PART ONE - FINANCIAL/ACCOUNTING POLICIES & PROCEDURES

Objectives

The Accounting System seeks to:

Provide machinery for recording financial transactions in such a manner as to comply with
legal and statutory requirements.

Provide suitable financial information to management on the day-to-day operations of the PDO

Assist in financial management planning both for short-term and long-term

Establish internal control measures to safeguard assets of the PDO and ensure the
completeness, accuracy and reliability of records.

Basic Elements

The Accounting System consists of 4 primary elements as follow:

Transaction data of source documents such as written requests, invoices, travelling and
transport claims, etc.

Processing of input data into a form suitable for storage and retrieval for computation, analysis
and summaries.

Storage device for holding data for long period, example ledgers, and pen drives, Fixed Asset
Register, etc.

Reports and listing of data held in storage.

1.General Policies

Peoples Development Organization(PDO) Accounts shall be audited at least once every year by a
reputable recognized Auditing Firm (to be appointed by a board resolution) and the report
shared with all stakeholders and other Audit requests by donors for specific funding shall be
separately arranged and agreed with the auditors.

Accounting Convention

The preparation of financial statements shall be done under the historical cost convention
Fixed Assets

All Fixed Assets purchased from donor funds shall be written off in the year of purchase. A fixed
Asset register shall be maintained for all Assets purchased by the Organization and updated as
and when necessary.

Foreign Currencies

All transactions in foreign currencies shall be recorded in Leones at the rate ruling at the
transaction date.

Income

Grants/Funding received from overseas and local donors shall be accounted for on receipt basis.

Expenses

All expenses shall be accounted for on accrual basis.

Taxation

PDO as a nonprofit making humanitarian organization that is registered with Ministry of

Finance and Economic planning and SLANGO is exempt from income tax.

2.CASH BOOK, CASH/BANK RECONCILIATIONS

2.1. Computerized Cash Books and Bank Books shall be maintained concurrently for the
organizations consolidated accounts using accounting software (currently being used by the
organization).The Cashbooks shall reflect the daily transactions from either cash or the Bank(s)
accounts.

Note: All items in the cashbook/Bank Book must be recorded chronologically and reference
made to the relevant supporting document(s) and/or payment or receipt voucher number(s).
The following details must be indicated on the Payment Voucher and recorded in the
Cashbook/Bank Book where applicable:

-Date of Voucher

-Payment Voucher number

-Cheque Number

-Payee's name of payment

-brief description of payment

-Amount in words and figures

-Relevant Account Codes

- Classification of payment by funding agency- Signature of recipient

2.2.The finance section shall close its services to staff and the public at 3.30pm on each working
day (i.e. Monday to Friday) and thereafter engage in the posting of vouchers and the processing
of all other accounting documentation necessary to put the days work in perfect order. The
Finance Officer shall ensure that:

-Two separate individuals in the Finance Team shall post daily computerized cashbooks/Bank
Book and agree balances before close of business.

-The Admin/Finance Assistants shall be responsible for the posting of the computerized
cashbook/Bank Book.

-The Finance Officer shall raise all payment and receipt vouchers to be posted in the cashbook.

-At the end of every days postings the balances of the two cashbooks must be compared and
agreed.
-At the end of each Month the following checks/reconciliation should be performed:

a)Cash Count - Physical Cash plus outstanding floats must always agree with cashbook balance.
The float policy is that all floats issued must be put to rest before or by the end of the month in
which it was issued (with a few exceptions). This therefore means that the physical cash balance
should always agree with the cashbook balance.

-Any of the following personnel The Director or his Nominee/Admin/Finance Manager - shall
conduct a cash count - exercise on the last working day of each month, at close of business or on
the 1st working day of the preceding month, before the commencement of business. A
surprise/Spot cash counts can be also conducted as and when necessary by the same Officials
above.

-The result of the cash count shall be entered on the special cash count form and signed by the
officials concerned and shared with members of management. A special cash count file shall be
created in which cash count results shall be filed.

-There shall be at least one snap check (check without notice) on cash balance within every
quarter.

b)Bank Reconciliation Monthly bank Reconciliations should be carried out by the Finance
Assistant for all accounts maintained by the organization. The Reconciliation Statements must be
reviewed by the Finance & Administration Manager. These documents must then be
approved/authorised by the Director/or his designee. The most recent Bank Statement attached
to the Reconciliation Form (see annex for Form)

c)Monthly Income & Expenditure /Quarterly Budget VS. Expenditure Reports the Finance &
Administration Manager shall produce The Organizations monthly expenditure reports by simply
sorting the computerized cashbook by accounts code and writing up a summary of income and
expenditure report. This should be forwarded to the Director with copies to the Sector Manager
(custodian of the particular funding) and the Programming Monitoring and Evaluation sector
manager. This should be done for each donor cashbook (when necessary) and the consolidated
cashbook.

A quarterly analysis of variances i. e. a tabular presentation of expenditure against budgeted

amounts and establishing their variances must be submitted and attempt should be made to
give reasonable explanation to any variance, which is significant for management attention and
information.

2.3.Scrutiny/Checking of Vouchers

Payments & Receipts) with the relevant supporting documents for each month must be sorted
chronologically according to the sequence in which each transaction occurred and is posted in
the cashbook. These MUST be submitted along with the outstanding float schedule and a
schedule of all income received for the month under review, to Finance & Administration
Manager for scrutiny and checking.

The checking process will be aimed at ensuring the following:

That each voucher posted into the cashbook is duly approved & authorized by Management, at
the appropriate level (PDOs management will establish define levels of expenditure
approval/authorization).

That the correct account code has been applied and hence the transaction charged to the
correct cost center.

That the voucher has adequate support documentation to substantiate the expenditure.

That all receipts attached to expenditure voucher (s) are stamped paid - and payment date
indicated - with the special paid stamp held by the Finance Officer.

That the amount recorded under the receipt column of the cashbooks agrees with the total
income received for the month in question.

3.ACCRUALS & PREPAYMENTS RECORD FILE

An accruals and prepayments record file should be established and maintained by the Finance
Officer.

-The Finance Officer should record all prepayments and accruals in the record file as follows:
Date, Description & Amount.

-The record book should be presented to the Finance & Administration Manager for verification
periodically.

At the end of the year when the annual accounts is prepared journal adjustments would be
made using the accruals & prepayment record file.

4.FIXED ASSETS REGISTER / INVENTORY LIST

4.1. PDO shall maintain a fixed assets register at all times. Items to be included in the fixed assets
register shall include the following: VEHICLES motor vehicles, motorbikes, bicycles etc.
EQUIPMENT radio communication equipment, computers, generators, photocopy machines,
electric water kettle, Fixtures such as Air conditioners and household items such as refrigerator,
etc and all other assets of similar nature that have a useful life of over one year.

4.2.Other assets such as: calculator, staple machine, paper punch, staple pin remover, Diskette
bank, filling tray, cutleries and other house hold utensils, not classified as fixed assets as a matter
of policy, shall be recorded on an inventory register which like the fixed assets register shall be
location specific.

4.3.The Finance Officer shall have the responsibility of ensuring that the fixed assets register is
updated periodically and that it reflects the reality in terms of assets owned by PDO (see sample
of fixed assets register).

4.4.The following procedures shall be considered when updating the fixed assets register:

Upon receipt of the support documentation for a newly acquired fixed asset, the Finance
Officer should immediately enter the relevant details in the register before posting the voucher
into the cashbook.

All fixed assets purchased by PDO must first be examined and certified by management before
entry to the store ledger and subsequent distribution to end user(s).

All Fixed Assets must be labelled/tagged/marked with a unique code

5.RETENTION PERIOD FOR FINANCIAL DATA

The retention period for all financial documents shall be not less than ten (10) years from the
official date of filing the document.
PART TWO - FINANCIAL/ACCOUNTING PROCEDURES

This document details the procedures to be followed for accounting for all income and
expenditure within PDO

Approval and Authority

For all petty cash and Cheque payments up to Le 5, 000, 000.00(Five Million Leone) Directors,
Managers and Accountants have the power to approve/authorize payments. Payments above Le
5,000,000.00 can only be approved/authorized by the Director except in circumstances where
he/she is absent then he/she can send via email instructing one of the program managers to
approve/Authorise on his/her behalf.

1.Documentation

All payments made must be supported by a fully approved Cheque Requisition Form and
Payment Voucher and substantiated by the following documents:

Suppliers invoice

Delivery note

Official receipt

Three Proforma Invoices for Purchases of Le 500,000 and above

Written request for quotations can either be done or the Logistics Officer can go and source
quotes
The first point of contact should be Suppliers in the Organizations Data Base

An Approved purchase Requisition for Purchases and Local Purchase Order

Salaries and Benefits Payments

All payment must be supported by a fully approved Payment Voucher and authorized Salary
Payroll detailing the individuals to be paid. Salaries and benefits payments shall be made
directly into Employees personal bank accounts.

Statutory deductions from Salaries

NASSIT Payment

PAYE

Petty Cash

All cash payments must be via and recorded in Petty Cashbook.

Authorized Cash Disbursement Request Form giving a rough breakdown of the type of items on
which the petty cash amount will be spent and an approved Payment Voucher must accompany
a request for reimbursement of the petty cash float.

The Petty Cash float at any one time should not exceed Le 1,000,000 (One million Leones only)
except where payment from the bank account is transferred into petty cash account and treated
as float.

Petty cash floats must be retired at all cost by or before the end of the month and they must be
adequately and satisfactorily accounted for before they are reimbursed.

Payments from petty cash must not exceed Le 300,000.00

Payments above Le 300,000.00 must be made via cheque.

All requests for Petty Cash must be made on the Inter-Office Memorandum Form and approved
in accordance with the established procedure. A Petty Cash Column will be maintained in the
consolidated cashbook.

Floats

All requests for floats must be made on the Cash Disbursement Request Form with details of
estimate attached. When approved, the float will then be completed, authorized and cash paid.

Out of Station Allowances (DSA)

All such allowances must be claimed on the Out of Station Allowances form, which shall include
cost of feeding and accommodation. The management shall publish the per diem rate from time
to time or include in the Employees Terms and Conditions of Employment.

Receipt of Income

All income received must be acknowledged by official PDO receipt.

2.PROCEDURE FOR PAYMENT

Objectives

To ensure that:

Expenditures made are for the benefit of the organization.

Payments are authorized and relate to approved expenditures

 The transactions are completely and accurately recorded.

2.1Disbursement Request

Expenditure for payment by cheque must be requested on a cash disbursement Request form
and must be substantiated by one of the following:

Three pro-forma invoices for goods and services for expenditure exceeding Le 500,000 (Five
Hundred Thousand Leones only).

Fuel Payment Request

Utility bills (i.e. telephones, electricity, water)

Invoice and delivery note/Debit note for goods and Services already provided etc.

Note

Before any expenditure can be approved, it must be first of all ascertained that the expenditure
is covered in the budget and that funds are available to meet this expenditure. It is the
responsibility of the Finance & Administration Manager in consultation with the Finance Officer
to ensure that this is the case before approving any cash disbursement request.

2.2.Salaries & Benefits Voucher

The Payroll Voucher will be prepared by the Finance officer, checked by the Finance &
Administration Manager and approved by the Director and returned to the Finance Officer so
that a Payment Voucher and cheque can be raised.

2.3.Out of Station Allowances

The Out of Station allowances Form will be prepared by the officer concerned, Approved by Line
Manager and authorized by the Finance & Administration Manager before being forwarded to
the Finance Officer for a Payment Voucher and cheque or Petty Cash Voucher to be raised and
payment effected.

2.4.Salary Advances

The Finance & Administration Manager will approve the Salary Advance application form before
it is forwarded to the Finance Officer for a Payment Voucher and cheque or Petty Cash Voucher
to be raised to effect payment.

2.5.Payment Voucher and Cheque

The Finance Officer will complete a payment voucher and raise a cheque or pay cash from the
petty cash account once any of the following correctly authorized documents are received:

Cash Disbursement Request Form

Salary Voucher/Payroll

Float Request Form

Out of Station Allowance Form

Salary Advance Application Form

The Payment Voucher and all supporting documents must be forwarded to the appropriate
authorities for signature and approval

Note: Payment to other organizations/institutions shall be by cheque except otherwise agreed

by the management to pay by cash in view of the amount or other circumstances.

2.6.Release Of Payment by Cheque

Once approved, the payment voucher, cheque and supporting documents will be returned to the
Finance Officer and the cheque released and signed for. The documents must be stamped Paid
and the cheque number and date indicated.

2.7.Receipt of Payment by Cheque/Cash

All payments for goods must be substantiated on an official receipt and/or Delivery Note/Debit
Note.

2.8.Release of Payment by Cash

Once approved, the cash voucher and supporting documents will be returned to the Finance
Officer and the cash released and signed for. The documents must be stamped Paid & the date
of payment indicated.

3.CASH MONITORING AND RECONCILIATION

3.1.Monitoring of Staff Salary Advances

Each month before completing the payroll voucher, the Finance Officer will ensure that all
outstanding Salary advance payments are correctly deducted from the monthly salaries.

3.2.Monitoring of Outstanding Floats

At the end of each month, the Finance & Administration Manager in close consultation with the
Finance Officer will be responsible for verifying that all Float Request Forms still outstanding are
legitimate. Any Floats which have not been accounted for within five working days of the
scheduled date of completion of the activity will be investigated and appropriate action taken to
retire the Float.

3.3.Reconciliation of Bank Accounts

At the end of each month the cashbook will be totaled, and the receipts and payments
reconciled to the bank accounts. Outstanding balances for each donor agency will be calculated
and recorded in the Cashbook.

3.4.Reconciliation of Petty Cash

At the end of the month, the amount of petty cash outstanding will be reconciled to the petty
column of the consolidated cashbook.

3.5.Reconciliation of Stock Line

The items in the Store will be reconciled to the balances as recorded in the Store ledger at the
end of each month by a physical stock count exercise by a Finance & Administration Manager or
the Director/or his designee.

4.MONTHLY REPORTING OF EXPENDITURE

4.1.Expenditure Report

A monthly expenditure report will be produced, analyzing all expenditure by account code. A
breakdown allocating the items of this expenditure to the various funding agencies will also be
provided. This breakdown by funding agency should be reconciled to that in the Cashbook (see
Part One, Section 2.2c).

4.2.Receipt of Income

Of equal importance is the correct recording of income. All income received of more than
Le250,000.00 should be paid into the bank account immediately, and a receipt voucher
completed. Income received of up to but not exceeding Le250, 000.00 should be credited into
the Petty cash account.

PART THREE PROCUREMENT GUIDELINES

3.0 Procurement Policy

The procurement process is designed to meet basic regulations requirement required for Public
Procurements. The nature and quantum of Procurement undertaken by PDO is not significant
enough to justify the need for a Procurement Unit. A Staff of the Finance Division has therefore
been identified and assigned to handle all issues pertaining to our day to day Procurements.

All procurements should be approved by the Director (for transactions over Le10m) and
Director of Finance and Administration (for transactions under Le10m).

The procurement system must ensure value for money in the procurementthe procurement of
goods, services and works.

The procurement system aims at procuring goods, services and works of the right quality, at
the right price, at the right time and the right place through an open competitive tendering
process depending on the value.

The use of fund in the PDOs activities must be conducted in a transparent and open manner as
a means to control and monitor allmonitor all procurement cases.
3.1 Procurement of Goods/Items

3.1.1 Definition of Good/Items

Goods means objects of every kind and description including products and equipment and
object in solid, liquid or gaseous form, and electricity, as well as services incidental to the supply
of the goods if the value of those incidental services does not exceed that of the goods
themselves.

3.2 Procurement Methods

Methods that can be used in the procurement of goods include:

Competitive Tendering

Single Sourcing

Request for Quotations (RFQs)

3.2.1 Competitive Tendering

National competitive tendering is appropriate for procurement valued over Le 60,000,000.

3.2.2 Single Sourcing

Single source procurement from a supplier without competition (direct procurement) is subject
to a specific approval being granted by the Director of Finance and Administration

Single source procurement is appropriate when:

The purchase is for urgently needed products, provided this is restricted to the minimum
quantity to meet the urgent need until a purchase by other methods can be fulfilled;

The requirement can only be supplied by one source for physical, technical or policy reasons.

3.2.3 Request for Quotations

Suppliers (at least three) are required to present price quotations which are compared. This
ensures competitive prices are chosen.

3.3 Procurement Process (Goods valued below Le1 million)

Obtain formal request for items from the needy department.

Check for availability of product.

If in stock, supply the needy department.

If not in stock, the under listed steps should be undertaken;

Requestor writes memo to the Director of Finance & Administration (DFA) through
supervisor/head of Department.

DFA approves memo and forwards it to the Accountant

The Accountant obtains quotations from at least three suppliers

Selection of contractor/service provider is done on the basis of quality and price

Upon selection of the contractor, the contract to supply the goods or perform the service is
awarded.

3.4 Procurement Process (Good valued between Le1 Million and Le10 Million)

Obtain formal request for items from the needy department.

Check for the availability of products.

If in stock, supply to the needy department.

If not in stock, the under listed steps should be undertaken:

Memo is written to the DFA

DAG minutes memo to the Accountant who forwards request to the staff assigned on
procurement matters

The Procurement staff formally informs suppliers about the quantity, unit size and specification
of product required and sends out Requests for Quotation (RFQ), which are signed by the DFA

The suppliers complete the RFQs which are returned to the PDO for evaluation by a committee
comprising the requestor, the Accountant and the procurement staff. In cases where the request
is for a specialized item, the technical staff is included in the committee.

Evaluation committee constituted is chaired by the requestor/needy department or technical

personnel

Once a supplier/service provide is selected, the Local Purchase Order ((LPO) is prepared and
signed by the DFA

Payment is made on the supplier/service providers invoice afterinvoice after submission of

goods, evidenced by a delivery note or receipt of certificate of completion

3.5 Procurement Process (Good Valued above Le 10 Million but below Le60 Million)

Obtain formal request for items from the needy department/unit.

Check for availability of funds/source of funding for the product(s)

Obtain approval from AG through the DFA

Clearly specify quantity, unit size and specification of products.

Follow all other steps as detailed above for procurements between Le5m and Le10m.

3.6Procurement Process (Good Valued above Le 60 Million)

Obtain formal request for items from the needy department/unit.

Check for availability of funds/source of funding for the product(s)

A meeting of the Management Committee is convened and minutes of the approval are
recorded and file

The Management Committee should comprise of the Chairperson, who should be the Director,
the DFA, who will serve as the Secretary and at least three other members drawn from various
Divisions within PDO.

Bidding documents are prepared.

Tender identification number is determined

Clearly specify quantity, unit size and specification of products.

 Advertise in at least one national media (print and electronic where applicable).

Allow for at least 10 days for submission of sealed bids. Envelopes containing bids must be
addressed to the Organizations head office or provisional units clearly stating the tender
number and address of purchase. Envelop must be marked not to be opened until date and
time of bid opening.

State clear specific time, date and place for bid submission and opening.

Submission must be opened publicly by a properly constituted panel in the presence of Bidders
and/or their representatives who choose to attend.

Constitute Evaluation Panel to evaluate submission and make recommendations for award.

Submit evaluation report to Management Committee for approval.

Award contract on receipt of approval from Management Committee

The Contractor supplies/provides service according to the terms and conditions in the Bidding
Document

Payment is made according to the terms prescribed in the Bidding Document

3.7 Delivery of Items

The Custodian of the goods or the User Department (and a Technical Person where required)
check the quantity and specifications of goods supplied against the items described in the LPO.

Copies of GRN and Delivery Note are attached to Invoice and forwarded to the Accounts
Department.

3.8 Procurement of Service

3.8.1 Policy

Generally, Services above Le 1 Million should be sourced from three suppliers. The Exceptions
are discussed in the ensuing sections

3.8.2Maintenance of Vehicles

PDO has a diverse fleet of vehicles including Toyota, Land cruisers, Great Wall and several others,
As such it is difficult to obtain three or more quotation from Service Providers as some of these
providers are specialized, for instance, Reelin deals with Toyota vehicles, Dads Car Center with
Great Wall etc. Others like Motor Care and Cerra undertake a wider range but as good practice
allows, the PDO tries to make decisions based on sound judgment.

The PDO has identified a pool of service providers for the maintenance of vehicles, who are
contacted when vehicles are in need of routine servicing or general maintenance.

The Providers are as listed below:

Motor Care

Cerra Automotive

Reelin (Toyota)

Michael Stores (Motor Bikes)

Dads Car Center (Great Wall)

3.8.3Routine Maintenance of buildings, Air Conditioners, Gensets and general

equipments/machineries

PDO has identified a pool of service providers for the maintenance/provision of these services.

These individuals or Businesses are contacted by the Office Manager every time a need arises
in these regard.

3.8.2 General Procurement Process

User Department requests for service

Quotations are sought from reputable service providers

Office Manager and Facilities Officer select suppliers, under the Supervision of the DFA, based
on quantity of service, competitiveness of prices and delivery time.

Fills LPO and adds a Work Order to the supplier.

Supplier fills in the field to indicate the completeness of service.

User also indicates whether the service has been provided

Facilities/Transport Officer prepares a Certificate of Completion

The invoice plus the Work Order and Certificate of Completion is forwarded to the Accounts
Department for processing of payment after approval by the DAF
1. INTRODUCTION

-Procurement procedures should ensure that goods & services purchased by PDO are necessary,
at market competitive rates and of required quality and quantity. The Procurement process
should also be executed speedily in a timely fashion.

2. REQUEST FOR PROCUREMENT

-Project Heads that require purchases to be made should firstly agree quantity and type of
purchase with the Programme Manager.

-Once an agreement is reached, then the Finance & Administration Manager should be
approached with details of goods to be purchased, including quantity and quality specifications.

1.CATEGORY OF ITEMS PROCURED

Two different types of item can be procured:

Frequently Purchased Items

-Items frequently purchased by PDO (e.g. stationery, cleaning materials, Fuel & Lubricants, Office
supplies, etc.)

One-Off Items

-Items that are purchased infrequently (e.g. furniture, equipment, agric inputs/supplies, etc.)

2.PROCUREMENT OF FREQUENTLY PURCHASED ITEMS

The Logistics Officer should maintain a book of current prices for frequently purchased items.
Procurement Book

-The Procurement Book should list current market rates from various suppliers for frequently
purchased items.

-The Finance & Administration Manager should ensure that the prices are updated on a
monthlya monthly basis, ensuring that quality is adequate and bargaining prices down.

3.PROCUREMENT OF ONE-OFF ITEMS

-The Logistics Officer should shop around and get quotes for items at as many sources as
possible (minimum 3).

-Once initial quotes are received, the Finance & Administration Manager should revisit the
suppliers again bargaining the price down, until the most competitive price is gained.

- The Finance & Administration Manager should ensure that the quality of goods is of the
standard required.

-The prices and changes in price arriving at the final rate should be recorded on the
Procurement Sheet.

Procurement Sheet

-The Procurement Sheet is used to analyse large one off purchase (greater than Le 500,000
but up to Le1,000,000 3 pro-forma invoices; greater than Le1,000,000).

-Each Procurement analysis should be recorded on a separate sheet, showing each round of
bargaining and different prices.

-All pro- forma invoices and other documents should be attached to the back of the analysis
sheet.

-Once Procurement analysis is complete, the Procurement Sheet should be used to prepare the
cash disbursement request form.

-A photocopy of the Procurement Sheet should be kept by the Finance & Administration
Manager, for his own records.
Procurement of all items valued at or greater than Fifty million Leones only (Le50,000,000 Only)
should be done via Public or Selective Tender (Competitive Bidding).

Pre qualification:

Define criteria should be established by the management to qualify potential

suppliers/contractors to participate in the tendering process such as evidence of similar work
done within an agreed period, certificate of service from previous employer (s), institutional
capacity, etc.

The award process must be transparent and open and all participants must be encouraged to
participate and witness the bid opening ceremony.
PART FOUR - STORES MANAGEMENT PROCEDURES

1.INTRODUCTION

-This document details the stores control procedures to be followed when receiving, issuing and
recording stock items.

-GENERAL PURPOSE OF THE STORES

-The stores reflect all incoming and outgoing quantities of stocks to Department, which require
storage or transfer onto planned activities.

-In general, any items entering the stores should be recorded and any items leaving the stores
should be recorded.

2.CATEGORISATION OF STOCKS

-Stocks should be categorised into 2 main types:

Frequently Used Items

-Large stocks of programme inputs, donor food and other similar items should attract a separate
category (e.g. food, non food items, school materials etc.).

-Each category should be subdivided into separate items (e.g. bulgur, buckets, rulers, plastic
sheeting etc.).

-New categories and items should be set up, as and when new stocks lines are entered into the
store.

One-Off Items

-One-Off items placed in the store for security or other reasons should be identified under the
Transit category (e.g. capital items placed in store for short term, consumables placed in store
for short term storage).

3.RECEIPT OF GOODS

-When goods are received into the store:

-The Stores Officer or Stores Assistant should check the goods.

-A delivery note or similar document from the supplier should be retained.

-The Stores Officer must complete the stores receipt voucher (SRV).

-The SRV should be completed and distributed in the following manner:

-1st copy to the suppliers / delivery agent.

-2nd copy to be removed, attached to the delivery note received from the supplier and stored in
separate SRV file held in the store or storekeepers office.

-3rd copy to be left in SRV book. All completed SRV books must be returned to the finance
section for safekeeping.

4.ISSUE OF GOODS

-When goods are issued from the store:

-The issues must be authorised by Director, Finance and Administration, relevant sector Manager
or other person given authority to issue.

-The Stores Officer must complete a stores issue voucher (SIV).

-The SIV should be completed in the following manner:

-The Director or other mandated person should sign the store requisition Form instructing
issue of goods from the store.

-The recipient should sign the SIV on the Final Recipient line.

-If a Driver is distributing the goods, then they should

Sign on the Driver Receive line. The Driver should then take the 1st and 2nd copies, leaving the
1st with the recipient and bringing the 2nd copy, signed by the recipient, back to the Stores
Officer.

-The SIV should be distributed in the following manner:

-1st copy to the final recipient

-2nd copy to be removed attached to the receipt note received from the recipient and authority
note (if applicable) and kept in a separate SIV books to be returned to the finance section for
safe keeping.

5.STORES LEDGER

-The stores ledger (SL) is the summary of all the SRVs and the SIVs, and allows stores officials and
management to track the movements and current balance on different stock lines.

The SL must be maintained for each stationery or office item that is on stock.
Upon receipt of item, the quantity received must be recorded under the quantity received
column of the SL, add the amount received to previous balance and establish the new total,
which will be the new stock line balance and a store receipt voucher issued to the Deliverer.

Similarly, when goods are issued from the stock, the quantity must be recorded under the
quantity issued column, subtract the quantity issued from the previous balance and establish
the new total, which will be the new stock line balance and a store issue voucher issued to the
Recipient.

Other details on the form must include:

1.Date of receipt/issue of goods,

2.Description and signature of deliverer or recipient of goods.

Frequently Used Items

-Each stock category (e.g. food, non food items, school materials etc.) should be divided in the
stores ledger.

-Each stock line (e.g. bulgur, buckets, rulers etc.) should have a separate ledger card, which
records all movements of that item by reference to an SRV or SIV.

One-Off Items

-One-off items (e.g. capital items placed in store for short consumables paced in store for short
term storage) should be entered onto the Transit ledger card.

-The stores ledger should be updated at the end of every day, enabling the Stores Officer and
management to have immediate access to stock balances.

6.RECONCILIATION

-The stores ledger should be checked twice monthly by the finance section ensuring the
following:

-All SRVs and SIVs issued have been accurately recorded in the stores ledger.
-All SRVs and SIVs issued have adequate supporting documentation.

-All entries in the stores ledger relate to SRVs or SIVs.

-Additions and subtraction in the stores ledger is accurate.

-Closing balances on the stores ledger equal the actual stock level held in store (between 30 to
60% of stock lines chosen at random, should be physically checked against stores ledger
balance).

-The Stores Officer, on a monthly basis, should physically check the stores ledger balances
against actual stock levels and prepares monthly reports.

-Whenever either the finance or stores staff notes any discrepancies, then these should be
advised to the Finance and Administration Manager promptly.

7.WRITE-OFF OF STOCK ITEMS

-Where stock has become obsolete, damaged or unusable, it should be disposed of in a manner
authorised by the Director or his Designee (e.g. sale, donation, destroy etc.).

-The following procedure should be followed:

The stock to be written off should be inspected by the Director and one other member of the
management team.

A stock write-off form should be completed, authorised by the Director and Line Manager and
filed.

The stores ledger should be updated to reflect the write-off.

NOTES FOR THE COMPLETION OF FORMS

1.Inter-Office Memo (IOM)

All requests (both financial and otherwise) must be made on the IOM.

For financial request in particular, the details must include:

-Purpose

-Amount required with a detail budget enclosed

-Location of activity where necessary.

All requests must be addressed to the respective Line Managers for approval.

2.Payment Request Form (PRF)

After approval of request as specified on the IOM and cost of goods/services obtained, the DRF
must be completed indicating:

Payment to Supplier or Individual(s) for services rendered

The amount in words and figures.

The form will then be fully completed with the other details required and approved/authorized
by the appropriate personnel.

3.Payment Voucher Form (PV)

After the CDRF has been completed, the PV will now be prepared with all the details on the
CDRF including:

PV Number

Accounts code

Address of supplier or individual(s) for services rendered.

The PV must be approved/authorized by the appropriate personnel.

It must be noted that items 1, 2, & 3 will represent one set of supporting documents for
payment made.

4.Float Form (FF) 2 part Form

Where budgets are prepared for activities, which include provision of estimated cost of
goods/services, a float will be issued upon request and approval of such budgets.

Part one of the FF will be prepared when the float is issued

Part two completed when the float is retired i.e. fully accounted for.

If the float is adequately and satisfactorily accounted for all unspent cash must be returned
and PV & CDRF prepared for the expended amount only.

Similarly, all amount spent in excess of the float and approved/authorized by Line
Management shall be refunded and the PV & CDRF prepared accordingly this practice must be
discouraged except in exceptional cases.

5.Receipt Voucher (RV)

The RV must be prepared only upon receipt of money via petty cash or bank accounts.
Completion of the form is self-explanatory but must be prepared with a reference number (e.g.
RV. No. 001).

6.Out of Station Allowances (OSA)

It is recommended that payment of OSA be included in the float request.

Upon completion of the exercise, the OSA form must be prepared to account for the expenses
incurred.

The form, which is also self-explanatory, must include:

1.Staff name & designation,

2.Purpose of visit outside duty station

3.Number of nights spent and rate per night

All OSA must be approved or authorized by Line Management.

7.Staff Salaries Advance Form (SSAF)

The SSAF must only be prepared upon written request from staff and approved or authorized
by line management with a clear understanding that the entire advance will be deducted from
the staff salary of the same month.

Details for the request of salary advance must include:

-Name of staff

-Designation

-Amount required.

8. Store Ledger (SL)

The SL must be maintained for each stationery or office item that is on stock.

Upon receipt of item, the quantity received must be recorded under the quantity received
column of the SL, add the amount received to previous balance and establish the new total,
which will be the new stock line balance and a store receipt voucher issued to the Deliverer.

Similarly, when goods are issued from the stock, the quantity must be recorded under the
quantity issued column, subtract the quantity issued from the previous balance and establish
the new total, which will be the new stock line balance and a store issue voucher issued to the
Recipient.

Other details on the form must include:

1.Date of receipt/issue of goods,

2.Description and signature of deliverer or recipient of goods.