can follow the set systematic procedures but also to fulfil local statutory requirements and demonstrate the strong management practices adopted by VAXIGLOBAL.  

 “1. Introduction

1.1 Scope of VAXIGLOBAL Finance Policy

VAXIGLOBAL Finance Policy describes the accounting policies, systems and procedures to be used by the organization. The Policy will cover the input, processing, output, control and distribution of financial data. It has been developed to set out the accounting policies and procedures that will:

  1. Ensure that the organization’s books of accounts are prepared to conform to sound accounting principles and practices.
  2. Enable the management to obtain accurate and timely financial reports on monthly basis, thereby promoting sound financial management.
  3. Ensure correct and accountable use of funds and other resources in line with generally accepted accounting principles and organisations’ best practice reporting requirements.

The main purpose of the Policy is:

  1. To assist in the maintenance of controls.
  2. To provide training on maintaining resources.
  3. To be used as a reference document by the staff, management, auditors and other stakeholders.

The procedures have the following objectives:-

  1. To enhance completeness and accuracy of the data posted from source documents (say invoices, payments receipts, journal and cashbook) to the computerized system.


  1. To provide accurate and reliable reports to enable management to perform effective control over the operations of the organization.
  2. To detail the operation and administration procedures for input, processing, output and distribution of data to ensure security of data and documents.

The Policy has been written for use as follows:

  1. As a means of reference to management, supervisors, new and existing accountants staff, auditors, and as the basis of training staff, and ensuring that appropriate controls are in place.
  2. As a clearly defined list of the tasks to be carried out by each individual
  3. As a timetable for processing transactions and producing reports
  4. As a guide to evaluators and any monitoring consultant who may wish to review the institution’s progress.

“1.2 Updating the Finance Policy

The updating of the manual is the responsibility of the finance committee consisting of concerned authorities from finance & accounts as well as the Executive Director and approved by the Board. The committee must ensure that:

  1. The manual is kept up-to-date
  2. The manual continues to set out the procedure that must be followed in the operation of the system and procedures
  3. Sufficient copies of manuals are available
  4. Amendments to the manual are properly authorized and communicated to concerned parties immediately. It is envisaged that, it may be necessary to amend the manual every year to accommodate any changes. The finance committee must ensure that there is a list of all the persons to whom the manual has been issued so as to ensure that the amendments issued are completed promptly.
  5. Each amendment to the procedures manual must be given a unique code and dated; the finance manager is responsible for ensuring that each procedure issued has been properly amended.

1.3 Responsibilities of User Staff


All personnel with a role in the management of organization’s financial operations are expected to uphold the policies in this manual. It is the intention of organization that this accounting manual serves as our commitment to proper, accurate financial management and reporting.”

“2. Accounting Policies & Procedures

2.1 Basis of Accounting

  1. VAXIGLOBAL shall prepare its accounts on the basis of historical basis of accounting but assets shall be re-valued from their historic cost to reflect current values as necessary.
  2. The organization shall apply accrual based accounting method. Revenue and grant/donations shall be recorded in the accounting period it is received and expenses recognized when incurred. Loan and Grant revenue is recognized when received. Other revenues are recognized in accordance with the accruals concept.
  3. Grants and donations if any shall be recorded separately from operational activities. They will be shown “below” the operating line on the Income Statement, together with nonoperating income and expenses and taxes. When transferred to the Balance Sheet, they will not be included in the Retained Earnings from operations, but in Contributed Capital (or Donated Equity).
  4. In-kind contributions must be recognized through journal adjustments that are supported by appropriate and objective documentation (e.g. agreements, formal letters or memos, Memorandum of Understanding).

2.2 Maintaining Accounting Trail

Every transaction would need to be traced back and forth since the account=books are maintained in a set pattern.

The trail is as follows:

Expense—–Cash memo——voucher——cash book——ledger——trail balance——income

and expenditure statement, balance sheet

Hand in hand with an accounting trail, we can trace what we can call as a programmatic trail.

Program plan—–Activity to be performed—–Authorization from the program head for the expense related to the activity—–Perform the activity—-Maintain the relevant program records


The accounting trail is important as it helps to check/countercheck expenditure incurred/ activities done and thus helps in maintaining a transparent system.”

 3. Cash Handling

3.1 Cash Account and Transactions

Cash transactions are to be resorted only for petty expenses and when /where banking facilities are not available. No claim exceeding US$500 should be settled through cash payments. These should invariably be by account payee checks only. As a matter of procedure and control, the attempt should be to minimize the number of cash transactions.

3.2 Withdrawal of Cash from Bank

  1. The Cash Withdrawal Form/Money Indent to be filled up and signed by the Finance and Admin manager and authorised by the Executive Director.
  2. The cash balance available and the estimated expenses would need to be computed.
  3. The authorized persons must verify the requirement before signing the check for withdrawal of cash.
  4. The signature of the person presenting the check and receiving the cash should be attested on the back side of the check by one of the authorized signatories.
  5. A Cash Receipt (Contra) voucher to be prepared and accounted for by the accountant on the same day.
  6. The Cash Account (Manual) to be updated for receipt of the Cash.

3.3 Cash Payments

  1. Cash payments will be made only after preparing the Payment voucher.
  2. All vouchers should be pre-printed with machine made serial numbers
  3. The Voucher has to be approved by the competent authority before payment. (As per the requirement of individual projects)
  4. The Payee must sign the voucher for having received the payment.


  1. In case the competent person is not present, the voucher must be verified/approved by any other person standing-in for the person per before release of the payment.

3.4 Cash Verification

  1. The Finance Officer should physically verify the cash balance occasionally and compulsorily at the end of the month.
  2. The Cash Account record should be signed by the person handling the cash and the Finance Officer as and when the physical verification of cash is carried out.
  3. Any discrepancy noticed during the physical verification should be recorded and reported in writing to the person concerned immediately.

3.5 Controls to be exercised

  1. Third parties should not be allowed access to the accountant or the safe. Cash should be paid to them in the front office.
  2. Cash is handled by only one designated person who is responsible for it.
  3. Maximum and minimum cash limits to be strictly observed.
  4. Accounting of cash receipts/payments is done on a daily basis.

3.6 Petty Cash

  1. Petty cash shall be maintained on an imp rest basis. At any given time, the cash and receipts in the cash box shall total the imp rest level. The level shall be maintained at US$200.
  2. Only the accountant will handle petty cash. Actual cash will be spot-checked and verified by the Director/finance manager at least once per week. The staff person in charge of the fund will reimburse for any discrepancies.
  3. All requests for petty cash must be signed by the finance officer on a pre-numbered voucher.
  4. A check to replenish the fund shall be issued when the fund is low, and at the end of every month.
  5. The cash and vouchers shall be kept in locked box or safe.”


4. Salaries and Advances

4.1 Salaries

The following is the procedure on salaries:-

  1. All permanent employees shall be issued with appointment letters signed by the Director and employee-signifying acceptance of the terms and conditions set forth thereto. The appointment letter shall contain the initial salary, responsibilities, duties and the general terms and conditions.
  2. Subsequent changes in salary, responsibilities, duties, terms or conditions of employment shall be communicated to the employee in writing.
  3. A personal file shall be opened for every employee. Copies of job application letters, Appointment letters and any other correspondence between employer and the employee shall be kept in this file.
  4. Salaries shall be paid monthly in arrears. A salaries schedule showing the gross pay, advances, deductions and net pay shall be prepared by the Accountant, checked and verified by the Finance Officer and approved by the Director prior to the preparation of payment vouchers and the check.
  5. A personal data card shall be opened for each member of staff. Salaries shall be paid by check through the respective bank accounts.
  6. Employees shall be issued with a pay slip every month, which will show the computation of his/her net salary.
  7. Signing the payment vouchers for the net pay, and the monthly transfer sheets where applicable shall evidence authorization of salary payments.

4.2 Salary Advances to Staff

Staff advances shall be given upon request in accordance with regulations stipulated in the personnel policies and procedures manual (by complete, signed and authorized Staff Advance Authorization form, SAAF). An Advances ledger account should be opened and reconciled at every end month. However, all advances should be approved subject to the availability of funds.

4.3 Pending Advances  


A statement of funds lying with outsiders and staff should be recorded at the end of every month-end. It is  necessary  to  review  it  on  a  monthly  basis  to identify  whether  any  deposits/advances  are  lying  unadjusted  or  overdue  for settlement. While  it  is  possible  that  the  actual  date  of  payments  and  the purpose of which the deposit/advance was given gets obliterated by passage of time, this report will regularly give details of such funds lying elsewhere.

4.4 Travel Expenses

Travel expenses incurred by staff or any other authorized person shall be reimbursed according to the regulations set out in the Human Resource Policies and Procedures Manual.

4.5 Travel Advances to Staff

Travel advances shall be granted in accordance with the above mentioned regulations. A separate staff debtor account shall be opened for each advance granted. Any advances not accounted for within two weeks shall be recovered from the salary of the employee concerned without prior reference to the employee.”

 “5. Operating Bank Accounts

5.1 Bank Account  

Bank account for the project funds shall be opened only in a nationally recognized bank or any other bank authorized by the central bank of the country. Necessary authorization to open any bank account or alter its manner of operation would need to be got in writing from the Board. A separate bank account will be opened depending upon the project need.

5.2 Authorized Signatories

  1. Every check/instrument is signed by at least two signatories drawn from the Board Chairperson, Treasurer, Secretary and/or the Director.
  2. A staff that has access to bank account and cash account is not entitled to be an authorized signatory.

5.3 Authority to Sign

The authority to sign should lie with selected executive members of the Board. The bank is authorized to undertake any written instructions, signed by two of the signatories, for transacting any financial business from time to time.

5.4 Closing of Bank Accounts


Any bank account not required to be operated must be closed immediately. The

Finance/Accounts person has to take the matter with the Director and procure in writing the obtaining necessary resolution from the Board. When it is decided to close a bank account, the following actions should be completed:

  1. Transfer balance in the account (leaving the minimum amount required) to the other bank account.
  2. Surrender all the check leaves to the bank under a receipt.
  3. After receipt of the resolution, deliver it to the bank under receipt and transfer the balance to another account.
  4. Confirm closure of the bank account and transfer of balance to the competent account.”

6. Bank Transaction

6.1 Bank Receipts

  1. All receipts are to be acknowledged by issuing an official receipt. The date of receipt, its accounting and the date of deposit of the check/draft to the bank account should be the same. The relaxation can be only in view of banking hours or bank holidays.
  2. The bank deposit slip should be attached with the Receipt Voucher.
  3. No receipt should be issued on the last day of the month if the instrument cannot be deposited with the bank on the same day.

6.2 Bank Payments

  1. Payment Voucher has to be prepared before preparing any check.
  2. Check should not be prepared, for whatever reason, if sufficient balance is not available with bank.
  3. All Vouchers have to be verified and approved before payment is released.
  4. Payment has to be made only against original bills and claims. Any type of copy of bill or claim should not be entertained.
  5. All supporting documents should be attached with the Payment Voucher and filed according to serial number.


  1. Checks should be written legibly and doubly ensure that the amount in words and figures are the same.
  2. All checks have to be crossed. A Rubber Stamp stating “A/c Payee Only”
  3. Post-dated checks are not to be issued.
  4. All checks are stamped “for the Name of the Organization

6.3 Controls to be exercised

  1. All letters/instructions to the bank should be signed by the authorized signatories only.
  2. Checks in advance or in blank should never be signed.
  3. Un-cashed checks should be cancelled within a reasonable period.
  4. Specimen signatures should not be left unsupervised.
  5. Check books should always be kept under lock and key. Only authorized persons should be allowed to handle them.
  6. Using a carbon (black side up) under the check will leave an impression on the reverse of the check making it difficult to alter.
  7. A receipt after payment by check should be insisted.
  8. Bank reconciliation statement has to be done on a monthly basis.

6.4 Bank Reconciliation Statement

This has to be done every month to ensure the balances as per the bankbook and the passbook tally. Following the reconciliation make sure that entries are passed (if any) for bank charges, interest received etc. in the books immediately.”

7. Invoice Validation

7.1 Essentials of a Voucher

  1. Project name – in order to identify that the voucher belongs to a particular project, the project name needs to be stamped / marked on the voucher.



  1. Voucher number – the voucher should be numbered and these voucher numbers should be pre-printed. The voucher book should be officially issued to the person responsible for preparation of vouchers. Any vouchers wrongly written should be marked `CANCELLED’ across the face of the voucher and left in the book itself. Hence, either the vouchers would have been used and taken into the cash book or be left as cancelled or accounted for as balance remaining.
  2. Date and the serial number of the voucher used.
  3. Classification – The cost centres and line items are clearly specified in the proposal. On the basis of the nature of expenses, it is verified that the expense is correctly classified into the various line items as appearing in the proposal.
  4. Narration – there should be a detailed narration in support of the classification showing the description of the transactions.
  5. Amount – it is verified that the amount on the voucher is equal to the amount reflected by the supporting documents, or matches any adjustments effected (e.g.: advance payments adjusted)
  6. Supporting documents – these are in the form of original bills, which are\ the real proof of transactions based on which payment is affected. The classification of the expense is based on the nature of expense reflected by these documents and the amount on the voucher should be the amount reflected by these documents.
  7. Signature of the person preparing the voucher
  8. Signature of the person authorizing payment (To verify with the delegation of powers of each member authorized within the organization to approve payments)
  9. Signature of the person receiving payment
  10. Defacing of vouchers and supporting documents by a `PAID’ stamp, subsequent to payment to avoid duplication of payments, and providing reference numbers of vouchers and check number if relevant.”

 “7.2 Checks to be done before passing a voucher for payment

  1. Whether required supporting documents are present
  2. Checking the supporting document.
  3. Payment should be made only against a valid invoice in original.


  1. Approval by concerned person & authorized signatory.
  2. Verification of accuracy in accordance with the order/letter/other documents if any.
  3. Verification of numerical accuracy
  4. Checking of advance payments made if any or details of part payments made if any.
  5. Making sure that payment has not being made twice for e.g., by making all extra copies of bills as “extra copies” and by making all paid vouchers as paid .
  6. Ensure that payments are made on time.
  7. All major payments should be made by checks. Payment by cash should be restricted to minor purchases and where inevitable.

7.3 Supporting document for vouchers

  1. All bills should be in original. Payment should not be made against a quotation, Performa bill, copy of a bill or a fixed bill.
  2. All supporting documents should be authorized by the person initiating the payment.
  3. It is the responsibility of each person who is responsible for buying goods/ services in the project office to check each bill for its validity.e., check that the description of items, number of items, cost per unit and total cost, date of the bill and name of payee (i.e. name of project) are accurate. Payments should be made only after checking these details.
  4. Any mistake/ discrepancy should be pointed out to supplier /shop keeper before payment and if an alteration is necessary, the supplier /shop keeper should make the change right then and put his/her initials and date. If this results in a change in any of the amounts on the bill it is particularly important that supplier /shop keeper clearly writes himself on the bill the payment received in words. The management reserves the right to accept such altered bills or not. A better option would be to obtain a fresh bill if possible.
  5. No other alteration in the bill by project staff is permissible. If at all an alternate is unavoidable e.g., a mistake in the date by supplier which was not corrected such a bill should be brought to the attention of Head of the project who should change it and initial it and a note should be put on the bill why alteration was necessary. The management reserves the right to accept such bills or not.
  6. Invoices should only be in the name of the organization.


  1. Where bills are in local language, please indicate briefly in English the purpose /item on the bill.

Supporting documents for invoice validation

7.4 Checking Output

  1. The input of all invoices be checked for completeness and accuracy.
  2. The Accountant must check the invoices and ensure that the general ledger allocations and other invoice details are correct. Where the accountant identifies that an error has been made, the error on the listing should be circled and the correction initiated and initialled.

7.5 Approval of Invoices

  1. The finance/accounts manager prior to processing should approve all invoices.
  2. The Accountant must ensure that all invoices have been authorized the Director and head of project manager. A week time will be allowed for approval.
  3. The head of the relevant department must ensure that the invoice is sent to the Accountant within a week of receipt of the invoice. Once the invoice is approved it is sent to the Accountant. If the finance manager is not satisfied with the invoice and cannot approve it for payment, it should be regarded as a disputed invoice.

At the end of the month the Accountant should agree the balance on the control account to the supplier’s listing. If there is any difference, reconciliation should be prepared. The Accountant must also ensure that a monthly reconciliation is done between the General ledger balance and the supplier’s statement of account balance. The reconciliation has to be prepared and reviewed on a monthly basis and the file maintained by the Accountant.”

8. Maintaining Cash Book  

A cashbook is a primary book of entry that is prepared after a voucher for a particular transaction. The cash book records all transactions in which cash /bank receipts are involved.

  1. A double column cashbook that can act as a bankbook or a single column cashbook (in case a bank book is maintained separately) has to be maintained.
  2. No cutting or alterations should be made in the cashbook. Correction fluid should also not be used. Any mistake should be corrected by passing a rectification entry.


  1. Cashbooks have to be written regularly (as and when a transaction takes place). All cash balances should be inked up regularly.
  2. The Cashbook has to be tallied checked and signed by the competent authority or any other appropriate authority every month.
  3. Cashbooks should always remain at the office.” Account Books and Documents to be maintained
  4. Cash Payment/Receipt Vouchers & Book
  5. Bank Payment/Receipt Vouchers & Book
  6. Summary/Daily Petty Cash Book
  7. General Ledger
  8. Fixed Assets Register
  9. Contract/Registration Documents
  10. Attendance Register
  11. Budget Copies of various grants
  12. Copies of Consultancy agreements
  13. Capital assets approvals
  14. File of original bills of assets purchased
  15. Copies of all Contracts and agreements.
  16. Stationery Register
  17. File containing Bank Mandate and authorized signatories.
  18. Quotation files for all purchases
  19. Advance Payment Register (Advance to third parties & Staff Advances)


  1. Check issue register
  2. Cancelled check register
  3. Donation receipt issue register

10. Receipts and Payment Account  

This is like a summary of the cash and bank book and starts and ends with the cash and bank balances. It differs from the income and expenditure statement in that the income and expenditure statement does not show details of loans, sale of assets, recovery of staff advances etc. At the end of every quarter a receipts and payments account is prepared.

11. Preparation of the Final Accounts

Final  accounts  include  a  balance  sheet  and  income  and  expenditure  account and a receipts and payments account would need to draw up at the end of the year.”

12. Procurement, Stock & Inventory

12.1 Purchasing  

The purchasing function involves:

  1. Identification of needs, for goods and services,
  2. Identification of costs to cover the needs for those goods and services,
  3. Identifying the suppliers, procuring estimates (at least three)
  4. Negotiating favourable trading terms with them,
  5. Placing an order.
  6. Receiving the goods and/or services and paying for them
  7. Preparation of accounting and archiving expenditures.

12.2 Identifying the Supplier

The purchasing function involves:


  1. Credibility of   the   supplier   in   terms   of   being   able   to   supply   the requirements and in time
  2. Cost effectiveness of the goods supplied
  3. Quality of goods supplied
  4. Supplier should meet all necessary formalities in connection with its status as per the rules and regulations of the Government.
  5. Supplier must be able to supply all the good in the requisition/or of the specification prescribed in the purchase order
  6. Must be local, reliable and known
  7. Must be able to supply large quantities if necessary
  8. Past performance
  9. Availability of supplier
  10. Reputation of supplier”

12.3 Control Objectives

The control objectives here will be to ensure that:

  1. All purchases  are  duly  authorized  and  approved  before  the  goods  and services are ordered.
  2. All goods  received  or  services  rendered  are  according  to  specification and in quantities requested for.
  3. Liability for all purchases is accurately reflected in the books of account and that suppliers are paid only in accordance with the agreed term
  4. Goods ordered are actually received into stores as may be appropriate and relevant accounting records updated accordingly.

12.4 General Procedures

  1. The existing procurement policy of the organization must be followed.


  1. For all purchases  of  capital  good,  and  goods  purchased  in  bulk  like stationary  and other supplies, three quotations should be obtained. Then the final supplier is decided upon. However justification should be given in case the lowest of quote is not selected. Quotations  should  be attached  with  the  relevant  vouchers  while  submitting  the  same checking.

12.5 Purchasing Capital Assets

  1. Any non-consumable  item  of  equipment,  needed  to  start  program operations  and  major  capital  expenditures as  outline  in  the  plans  and budgets are called fixed assets.
  2. In the case  of  capital  asset  purchases  and  consumables  in  bulk,  it  is always  healthy  to  issue  purchase orders  clearly  spelling out the terms and conditions of purchase.
  3. As mentioned above, all non-consumable items of expenditure should be purchased with three quotations. It is important here to understand that attractive asserts like camera, tape recorder etc. also from part of fixed. Assets, even   though   their   value   might   not   be   very      Office equipment and IT equipment will also from part of the fixed assets
  4. All incidental charges which are incurred to get the asset to the place where it is situated and to get the asset into operating condition must be added to the cost of the asset.
  5. An inventory of the capital assets should be maintained and updated from time to time.
  6. It is suggested that the fixed assets register is approved and signed by the competent authority after it is updated every six months or annually.
  7. All assets must be given an identification number and such number must be painted on the asset. This number should also be mentioned in the fixed assets register.
  8. Physical verification of assets should be undertaken (preferably by an office bearer or someone of adequate authority) at least once a year. All additions, deletions, modification etc. should be recorded
  9. Contracts Register (for all contracts issued with payment details and other particulars).

12.6 Maintaining a Stock Register  

  1. This is to be maintained at the office where the goods are purchase or stored centrally.
  2. The format of the central stock register is enclosed.


  1. This register shall be updated on the receipts column as and when fresh stocks arrive. It is important that the person responsible for the stocks initials the quantity in the stock book.
  2. All requisitions must be numbered and in duplicate. One copy has to be maintained at the central store and the duplicate given to the accounts.
  3. All issues shall  be  recorded  immediately  in  the  stock  register  and  this must be update on a daily basis.
  4. The stock  registers  should  be  maintained  on  a  FIFO(first  in  first  out basis).”

13. Financial Planning & Budgeting

13.1 Budgets & Approvals

It  is  necessary  that  for  every  activity  taken  up  by VAXIGLOBAL to  be  interpreted  in financial  terms  and  get  the  approval  of  the  concerned  competent  authority.

Such  interpretation  takes  the  form  of  budgets  detailing  each  and  every components of the activity so that a clear evaluation of the total activity and the  components  thereof  can  be  made  by  before  approval. Such budgets normally become necessary, for the following activities:

  1. Meetings & Conferences
  2. Special events
  3. Remuneration of Staff & Consultants
  4. Capacity Building & other Training Programs
  5. Office Running Expenses
  6. Promotional events
  7. Travel

However, most of the times the expenses incurred on these activities are part of our programs budget and specific grants are allocated for such expenses, and would require only a simple sanction. It is therefore necessary that the budget for such activities is prepared at the time of preparation of the plan itself.


The process to be followed is:

  1. Budget for each activity to be prepared giving break up of sub-activities and related costs.
  2. The budget has to be verified and certified by the finance/accounts manager to ensure that the costs are  realistic  as  compared  to  the  activities,  and  the  budget captures all the required costs for such activities only.
  3. The necessary approval of the budget for incorporation into the Plan.

Wherever  there  are  procurement  of  supplies  and  services  for  such  activities, the formalities with regard to multiple quotations, evaluations, etc. have to be followed.”

13.2 Budget Management

  1. A Budget is an estimate of the amount of money to be received and to be spent for a specified purpose in a given time.
  2. Budgets set a framework for reporting and analysis.
  3. Budgeting never  stands  completely  alone,  but  rather  flows  out  of  the managerial process of setting objectives and strategies and of building plans. It is especially and intimately related to financial planning.
  4. While accounting, separate sub-codes to be created for every activity under the main grant code, so that the utilization of the budget can be monitored activity-wise.

13.3 While Planning the Financials

  1. The whole programs team and finance team needs to be involved in budgeting process.
  2. Objectives of   the program along   with   activity   plans   must   be completed before starting the budgeting process.
  3. Changes in  strategies  for  the  forthcoming  year  based  on  the  past experience have to be unanimously decided by the team and the budget should be accordingly formulated.
  4. List out  the  resources  required  to  achieve  these  activities  and  cost them.
  5. All line items in the budget must flow from planned activities.


  1. Budget should be as detailed as possible with justifications and break up of costs matched against each activity.
  2. When budgeting for subsequent years/phase, cost increases due to inflation, exchange rates etc. would need to be kept in mind.
  3. All expenses have to be reviewed against the budget on a monthly basis.
  4. The project management  shall  verify  the  quarterly  reports  against  the budget, analyse causes for variance and take appropriate action.”

14. Reports

14.1 Monthly Accounts

The  financial  reports  and  schedules  as  prescribed  below  should  reach  the relevant persons before the 10th  of the following month as per the following dates:

The following reports on financial information will be produced by Accounts for internal and external use.



14.2 Monthly Expenditure and Variance Report

A Monthly Expenditures and Variance Report that reflects the expenditures incurred during the month for each line item and the total expenditure incurred for the month. It also gives the cumulative expenditures incurred to date and the available balance on the budget.  

Where there is a budget variance, particularly over spending on a budget line item, or introduction of a new set of activities in a budget column, the report should state if the variance is:

  1. Permitted under the terms of this grant;
  2. Unanticipated and requires approval”

 “14.3 Internal Control Measures

In addition to setting up adequate internal control measures, Management shall from time to time perform these checks to safeguard assets:

14.4 Management Information Report

The Finance/Accounts Officer prepares and consolidates the Reports and submit it to the Relevant  Persons  as  the  case  may  be,  with  a  copy  to  the  Finance  Manager before 10th  of every month.

This report is under 6 heads and is explained below:

Bank & Cash Balances:  This will reflect the utilization of funds received and also will furnish broad indication of how much has been spent on Grants and on office/admin expenses. The opening and closing balances should be in agreement with the Bank Book.

Analysis   of   Expenses   against  Budget: This   is   the   variance   report   on Management  of  Expenses  budget  and  reflects  whether  the  trend  of  expenses have  to  be  reviewed         in order  to  avoid  any  negative variation  and  take corrective action as necessary.  Every positive and negative variance has to be commented upon citing reasons for variance and corrective action proposed.

Grant  Utilization  Status:    It  is  necessary  to  review  on  a  monthly  basis  the utilization status of grant budget in order to ensure that the actual spending is as per the  planned budget and the phasing  of utilization .

Statutory  Compliance: The  implications  of  non- compliance of statutory provisions are very serious and it is therefore necessary that the management is kept informed about   the  compliance or otherwise of these provisions, this report becomes useful  for managers to monitor adherence to the requirements and due dates.

Fixed/Consumable Assets:  The Assets Register needs to be maintained as per the format authorization of the same need to be done on a regular basis.”

 “15. Fixed Assets Register  

It is the responsibility of the Finance/Accounts manager to maintain a complete and accurate fixed asset register. The fixed assets register will be maintained on an excel spreadsheet or a book and should have the following details:

  1. Identification or serial number
  2. Acquisition date
  3. Description of asset
  4. Location
  5. Class of asset
  6. Cost of acquisition
  7. Accumulated depreciation
  8. Net book value

The Finance/Accounts manager should ensure that all the assets are tagged with identification codes. All the classes should commence with the prefixes itemized below followed by a unique 3 or 4 numerical numbers for each specific item. E.g. an office desk at the reception will fall under the furniture and fitting class and will be identified by the code ACID/FA/OD/) 001 where:-


Centre FA – Fixed Asset

FF – Furniture & Fittings

OD – Office Desk


001 – Unique for Desk at the reception

15. 1 Processing Depreciation

  1. At the end of every month, the Accountant should prepare a depreciation schedule for each of the items using depreciation rates described in sub-section
  2. The Finance manager should review the schedules and sign them as evidence of the review. On the strength of the duly reviewed depreciation general journal, the accountant shall update the fixed assets register

15. 2 Accounting for Fixed Assets Addition

  1. Recording and payment for the acquisition of fixed assets shall be as per payment procedures.
  2. On delivery, the asset shall be classified, tagged and recorded in the fixed assets inventory register.

15.3 Accounting for Disposal of Assets

  1. The Board must approve disposal of fixed assets. No assets should be disposed of without the written authorization of the board.
  2. On the strength written authorization by the board, the management should invite public bids for the purchase of the asset.
  3. On receipt of minimum of three bids, the board should sit and adjudicate over the bids. On conclusion of the sale to the winning bidder and on the strength of the board disposal authorization and adjudicated bids, the finance manager and accountant shall prepare a journal to record the disposal and the bidder’s indebtedness. The journal will include an adjustment for the revaluation if any.
  4. If the disposal is a cash sale, the Accountant should issue a general receipt.
  5. At the board discretion, an auction may be conducted. Cash proceeds from the auction should be treated as above.”