Quick Reference Guides to Financial Management of the Counties of South Sudan

8/13/2019 Quick Reference Guides to Financial Management of the Counties of South Sudan

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Government of the Republic of South

Sudan

Public Financial Management

Manual for Local Governments

Quick Reference Guides

May 2013


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Contents

1. Responsibilities for Financial Management in Local Governments2. Responsibilities of the Chief Administrator

3. Basic Financial Forms Receipt and Payment of Cash

4. Preparing a Budget

5. Sources of Revenue

6. Receipt of Revenue

7. Budgetary Control

8. Making and Recording Payments

9. Preparing the Payroll

10.Imprest and Advances

11.Selecting a Contractor

12.Management of Fixed Assets and Stores

13.Internal Audit

14.Cash and Bank Reconciliation

15.Preparation of Financial Reports

16.Preparing a Basic/ Primary School Budget

17.Preparing a Budget for a Primary Health Centre

18.Primary School Financial Management


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19. 1. Responsibilities for FinancialManagement in Local Governments

Officer Roles and responsibilities of key staff in PFM

Chief

Administrator

a. Chief finance officer of the local government [LGA 2009 Sections 61.1(c), 63.1(c),64.1(c)].

b. Supervise administration and management of the local government finances,procurement and maintenance of movable and immovable assets [LGA 2009 Sections61.2(e), 63.2(e), 64.2(e)]

c. Safe custody of local government records and funds [LGA 2009 Sections 61.2(k),63.2(k), 64.2 (k)]

d. Implementation and execution of the local government plan [LGA 2009 Sections72(1), 84(1)

e. Periodically render progress reports to the executive council for purposes ofaccountability [LGA 2009 Sections 72(2), 84(2),

f. Principal signatory on all cheques issued by the local government

Head of

Accounts

a. Organize the finance/accounting activities to ensure internal checkb. Vet all payment requisitions to ensure regularity and budget coverage.c. Co-signatory on all cheques issued by the local governmentd. Regular checks that all financial records are correctly written and filed.e. Reviewing and verifying the monthly bank reconciliation statement(s)f. Reviewing monthly and annual financial statements before submission to ChiefAdministrator, Executive Committee and Legislative Council

g. Induct any new accounts staff hired or posted to station in all financial procedures.h. Mentor and train existing employees and where problems persist, request ChiefAdministrator to mediate.i. Assisting external auditors during the annual audit

Planning

Officer

(Section 71

LGA 2009)

a. Identify, analyse and prioritise the needs of the Council

b. Prepare the Council Plan and Annual Budget for approval by the ExecutiveCommittee and then the Legislative Council

c. Monitor and supervise the implementation of the Council Plan and Budget.d. Coordinate and monitor the activities of all development partners in the

implementation of the Council projects.

Controller/

Inspector of

Accounts

a. Examining and pre-auditing of cash and cheque payment orders for regularity,ensuring budgetary control and accurate recording of theBudgetary Control Book

b. Checking all revenue collection receipts (Form 15) are accounted forc. Keeping track of commitments through theBudgetary Control Bookd. Collecting cheque books from the banke. Safe custody of the chequebookf. Preparing the monthly bank reconciliation statement

g. Checking the Treasury Chest Bookis maintained properlyh. Preparation of monthly, quarterly and annual financial statements

Accountant/

Book Keeper

a. Preparation of cash and cheque payment ordersb. Preparation of the payrollc. Writing out chequesd. Posting theAccountants Register of ReceiptsandRegister of Paymentse. Keeping the local rates (debtors/revenue) register up to datef. Keeping the creditors register up to date

Cashier a. Receiving cash/cheques from rate collectors and other payersb. Paying out cash against authorised payment ordersc. Issuing cheques to payees and maintaining the cheques outward registerd. Maintaining the cheques inwards register

e. Posting the Treasury Chest Bookf. Preparing a daily cash collection and payment summary reportg. Banking cash/cheques as required


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2. Responsibilities of the Chief Administrator

The Chief Administrator (Executive Director for a county) is the Accounting Officer for a local

government. They are responsible for financial administration and the proper operation of all

internal financial controls. They can be held to account by the Ministry of Finance of the State

and also by the Public Accounts Committee of Parliament. They may be disciplined and may

have to repay any funds found to be missing or misused.

Public Financial Management Manual (page 6/7 and 74).

Legal Responsibilities

The legal responsibilities of the Chief Administrator include:

a. Being Chief Finance Officer of the local government [Local Government Act, 2009Sections 61.1(c), 63.1(c), 64.1(c)].

b. Supervising the administration and management of local government finances,procurement and maintenance of movable and immovable assets [LocalGovernment Act, 2009 Sections 61.2(e), 63.2(e), 64.2(e)]

c. Safe custody of local government records and funds [Local Government Act, 2009,Sections 61.2(k), 63.2(k), 64.2 (k)]

d. Implementation and execution of the local government plan [Local Government Act,2009, Sections 72(1), 84(1)

e. Periodically render progress reports to the Executive Council for purposes ofaccountability [Local Government Act, 2009, Sections 72(2), 84(2),

f. Principal signatory on all cheques issued by the local government.g. Being personally accountable for the regularity and propriety of the expenditure of

money [Public Financial Management and Accountability Act, 2011, Sections 65and 51]

h. Delegating authority legally assigned to him/her in writing to another officer. Anydelegation shall not affect their personal accountability (Sec 51 of the PublicFinancial Management and Accountability Act, 2011 [Public Financial Managementand Accountability Act, 2011, Section 51].

i. Ensuring that appropriate action is taken over any irregularities or any unauthorisedexpenditure and this is reported to the Ministry of Finance and the Auditor General[Public Financial Management and Accountability Act, 2011, Sections 65 and 66].

The Chief Administrator should be supported by the following units:! Accounts/Finance Unit

! Procurement/Stores Unit

! Planning Unit

! Internal Audit Unit

(Chapter III of the Public Financial Management and Accountability Act, 2011).

Monitoring by the Chief Administrator

KeyAreasfor monitoring by the Chief Administrator include:" Compliance with the budget checking that all orders, contracts and payments

are in line with the appropriate budget line as recorded in the Budget Control Book.Cash flow is planned and monitored to ensure that sufficient cash is always availableto make payments as required.


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" Financial records management all necessary official forms are being usedand are being promptly completed and checked. All financial instructions andnotifications are in writing. All financial records are kept safely and securely. Paymentorders kept for at least 5 years after audit. Audited accounting records and financialstatements kept for a minimum of 15 years."

Cash security minimum levels of cash are maintained securely by the Cashierand any surplus is promptly banked. Appropriate security safeguards are in placeduring transportation and paying out of cash and for safe keeping of cheques andreceipt books. Cash counts are undertaken by the Controller/Inspector of Accounts orinternal audit at least once a week to confirm cash held by Cashier." Security & maintenance of all assets and stores is adequately monitored and

addressed. All assets are adequately maintained and recorded. Assets and storesare independently checked to ensure they are held securely and adequatelymaintained at least once a year." Revenue and other receipts revenue receipts from all sources are maximised.

Official Receipts (FF#15) are issued for all receipts. All such forms are adequately

accounted for. There is appropriate security for all rate collectors." Revenue monitoring all sources of revenue should be monitored and trends

investigated. All grants are received promptly and properly acknowledged." Payments all payments are properly authorised, are in line with the approved

budget and are for goods and services required by the local government. The ChiefAdministrator should review the Budget Control Book before they authorise anypayments. This is particularly important for large development contracts. Also checkthat payments are made for goods or services that have been received in line with thecontracts." Procurement & Contracts all procurement is undertaken in line with the

regulations to ensure that quality goods and services are received at appropriate

prices. Awarding of contracts is reported publically and complaints are dealt withindependently. The Chief Administrator should review the Budget Control Bookbeforethey authorise orders or contracts. This is particularly important for large developmentcontracts." Bank reconciliations are properly completed for each bank account at least

once a month. The Head of Accounts should provided explanations for any anomalies." Staff Appointments and payroll monitoring of all staff assigned to the local

government and ensuring that changes to payroll from month to month are accurate." All official correspondence on financial matters is personally reviewed and

action is promptly taken as necessary." Reimbursable advances are staff adequately accounting for all advances

provided (travel imprests)." Staff training all financial staff receive appropriate training and are aware of

any legal or regulatory changes. Financial staff have access to copies of the PublicFinancial Management Manual for Local Governments, the Local Government Act,2009and the Public Financial Management and Accountability Act, 2011" Financial irregularities all suspected financial irregularities are investigated,

reported to the appropriate authorities and necessary disciplinary action is promptlyundertaken." Internal & external audit ensure that audit staff have access to all records,

forms, staff, assets etc that they may require. Check that all audit queries and reports

are promptly responded to. Necessary action is taken in response to all audit reports.


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3. Basic Financial Forms Receipt and

Payment of Cash

a) Receipt of Revenue:

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b) Cash Payments:

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4. Preparing a Budget

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5. Sources of Revenue

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6. Receipt of Revenue

Public Financial Management Manual for Local Governments(PFMMLG, pages 25 30).

Rate Collector

All payments to a local government should be on the basis of a suitable bill or notice; or based

on an advertised scale of charges or rates.

All rate collectors should be officially authorised and carry suitable identification. Rate

collectors should not help to produce rent rolls, tax assessments etc. They should also not

complete FF#39 Receivable Ordersnor post receipts to FF#19 - Treasury Chest Booknor to

the FF#65 -Accountants Register of Receipts.

Anyone who makes a payment to a local government should be provided with an official

receipt for the amount paid. This should be the official FF#15 - Receipt of Income (Appendix

3.4, page 105, PFMMLG).

The rate collector should check the money/cheques received and complete the FF#15 -

Receipt of Incomeand give the original to the person providing the payment. The duplicate

should be kept in the book.

All cheques received are to be written in the name of the local government and crossed. The

rate collector should check that this is done.

The FF#15 - Receipt of Incomebook should be treated like cash and kept secure. The FF#15

- Receipt of Incomebooks are issued by the storekeeper with signed authority from the Chief

Administrator.

Each day the rate collector should complete FF#67 - Collectors Account(Appendix 3.5, page

106, PFMMLG) and pass all money & cheques collected to the cashier at the local

government or pay the money in to a bank.

Paying to cashier:

The original of FF#67 Collectors Account should be given to the cashier with the cash

collected. In return, the rate collector should receive the original of FF#39 Receivable Order

(Appendix 3.6, page 107, PFMMLG).

Paying to the bank:

Where a rate collector directly banks revenue in the bank account of the local government

he/she should fill in FF#50 - Deposit Slip(Appendix 3.7, page 108, PFMMLG) which should

then be stamped by the bank and a duplicate copy retained in the book (with the bank teller or

receipt from the bank). This copy together with original of FF67 Collectors Accountshould

be given to the cashier the next time the rate collector goes to the local government office.

Cashier

When the cashier themselves receives cash/cheques direct from the public he/she should

issue a FF#15 - Receipt of Incomeas does a rate collector.


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When the cashier receives receipts from a rate collector, a Controller/Inspector of Accounts

should check the total cash and cheques or deposit slips is as indicated on the FF#67 -

Collectors Account in the presence of the cashier and the rate collector. The duplicate and

original of form FF#67 should be stamped by the cashier and the duplicate given back to the

rate collector.

The cashier should then complete FF#39 Receivable Orderand the stamped original given

to the rate collector as a receipt for the money received. The duplicate of FF#39 remains in

the book while the relevant FF#67 is filed by date with the Controller/Inspector of Accounts.

The cashier should ensure that deposits are made at the bank every day that significant cash

or cheques are received. The cashier prepares a FF#50 the deposit slipto deposit cheques

or cash. Form 50 should be stamped by the bank.

The cashier should also record all cheques received on FF#22 the Register of Cheques

Received (Appendix 3.8, page 109 of manual).

The cashier completes FF#19 Treasury Chest Book(Appendix 3.10, page 111, PFMMLG)

with information from duplicate copies of FF#39s and, if any, FF#15s issued by the cashier.

Each day the cashier should check that the cash held is the same as the balance recorded in

FF#19 Treasury Chest Book.

Bookkeeper or Accountant

The bookkeeper/accountant completes FF#65 Accountants Register of Receipts(Appendix

3.11, page 113 of manual) with information from duplicate copies of FF#39s and duplicates of

any FF#15s issued by the cashier.

Check on Receipts

Each time a rate collector returns a completed receipt book to receive a new one the old book

should be checked and the revenue has been accurately accounted for.

The receipt book should be checked by internal audit if present (or by the Controller of

Accounts) to see that all the receipts have been used and all the duplicates are in place. For

each of the duplicates, the recorded amount received should be checked to:

the duplicate of FF#39 Receivable Order and the relevant FF#67 CollectorsAccountfiled with the Controller/Inspector of Accounts relevant entries in FF#19 Treasury Chest Book.

If any receipts cannot be accounted for or if the amounts are not consistent this should be

reported to the Head of Accounts and the Chief Administrator.

If present, the internal auditor can check that all receipt forms (FF#15) are accounted for. In

their absence, an Inspector/Controller of Accounts should undertake this task.


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7. Budgetary Control

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8. Making and Recording Payments

Introduction

All payments should be checked to ensure that the procurement was undertaken properly,

that there is sufficient balance in the relevant budget and that the local government hassufficient funds to make the payment. The payments must be formally authorised and

recorded in the Treasury Chest Book(FF#19) and theAccountants Register of Payment

(FF#76).

Public Financial Management Manual for Local Governments (PFMMLG) (pages 57 62).

Origination of Payment Request

Operational Department

A payment requisition form (PFMMLG, Figure 6.2. page 58) should be completed, certified bythe head of department and sent with the necessary backing documents to the Chief

Administrator for authorisation. In smaller local governments a letter from the head of

department to the Head of Accounts may be considered to be sufficient.

For payments in respect of goods, the following documents are necessary:

H7&3%$;'# $(&B () 4#Y7%5%'%(+ )(4 F((>5 H7&3%$;'# $(&B () 'C# 943#6 2,'3"#%U JO@R &;F# /0_1 H#3%:#4B ]('# )4(, 57&&3%#4 744-< J&3&/:&- M4%&-I.SSMTR 6&+>%U JO//R &;F# /8^1

N7&&3%#4c5 *+:(%$#O

For services and works contracts, the following documents are necessary:

copy of contract/agreement for the service (e.g. construction contract, rent agreement) Invoices/bills from service provider/contractor Inspection Report by the contract manager in the user department Certificate of performance/work completed approved by a technical expert recognized

by the local government.

The head of the department should check that the Local Purchase Order /Contract amount

has been entered into the Budgetary Control Book(PFMMLG, Appendix 5.2, page 164) and

that there are adequate funds in the relevant budget line. This should have been done

immediately the Local Purchase Orderis issued or the contract/agreement is signed.

Processing of Payment Request

Inspector/Controller of Accounts

When a payment request or suppliers invoice (together with supporting documents) is

received in Accounts, the Inspector/Controller of Accounts/Accountant should check that the

above documents have been provided, all relevant procurement regulations have been

followed and all necessary approvals have been provided.


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If this is the case, the Inspector/Controller of Accounts should check that the Budgetary

Control Bookhas been completed with the Local Purchase Order /Contract amount and that

there are adequate funds in the relevant budget line. If this is the case the appropriate one of

the following forms is then completed:

FF#40 Cash Payment Order(PFMMLG, Appendix 6.1, page 166) FF#17 Cheque/Bank Payment Order(PFMMLG, Appendix 6.2, page 167)

The balance available on this budget line according to the Budget Control Bookshould be

indicated on FF#40/FF#17. The Payment Order is then submitted to the Head of Accounts. If

internal audit is available they should undertake their pre-audit checks at this stage.

Head of Accounts

The Head of Accounts checks that all the relevant forms are attached and have been correctly

completed and authorised. If a cheque is required, this should be prepared by the Accountant/

Book Keeper.

The Head of Accounts checks that the cheque has been properly written, signs the Payment

Orderand cheque and submits this and the backing documentation to the Chief Administrator.

Chief Administrator

The Chief Administrator should check that all the relevant forms are attached and have been

correctly completed and authorised. Checks should be undertaken that the payment is for

approved local government business and that adequate funds are available in the budget for

this payment. The Payment Order and the Cheques should be signed and submitted to the

Cashier for cash payment or cheque dispatch.

Cashier

The Cashier should make arrangements for the payee to collect the cash/cheque and sign the

Payment Orderon receipt. The Cashier should then stamp the Payment Order Paid. The

Cashier should record the payments in the Treasury Chest Book, complete the Cheque

Dispatch Register(PFMMLG, Appendix 6.4, page 169) and submit the documentation to the

Accountant/Bookkeeper.

Accountant/Bookkeeper

TheAccountant/Bookkeeper posts the details of the payments to the following:

FF#76 Accountants Register of Payments(PFMMLG, Appendix 6.5, page 170) Budget Control Book record actual amounts paid per Payment Ordereither as

payment of commitments (in the case or LPO/Contracts) or as direct payments.

The Payment Ordersshould then be filed in date order in the office of the Head of Accounts.


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9. Preparing the Payroll

Introduction

The national Ministry of Labour has introduced an electronic payroll system called SSEPS

(South Sudan Electronic Payroll System) with access from each state. SSEPS automaticallygenerates pay sheets and payroll reports each month. Local governments should use SSEPS

II to generate pay sheets. If SSEPS II is not available in a local government, manual

procedures using the old Establishment Form 7 (for unclassified staff) or Finance Form 13

Salary Control Pay Sheet (for classified staff) (Public Financial Management Manual for Local

Governments (PFMMLG, Appendix 7.1, page 171) should be used to notify the State of any

necessary changes to payroll data.

Employee records

Each local government should maintain up to date records of all staff (in individual personal

files). Any changes to employee records can be made using SSEPS or by completing amanual Change Notification Form to notify the State.

Processing the pay sheet

All county staff - classified, unclassified, staff seconded or transferred from State or other

levels of government - should be included on the local government pay sheet. Salary payment

should be processed on a per-department basis. For each department a Salary Payment

Request Form should be completed (PFMMLG, Appendix 7.6, page 180). Supporting

documents, such as SSEPS II generated pay sheets (or Finance Form 13 and/or

Establishment Form 7 in the case of the manual payroll system) must be attached to the

Payment Request Form. If the pay sheet is completed at local government level, theAccountant/ Book Keeper, or another officer assigned by the Chief Administrator should

prepare the pay sheet as follows:

Enter the name of the Department (e.g. Education Department) Enter the funding source if the staff are being paid with donor funds Enter the month for which the salary is being paid From staff personal files, confirm the basic pay and allowances for each official and enter

it onto the payroll. Enter the total of each type of deduction for each staff e.g. Personal Income Tax and

Pension deductions, and any other deductions as applicable

Subtract total deductions from total salary and allowances and enter this as the Total NetPay to be paid per person and the total for the Department Complete the necessary approvals for the pay sheet and corresponding documents.

The following documents will be printed from SSEPS and submitted to the LOCAL

GOVERNMENT Accounts Unit for payment:

detailed pay sheet for each local government department summary pay sheet for each local government department (PFMMLG, Appendix 7.3) bank payment schedule for staff paid through their bank accounts (PFMMLG, Appendix

7.5).


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Payment of salaries

Where the local government has a bank account, funds should be transferred direct to the

bank account. Where the local government does not have a bank account, a Bank Payment

Order (Finance Form 17, PFMMLG, Appendix 6.2, page 167) should be prepared and

approved as described in PFMMLG, Chapter 7 to allow the cashier to withdraw money andhand it to the relevant department or unit to disburse the money.

Salaries are paid to staff:

By bank transfer directly to employees accounts, where possible In cash for employees without a bank account.

Armed escort should be provided in the case of salaries paid to staff in cash to guard against

theft during transportation from the bank or during the actual distribution.

Local government departments that have units in geographically separate areas, for example

primary schools under the County Education Department, will further transfer payroll cash,together with the Cash Payment Schedules, to the head of each unit for payment to their staff.

Every employee paid must sign (or thumb print) on three copies of the Cash Payment

Schedule to acknowledge receipt of money. At the end of the cash distribution exercise, the

cashier or senior officer responsible for disbursement must sign the pay sheet. One copy is

kept on file by the distributing officer, one copy is retained on file by the senior official of the

local government department and one copy is sent to the Chief Administrator.

All unclaimed salaries should be immediately returned to the Accounts Unit. A register of

unclaimed salaries is prepared by the Cashier. Any employee who turns up at a later date

signs this register as well as the pay sheet as evidence of receiving their salary.

For employees being paid for the final time in a Finance Form 8 - Last Pay Certificate

(PFMMLG, Appendix 7.7, page 181) should be prepared.

Remitting PIT and Pension remittances

Amounts deducted for Personal Income Tax, Pensions and other deductions are immediately

remitted to the appropriate fund/agency.

Accounting for salary payments

Salary payments are recorded in the Treasury Chest Bookand the Accountants Register of

Payments. The Treasury Chest Bookrecords the claim reference number from the Payment

Request Form.

a. In the Accountants Register of Payments the following codes are used: Basic salary (account code 21100 Allowances, payroll (account code 21101) Pension contribution (account code 21300) Incentives (account code 21200 Overtime account (account 21201)

b. Total paid out is recorded on the payments side in the Treasury Chest Book.


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10. Imprest and Advances

Definition of Imprest

An imprest is a sum of cash advanced to a public officer to make payments which are

inconvenient to make using the normal payment procedures. This may include astanding imprest (permanent), issued to a line department for small purchases. It alsoincludes travel advances made to officers going on official business (retired when theofficer returns).

Authority to Grant Imprest

The Chief Administrator authorises all imprests. All imprests are issued to a single named

officer by the Cashier and recorded in the Treasury Chest Book(and also as a commitment in

the Budget Control Book). They are repaid to the Cashier and recorded in the main Treasury

Chest Bookat the end of each year, if not retired before then.

Duties of Imprest Holder

An officer holding an imprest ensures that:

(a) The imprest issued to him/her is only used for the purposes for which is itissued

(b) Proper receipts are received for all payments made out of the imprest

(c) The imprest moneys and any receipts are kept safe at all times

(d) Travel imprests are retired as soon as the officer returns to the office.

Retirement of a Travel Imprest

An officer issued with a travel imprest retires the imprest by giving the Cashier:

(a) The balance of the cash remaining from the unused imprest

(b) Receipts for all appropriate expenses made, with any necessary explanationsand a summary of the payments.

The Cashier records any return of cash (as a receipt) from an imprest holder in the Treasury

Chest Book (PFMMLG, Appendix 3.10, page 111). The Cashier passes summary of

payments from the imprest holder,with the receipts attached, to the Accountant/Book Keeper.

The Accountant/Book Keeper posts the details of the payments to the following:

FF#76 Accountants Register of Payments (PFMMLG, Appendix 6.5, page 170).

Payments are coded according to the nature of the payments. Budget Control Book record actual expenses paid by the imprest holder against the

commitment from the original issue of the imprest.

Replenishing a Standing Imprest

When the cash in the imprest is nearly finished, an officer who has been issued with a

standing imprest should provide the Cashier with receipts for all appropriate payments made,

with any necessary explanations and a summary of the payments.

The cashier provides the imprest holder with money to the value of the expenses (so that the

imprest is replenished to the original sum).


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As with retiring a travel imprest, the Cashier passes summary of payments from the imprest

holder, with the receipts attached, to the Accountant/Book Keeper. The Accountant/Book

Keeper posts the details of the payments to the following:

FF#76 Accountants Register of Payments. Payments are coded according to thenature of the payments.

Budget Control Book record actual expenses paid by the imprest holder against thecommitment from the original issue of the imprest.

Use of Standing Imprest

Formal procurement procedures are needed for goods, consultancies or services costing

more than SSP150,000.

The Standing Imprest or petty cash should be used for purchases of SSP100 or less.

Standing Imprest would typically be for balance of SSP1,000.

A Local Purchase Order may be used for purchases of SSP5,000 or less.


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11. Selecting a Contractor

Legal framework

The Interim Public Procurement and Disposal Regulations, 2006 are currently in use. The

Public Procurement Act is being enacted. The Ministry of Finance & Economic Planning,through its Directorate of Procurement, has oversight of all procurement by government

institutions in South Sudan. This guide generally covers procurements estimated to cost more

than SSP150,000 (see pages 31 - 50 of the Public Financial Management Manual for Local

Governments PFMMLG).

Procurement administrative organs/structures

a. Chief Administratorshould investigate complaints about procurement, sign contracts /localpurchase orders and monitor contract implementation. They should have a ProcurementUnit, to support this work (PFMMLG, page 33).

b. Procurement Committee is composed of staff appointed by the Chief Administrator toapprove the annual procurement plan, approve the procurement method for eachprocurement event, approve members of evaluation panels (not members of theProcurement Committee), review evaluation panel recommendations, select the contractorfor each tender and approve any amendments to an awarded contract.

c. Procurement Unit should, keep lists of pre-qualified suppliers, compile the annualprocurement plan, coordinate procurement activities, be the secretariat to ProcurementCommittee, prepare and issue invitations to tender etc, recommend members of evaluationpanels, keep procurement records and prepare procurement reports.

d. Evaluation Panel should be set up by the Chief Administrator with advice from theProcurement Committee to evaluate assigned bid submissions and recommend the bestbidder to Procurement Committeefor each contract.

e. User department should provide technical input regarding the procurement plan,specifications, and evaluation etc to the Procurement Unit and Evaluation Panel.f. Contract manager/ administrator - is a selected person from the user department

responsible for the day to day supervision of contract implementation, certify contractorswork completed so that payments can be made, report on progress of the contract.

Procurement and disposal methods

A local government must use Open Competitive Tendering except as provided otherwise

(PFMMLG, page 35). The procurement methods should be based on the threshold amount as

provided in PFMMLG, Appendix 4.1, page 114 (generally more than SSP150,000).

A. Open tendering methodsinclude International Competitive Tendering (ICT) publish the invitation to tender nationally and

internationally National Competitive Tendering (NCT) publish the invitation to tender nationally Local Competitive Tendering for works (LCT) the invitation to tender is advertised locally

within the local government.B. Restricted tendering methodsused in specified circumstances, include: Selective Tendering - invite all available suppliers but not less than three. Request for quotations - invite firms from the list of pre-qualified suppliers/providers. Single source procurement or direct contracting invite only one provider.C. Method for Selection of Consultants use the request for proposals method and apply

the two-envelop tendering procedure - evaluate quality then consider cost.


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Conducting a procurement event

Procurement should include the following steps:

a) Planning prepare an annual procurement and disposal plan as part of the budgetingprocess and have it approved by the Procurement Committee (see appendix.. of the

PFMMLG).

b) Requisition User department to raise a Procurement Requisition (PFMMLG, Appendix 4.3:

Procurement Requisition Form) with clear specifications, estimated price and fundsavailable from the Budget Control Book.

Chief Administrator reviews the procurement requisition, confirms the contract is apriority for the local government, the availability of funds in the budget and, if satisfied,approves the requisition.

User department- forwards the approved requisition to the Procurement Unit. Procurement Unit reviews approved procurement requisition, selects an appropriate

procurement method (from the Procurement Plan) prepares a full set of

solicitation/bidding documents using the standard tender/solicitation documents fromAppendix 4.4 of the PFMMLG).

Procurement Committee - reviews and authorises the choice of procurement ordisposal method if different from that in the approved Procurement Plan, ratify notices,bidding documents etc.

c) Solicitation and selection Inviting tenderers/ bidders advertise based on the method of procurement used. Issuing bid documents must start issuing bid documents on date of advertising the

tender; and record the firms that have been issued with the documents (PFMMLG,page 38).

Receive requests for clarificationsif any, and record these (PFMMLG, page 38). Any

clarifications given must be given to all firms that took the bid documents. Receiving the bids/offers from potential suppliers- Bidders must be allowed sufficient

time to prepare and submit their bids as per guideline on page 38 of the PFMMLG.Bids should be in sealed envelopes properly addressed to the local government andmarked as Tender for supply/construction of . Bids should be recorded in a bidsreceived book (PFMMLG, page 38). All bids received should be placed in a lockedtender box.

Opening the bidsby at least two people (selected from the procurement unit and theuser department) do it immediately after the deadline for submission of bids/tendersin presence of bidders, record bids received and those attending.

Evaluation of bids an evaluation panel should appraise each biddersresponsiveness to the criteria outlined in the tender document; compare bid prices andrank the bidders, complete an Evaluation Report Form(Appendix 4.7 of the PFMMLG),recommend award to the Procurement Committee. For consultancy services apply thequality and cost based evaluation method

Award of contract Procurement Committeereviews the evaluation report, makes adecision on bid winner. Results published (details of evaluation ranking of all biddersand the prices they offered) on notice board for 10 days. The Chief Administratorissues a notice of award to the winning bidder. The Contract or Purchase Order issigned by the Chief Administrator.


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12. Management of Fixed Assets and Stores

Acquisition of fixed assetsFixed assets mean things such as land and buildings, vehicles, furniture, equipmentand roads which are used for more than one year. The purchase and disposal of fixed

assets is done in line with the Interim Public Procurement and Disposal Regulations,2006:

Each fixed asset should be assigned and marked/engraved with anidentification number.

Any fixed assets with a cost of SSP1,000 or more should be recorded in thefixed assets register.

Fixed Assets Register(PFMMLG, Appendix 8.1)This register is maintained by an officer assigned by the head of finance and includes:

The name, description of the assets Date of acquisition and original cost The Identification number and current location Disposal date and details if relevant.

Control of fixed assets Those charged with responsibility for fixed assets are personally responsible for the

proper handling and to prevent loss or theft. Any losses or discrepancies must bereported promptly to the Chief Administrator.

An annual inventory (physical inspection, counting and recording) of fixed assetsshould be performed by the Head of Finance (assisted by internal audit) andreconciliation made with the fixed asset register.

The Chief Administrator has overall responsibility for ensuring that appropriateinsurance policies for motor vehicles are in force

The Chief Administrator, through the office manager or logistics officer, ensures thatall vehicles are checked/inspected each month and, if necessary, serviced. Thecondition of the vehicles is recorded in a file of inspection reports.

Disposal of fixed assets is by an appropriate method, usually tender or auction.

Acquisition of storesThe procurement of stores is in accordance with the Interim Public Procurement andDisposal Regulations, 2006 and includes: Stores unit receives a copy of the purchase order from the procurement unit

Receipt of stores and other assets is checked by the storekeeper and an officerfrom the user department (or internal audit) and compared with the purchase order. Storekeeper signs the suppliers delivery note and issue a Goods Received Note

(GRN). GRN is signed by the witness. Goods received note and suppliers delivery are submitted to Accounts Unit for later

payment.

Stores IssueOfficials request stores on a SF#3 Stores Requisition Form, which is authorized by theStores Manager before the storekeeper releases the items from the stores.


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Store recordsThe store keeper maintains a record of each item of stores received and issued in abook (PFMMLG, figure 8.1, page 67).

Stocktaking

Stores Manager or the Controller/Inspector of Accounts should carry out quarterlyphysical stocktaking (physically count) and prepare a stores report. This report is sentto the Chief Administrator and copied to the Head of Accounts. Where there is aninternal auditor he/she should witness the quarterly stocktake.


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13. Internal Audit

The Public Financial Management Manual for Local Governments (PFMLG) definesinternal auditing as:

1# 340%/0,4,< /0-&$&0-&0%@ 4CN&3%/:& #7$%;4B 4%5E ,;+;F#,#+'$'43&-,'&


28/40

# stock and fixed assets undertake a periodic review of all fixed assets to ensurethey are being held securely and properly maintained; undertake or observestock counts where significant stock items are being held

# payment orders internal audit may review the used payment orders especiallyfor larger amounts to ensure that they have been prepared accurately and in

accordance with the PFM Manual# commitment and budgetary control review of Budget Control Booksto ensure

they are properly maintained and they are up to date.# financial reports review the monthly/quarterly reports produced to ensure they

are produced promptly and in line with the PFM Manual.

Pre-AuditSection 11(9) of the Public Financial Management and Accountability Act, 2011,states that:

No request for payments shall be approved without prior endorsement by the Internal

Audit Unit.

In addition, FF#17 Cheque/Bank Payment Order requires the Officer in Charge ofAuditing to certify that the payment is order and advised to be paid.

As a result, where an internal audit officer is posted to a local government they shouldundertake pre-audit of all payment orders before the payments are made. This checkis to ensure that:

the payment is regular and the correct forms are being used it has been coded to the correct accounting code sufficient funds are available from this budget line for the payment

all the necessary authorisations have been made.

ReportingInternal audit should issue quarterly internal audit reports as well as reports after theend of every major audit activity or visit. Such reports should summarise the findingsof the internal auditor, recommendations and any responses or actions plans frommanagement. The reports should be sent to the Chief Administrator and the finalreports should be copied to the Auditor General.


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14. Cash and Bank Reconciliation

Introduction

The Cashier should maintain a separate FF#19 Treasury Chest Book(PFMMLG, Appendix

3.10, page 111/112) for cash and a separate one for each bank account operated by the localgovernment. Each month, or whenever a bank statement is received, the Inspector/Controller

of Accounts should undertake a bank reconciliation to check the accuracy of the balances in

the relevant Treasury Chest Book. Public Financial Management Manual for Local

Governments(PFMMLG) pages 53 55.

Cash Count

At least once a week the Inspector/Controller of Accounts (or internal audit) should count the

cash held by the cashier and make sure this amount is the same as the balance recorded in

the Treasury Chest Book. Any differences should be explained and, if necessary, written

instructions given to the Cashier to adjust the Treasury Chest Book in line with these

differences. This is in addition, to the daily cash counts undertaken by the Cashier.

Bank Reconciliation

The Inspector/Controller of Accounts should undertake a bank reconciliation for each of the

local governments bank accounts every time a bank statement is received for an account (at

least once a month):

Step 1: Tick off all the items on the bank statement against entries in the Treasury Chest

Bookfor the relevant bank account.

Step 2: Check to the Register of Paid/Out-Going Chequesand the cheque books (and the

list of unpresented cheques from the last bank reconciliation) to ensure that all

issued cheques are recorded in the Treasury Chest Book. Make a list of cheques

issued which do not appear in the bank statement unpresented cheques. Any

cheques outstanding for more than 6 months are written off by writing an instruction

to the Cashier to adjust the Treasury Chest Book.

Step 3: Identify any bank deposits (cash or cheques) recorded in the Treasury Chest Book

which have not yet been recorded on the bank statement. If any such deposits were

recorded during the last bank reconciliation and still do not appear on the bank

statement the bank should requested in writing to explain.

Step 4: Identify all deductions on the bank statement (bank charges, interest, returned

cheques etc). Instruct the Cashier in writing to make the necessary payment entry in

the Treasury Chest Bookfor each deduction made by the bank.

Step 5: Identify any direct deposits and other receipts on the bank statement that are not

recorded in the Treasury Chest Book. Instruct the Cashier, in writing, to make the

necessary receipt entry in the Treasury Chest Bookfor each receipt received directly

in the bank account.


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Step 6: Identify any errors made in the Treasury Chest Book and instruct the Cashier, in

writing, to make the necessary corrections. Identify any errors made by the bank and

inform them in writing.

After preparing the reconciliation statement, the bank statement balance has to agree with the

balance in the Treasury Chest Book for the bank account. Any remaining differences whichcannot be exactly explained must be investigated before the reconciliation is considered to be

completed properly.

The Inspector/Controller of Accounts should submit to the Head of Accounts:

the complete bank reconciliation statement the relevant adjusted Treasury Chest Bookand bank statement a listing of unpresented cheques, a listing of bank deposits yet to be recorded on the bank statement any further explanations.

TREASURY CHEST BOOK ADJUSTMENTS

Step SSP SSP

Original balance from Treasury Chest Book XXXX

Add:

Credits to bank not yet recorded in the Treasury Chest Book:

Credit transfer 5 XX

Interest received from Bank 5 XXDeposit Understated in Treasury Chest Book, etc. 6 XX XXX

XXXX

Less:

Bank charges 4 XX

Dishonoured Cheques 4 XX

Bank Charges - not yet recorded in the cashbook 4 XX

Standing order Telephone bill etc. not in cashbook 4 XX XXX

Balance from adjusted Treasury Chest Book (c/d below) XXXX


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BANK RECONCILIATION STATEMENT FOR THE MONTH OF ______________

Step SSP SSP

Balance from the Bank Statement XXXX

Add: all receipts paid to bank, but not on statement 3 XX

XXXX

Deduct: Un-presented cheques 2 XX

Adjusted balance as per Bank Statement XXXX

Adjusted balance as per Treasury Chest Book (b/f from above) XXXX

Prepared by: Checked by:

(Name / title) [Inspector/Controller of Accounts] (Name / title) [Head of Accounts]

Date: Date:

Authorised by:

(Name / title) [Chief Administrator]

Date:

The Head of Accounts should check carefully that the bank reconciliation has been

undertaken properly and any inconsistencies are fully explained, instructions have been givento the Cashier and adjustments made to the Treasury Chest Book. If they are content they

should sign and date the reconciliation form and submit this to the Chief Administrator.

Chief Administrator should review the completed bank reconciliation statement and supporting

documents, and sign the statement. After review and approval, the reconciliation statement

and supporting documents should be filed by the Inspector/Controller of Accounts.


32/40


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Format of the Monthly Financial Report

The basic minimum monthly financial report should be produced as follows:___________ COUNTY

STATEMENT OF RECEIPTS AND PAYMENTS for the Month of _______

Current

Quarter

Cumulative

to date

Annual

Budget

Balance

Code Description 1 2 3 3-2

Opening cash & bank balance (a) X X - -

RECEIPTS

113 Taxes on property X X X X

114 Taxes on goods and service s X X X X

116 Unclassified Taxes X X X X

etc X X X X

Total Receipts (b) X X X X

PAYMENTS

211 Salaries and wages X X X X

212 Incentives and Overtime X X X X213 Employer Pension Contribution X X X X

etc X X X X

Total payments (c) X X X X

Cash & bank balance carried

forward (a + b c)

X X X X

CERTIFIED: _________________________________ Date_________________________

Head of Accounts/Finance

APPROVED: ________________________________ Date__________________________

Chief Administrator

As the level of revenue raised and so the level of expenditure of a local government rises, the

full set of financial reports as indicated in the Public Financial Management Manual for Local

Governments(pages 68 - 73) should be produced. These will include separate reports of the

receipts and payments for each department. When local governments are receiving

budgetary or other support from donors the full requirements of the Manual and any other

specific requirements of the donors should be fully complied with.

Review by Chief Administrator

The Chief Administrator should carefully review the monthly Financial Report and seek

answers to any questions they may have from the Head of Accounts.

Distribution of financial reports

Monthly financial reports should be displayed on the local government notice board. Payam

and block council administrators should submit copies of the monthly financial reports to the

Chief Administrator of the county/ urban council not later than the 10th day after the end of the

month.

Chief Administrators of counties/ urban councils should submit copies of quarterly financial

reports to the State Ministry of Finance and the State Ministry of Local Government not laterthan the 15th day after the end of the quarter.


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16. Preparing a Basic/ Primary School Budget

1. General principles

AC# Q#;> A#;$C#4 %5 4#5&(+5% 4#$#%:#5 )%+;+$%;3 4#&(4'5 )4(, 'C# Q#;> A#;$C#4O

AC# F#' P%33 >#';%3 ;33 5(74$#5 () 4#$#%&'5 () %+$(,# )(4 'C# 5$C((3O 633 'C# $(5'5 () 'C# 5$C((3c5

&3;++#> ;$'%:%'%#5 5C;33 ,%+%5'4;'%:# $(5'5 -57$C ;5 $3#;+%+F

,;'#4%;35R )7#3R #'$O1R $744%$73;4 ;$'%:%'B $(5'5 -57$C ;5 '#U' #+574# 'C;' 'C# F#' 57,,;4B %5 >%5&3;B#> (+ ; +('%$#

$(,,(+3B :%5%'#> #4#> ; &7($7,#+'R ;+>

,;># ;:;%3;7$;'%(+R &;4#+'5 >(+(45 #'$ (+ 4#Y7#5'O

AC# F#' P%33 #:#3(> %+ 'C# )(4,;' F%:#+ #5 D;5# N;3;4BR 633(P;+$#5 I;B4(33 ;+>

633(P;+$#5 i ='C#41

2,000 2,000 3,000

212 Incentives and Overtime 2,000 1,000 2,000


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213 Pension contributions(Employer Pension Contribution)

1,000 500 1,000

214 Social benefits(*+$37>#5 "#+' )(4 5';)) ;$$(,,(>;'%(+R A#4,%+;3

D#+#)%'5R H#;'C D#+#)%'5 [ .7+#4;3 XU+5#5R S#>%$;3

D#+#)%' ;+> ='C#4 N($%;3 D#+#)%'51

1,000 500 1,000

22 Use of Goods and Services 12,000 7,000 10,000

221 Travel(*+$37>#5 A4;:#3 633(P;+$#5 i H(,#5'%$ ;+>

*+'#4+;'%(+;3 ;+> A4;:#3 $(5'5 H(,#5'%$ ;+>

*+'#4+;'%(+;31

2,000 500 1,000

222 Staff training and other staff costs(*+$37>#5 A4;%+%+F -H(,#5'%$1R A4;%+%+F -;1R

A7%'%(+ )##5R b(4E5C(&5R N#,%+;45 [ 2(+)#4#+$#5 ;+>

N';)) 4#3($;'%(+L4#&;'4%;'%(+ $(5'51

3,000 500 2,000

223 Contracted services(*+$37>#5 2;57;3 3; '#$C+%$;3 ;+>

&4()#55%(+;3 5#4:%$#5R $(+'4;$'#> 5#$74%'B ;+>

$3#;+%+FR &4%+'%+F ;+> &7:#4'%5#,#+' ;+>

,#>%; $;,&;%F+5R :#C%$3# 4#+';3R Q%4# () #Y7%&,#+'R

&3;+' ;+> ,;$C%+#4BR '4;+5&(4'L5'(4;F# $C;4F#5R '4;>#

5C(P ;+> #UC%#5 P;'#4 ;+> 5#P#4;F# $C;4F#5R #3#$'4%$%'B ;+>

'#3#$(,,7+%$;'%(+R &(5';F# ;+> $(74%#4 $(5'51

1,000 200 500

226 Supplies, Tools and materials(*+$37>#5 S#>%$;3 57&&3%#5`>47F5R b(4E5C(& ;+>

3;P;4# ;+>

5()'P;4# 57&&3%#5 )(4 *2AR &C('($(&%#45R ())%$# P;'#4R

'#; ;+> 5()' >4%+E5R )7#3 [ 37%:%>7;35 ;+>

(4F;+%5;'%(+5R N'7>#+' D#+#)%'5 ;+> ='C#4 5($%;3

5#$74%'B 3;+>1

3,000 1,000 4,000

282 Vehicles(Includes motor bikes, cars, Bus or Omni bus, Lorry and

Other transport equipment)

0 0 0

283 Specialized Equipment(*+$37>#5 2(,,7+%$;'%(+ #Y7%&,#+'R F#+#4;'(4R

F#R ,#>%$;3 #Y7%&,#+'R 3; %,,;+#+'

5'47$'74#5R ())%$# )74+%5C%+FR )74+%'74#R ;%4

$(+>%'%(+#45R $(,&7'#4R $(&%#4R ;+> *2A #Y7%&,#+'1

2,000 500 4,000

Total Expenditure Budget 26,000 14,550 28,000


36/40

17. Preparing a Budget for a Primary HealthCentre

1. General principles

The Primary Health Committee agrees the annual budget and receives financial reports from the Officer

in Charge. The Officer in Charge is responsible for controlling the funds of the unit in line with the

agreed budget.

The Officer in Charge should ensure that the budget summary is displayed on notice boards commonly

visited by its stakeholders. The budget is a public document and should be made available to the County

Department of Health, patients, donors, etc on request.

2. Preparation of the budget

The Officer in Charge of the Primary Health Centre must prepare a budget every year in line with

guidance and formats issued by the Ministry of Health and Social Welfare and other government

ministries and agencies. The budget must then be discussed and approved by the Primary HealthCommittee. The budget should translate the Centres planned activities into financial terms.

The budget is prepared in two stages:

First, the Officer in Charge of the centre should identify all expected revenue items including transfers

from the national and state governments and own source revenue e.g. users fees and donors.

The Officer in Charge should then estimate how much is expected from each source and then add all

sources to get total expected revenue for the unit for the year. It is this total expected revenue, which

must then be shared out (allocated) to activities under the expenditure budget.

For grants and donations, the head of the unit must get the revenue figures to put into the budget from

the County department that is responsible or Memoranda of Understanding between the health centre

and donors. Other items of revenue should be estimated from past experience.

Secondly, after the expenditure items have been identified, estimates of the amount to be incurred for

each item should be made. For salaries, the estimate must be made using the current salary of each staff

but taking into consideration salary increases (if any) for the coming year as announced by the

Government and other information from the health department at the County.

The other expenses should be estimated based on previous experience; for example, expenditure on

injection syringes required can be based on previous years usage of syringes.

!--'/#$3#)%" %0 3 +N; O")# 1'&2.#

Code Description

Budget forFY2012/13(Currentyear)(SSP)

Outturn forFY 2012/13(Actual to-datefor the Currentyear)(SSP)

Budget for

FY 2013/14(Comingyear)(SSP)

Revenue

13 Grants 5,000 2,000 6,500

132 Transfers current from other government units 2,000 1,000 2,500

133 Transfers capital 3,000 1,000 4,000

14 Sale of Goods and Services 30,000 20,000 32,000

142 Other administrative fees (e.g. Users fees) 30,000 20,000 32,000

Total PHC Unit Revenue Budget for the year 30,000 20,000 32,000

Expenditure


37/40

21 Wages & Salaries 4,500 4,000 5,200

211 Wages and salaries 2,000 1,000 2,000

212 Incentives and Overtime 1,000 500 1,500

213 Pension contributions 1,000 500 1,000

214 Social benefits 500 500 700

22 Use of Goods and Services 9,000 6,900 11,300

221 Travel 1,000 700 1,000

222 Staff training and other staff costs 2,000 1,400 1,800

223 Contracted services 500 300 3,000

224 Repairs and Maintenance 1,500 1000 2,500

225 Utilities and Communications 1,000 800 1,500

226 Supplies, Tools and materials 2,000 1,700 1,000

227 Other operating expenses 1,000 1,000 500

24 Other expenditure 2,500 1,500 3,000

244 Social assistance benefits 2,500 1,500 3,00028 Capital Expenditure 14,000 7,600 12,500

281 Infrastructure and land 3,000 1,000 4,000

282 Vehicles (ambulance) 8,000 4,600 5,000

283 Specialized Equipment 3,000 2,000 3,500

Total Expenditure Budget 30,000 20,000 32,000

After the I4%,;4B Q#;3'C 2(,,%''## has passed the budget, it should be submitted to the Departmentof Health and Social Welfare at the county for review and advice. Some changes may then have to be

made to the budget to include comments received from the county department headquarters.


38/40

17. Primary School Financial Management

1. The school budgetThe key areas of receipts and payments at the school level are highlighted below. Where goods

or services are received from the State or a donor these should be described:

Figure 1: School Revenue Budget

Revenue

CodeDescription

Budget

2013/14

(SSP)

132 Transfers current from other government units(Grant from State Government for operating costs)

0

133Transfers capital(Grant from State Government for capital expenditure)

0

135 Transfers from International Organisations(for example, teacher kit from UNICEF)

0

142 Other administrative fees(Registration fees, Development fees, Examination fees, Report card fees, Emergency fees, Payamfees, School uniform fees)

20,000

Total School Revenue Budget for the year 28,000

Figure 2: School Expenditure Budget

Expenditure

CodeDescription

Budget

2013/14

(SSP)

21 Wages & Salaries 7,000

Wages and salaries 3,000211

-*+$37>#5 D;5# N;3;4BR 633(P;+$#5 I;B4(33 ;+> 633(P;+$#5 i ='C#41

212 Incentives and Overtime 2,000

213 Pension contributions(Employer Pension Contribution)

1,000

Social benefits 1,000214

(*+$37>#5 "#+' )(4 5';)) ;$$(,,(>;'%(+R A#4,%+;3 D#+#)%'5R H#;'C D#+#)%'5 [ .7+#4;3 XU+5#5R S#>%$;3 D#+#)%'

;+> ='C#4 N($%;3 D#+#)%'51

22 Use of Goods and Services 10,000

Travel 1,000221

(*+$37>#5 A4;:#3 633(P;+$#5 i H(,#5'%$ ;+> *+'#4+;'%(+;3 ;+> A4;:#3 $(5'5 H(,#5'%$ ;+> *+'#4+;'%(+;31 Staff training and other staff costs 2,000222

(*+$37>#5 A4;%+%+F -H(,#5'%$1R A4;%+%+F -;1R A7%'%(+ )##5R b(4E5C(&5R N#,%+;45 [ 2(+)#4#+$#5 ;+> N';))

4#3($;'%(+L4#&;'4%;'%(+ $(5'51

Contracted services 3,000223(*+$37>#5 2;57;3 3; '#$C+%$;3 ;+> &4()#55%(+;3 5#4:%$#5R $(+'4;$'#> 5#$74%'B ;+> $3#;+%+FR

&4%+'%+F ;+> &7:#4'%5#,#+' ;+> ,#>%; $;,&;%F+5R :#C%$3# 4#+';3R Q%4# () #Y7%&,#+'R &3;+' ;+>

,;$C%+#4BR '4;+5&(4'L5'(4;F# $C;4F#5R '4;># 5C(P ;+> #UC%#5 P;'#4 ;+> 5#P#4;F# $C;4F#5R #3#$'4%$%'B ;+> '#3#$(,,7+%$;'%(+R &(5';F# ;+>

$(74%#4 $(5'51

500

Supplies, Tools and materials 1,000226

-*+$37>#5 S#>%$;3 57&&3%#5`>47F5R b(4E5C(& ;+> 3;P;4# ;+> 5()'P;4# 57&&3%#5 )(4 *2AR &C('($(&%#45R ())%$# P;'#4R '#; ;+> 5()'


39/40

>4%+E5R )7#3 [ 37%:%>7;35 ;+> (4F;+%5;'%(+5R N'7>#+' D#+#)%'5 ;+> ='C#4 5($%;3 5#$74%'B

3;+>1

282 Vehicles(Includes motor bikes, cars, Bus or Omni bus, Lorry and Other transport equipment)

0

Specialized Equipment 4,000283(*+$37>#5 2(,,7+%$;'%(+ #Y7%&,#+'R F#+#4;'(4R F#R ,#>%$;3 #Y7%&,#+'R 3; %,,;+#+' 5'47$'74#5R ())%$# )74+%5C%+FR )74+%'74#R ;%4 $(+>%'%(+#45R $(,&7'#4R $(&%#4R

;+> *2A #Y7%&,#+'1

Total Expenditure Budget 28,000

2. Recording Receipts

The Parent Teacher Association should agree all fees to be charged by the school each year.

Arrangements for reducing or not charging fees for poor families should also be agreed. All

income should be recorded in a book ruled as in Figure 3. An official FF#15 - Receipt of

Income form (Public Financial Management Manual for Local Governments, Appendix 3.4,

page 105) should be provided to everyone who pays money to the school. The original is

given to the person giving the money and the duplicate kept in the book.

All receipts should be paid into the school bank account.

Figure 3: Record of all receipts by the schoolDate Name of payer Purpose of the payment Receipt/ invoice

No.

Amount Signature

of payer

3. Recording Payments

All income should be recorded in a book ruled as in Figure 4. Invoices or receipts should bekept for all payments and these should kept on file in date order.

Figure 4: Format of an expense record for a service delivery unitDate Name of payee Purpose of the payment Receipt/ invoice

No., if any

Amount Signature

of payee


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4. Cash Reconciliation

Each month the Head Teacher should prepare a reconciliation of all the receipts andpayments and compare this to the cash held and the balance in the bank book as shown inFigure 5. Totals (a) and (b) should be the same.

This reconciliation should be reviewed and signed by the School Treasurer and kept on file.Figure 5: Cash reconciliation:

PP ,%'"&/

D;3;+$# () $;5C ;' /5'Z73B ^K/^\ kkk

6HH\ A(';3 () ;33 4#$#%&'5

Documents

Quick Reference Guides to Financial Management of the Counties of South Sudan