Accountancy Handbook

AccountancyAccountancy HandbookHandbook

July 2010 Updates: see below

Finance Department Action Contre la Faim - France

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 1 / 84 Document updates

Notes: The initial version of this document has been drawn up in French (« Manuel COMPTA Fr.doc ») and in English (“Handbook ACCOUNTANCY En.doc”) on the 6th of May 2010. In case of contradictory information the French version will be considered correct.

Updates done after the 6th of May 2010

Date of Author Overview of changes update 06/05/2010 Phil MAQUET New version of the Accountancy Handbook. This new version gathers in a unique Project manager handbook the former Handbooks 03 and 04 of the Admin Kit V2 : - book keeping and supporting, documents (chapters 1 to 3 = former handbook 03), -verifications, closure and reporting (chapters 4 to 9 = former handbook 04). 07/05/2010 Phil MAQUET Chapter 3.2.4 (page 40) : new templates for the valorisation of community contribution (beneficiaries contribution) 07/05/2010 Phil MAQUET Chapter 6.3.1.1.6 – Phase 5A3 cancelled consecutive to the upgrade to SAGA 4-11- 26 (transferring the expat follow up to LEXP book) 10/05/2010 Phil MAQUET Chapter 2.4.3.2.1 completed concerning third party code for salaries/charges for national employees on ECHO contracts. 15/07/2010 Phil MAQUET Hypertext link to Admin Kit V3 online updated (page 3)

14/02/2011 Joële Update 6.3.1 Enter costs recharged to donors // Exchange rate to convert the SIGONNEAU AMC 24/02/2011 Joële Modification Chapter 6.3.1.2 Phase 5B: for equipement SIGONNEAU 10/06/2011 Joële 2.3.2.2.1 Rules Serial number instead of equipement number SIGONNEAU 02/09/2011 Joële 2.1.3 In Kind Donation : add Kit Log reference SIGONNEAU 17/10/2011 Joële Insert 2.6.2 Procedure for entering ODs (consequences in terms of purchase SIGONNEAU procedure) 6.3.1.2 Phase 5B For equipment (amortization 2*4, truck and generator) Modification 6.3.1.1.3 CMM – salaried staffs and CMM – volunteers Modification 3.3.2.3.3 Filing rules for purchase files 08/2012 Joële 3.2.3.5 identification of the kind of payment in 467000 SIGONNEAU 3.3.2.2.3 Archiving All these files must be kept in the mission for 15 years 3.3.2.3.1 Documents to file: delete the purchase dossier 6.3.3.5 Expenses incurred and paid by a partner: import the expenses of the partner, at least at each biannual closure but preferably every month 6.3.6 Phase 5K1 link Banque de France for exchange rate 11/2012 Joële In 4 Monthly verification of cash stocks, change of 4.1.1 Rules SIGONNEAU 05/2013 Joële Sigonneau 1.2 Responsibilities of those in charge of accountancy; The ACF stamp. Add in 3.2.1.1 Invoices issued by suppliers/service providers: “Specific instructions concerning VAT on suppliers invoices” Add in 2.4.3.2.2.9 Donor payments in the field/Consortiums specificities Add 3.2.1.5 Specific cases: Cash Based Intervention 03/2014 Joële Sigonneau Change Function titles (Country Director, HoD Finance, Financial control DEPUTY MANAGER,…) 20/01/2016 Joële Sigonneau In 2.3.3.2.2.2 Recommendations, reference to 2.3.1 DOC FIN Saga

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 2 / 84 Updates done before the 6th of May 2010 Chapters 1 to 3 (former handbook 03 – bookkeeping and supporting documents): Date of update Author Overview of changes

19/08/2008 Phil MAQUET First version (written in French – translated in English on 29/10/2008) Project manager 25/11/2008 Phil MAQUET Chapter 2.4.2.1.3 (page 14) Project code structure (D, E and P added) 10/12/2008 Phil MAQUET Chapter 3.3.2.3.3 (page 41) Rules for filing documents justifying expenses 11/02/2009 Phil MAQUET Chapter 3.3.1.1 (page 37 – sheet perforation) + Chapter 3.3.2.1 (page 39) Link to the “filing follow up En Fr.xls” + Chapter 3.3.2.2 (SAGA book printed) 11/02/2009 Phil MAQUET Chapter 3.3.2.3.2 (page 40) concerning the filing order 11/03/2009 Phil MAQUET Replace « financial controller » by « Finance Control Manager » (page 15) 27/05/2009 Phil MAQUET Chapter 2.4.3.2.2.7 (page 21) – Modification of the frame « beware » in order to take into account SAGA Handbook update (version SAGA 4-10) 16/07/2009 Phil MAQUET Chapter 2.4.5 added (page 24) Budget-Paris (BPA) 24/08/2009 Phil MAQUET Chapters 3.2.2.7 et 2.4.3.2.3.6 added – Expenses incurred by the mission paid by the headquarters (586500) 02/10/2009 Phil MAQUET INTERCO procedure updated (new account codes for expenses done BY other missions under Madrid/London/NY/Montreal supervision. Modifications in chapters 3.2.3.6 + 3.2.3.7 + 2.4.3.2.2.2 05/11/2009 Phil MAQUET Third party code for national staff (chapter 2.4.3.2.1 – page 18) 10/12/2009 Phil MAQUET Splitting – chapter 2.1.1 (page 7) and chapter 3.3.1.1 (pages 37+38)

16/12/2009 Phil MAQUET Field « purchase dossier ref. » added chapter 2.1.1 (page 7) and chapter 3.3.1.1 (page 36) 17/12/2009 Phil MAQUET In kind donation valorisation : chapters 2.1.3 (book keeping) + 2.4.2.2.5 (contract codif.) + 2.4.2.3.3 (fin. line codif.) + 3.2.4 (supporting documents). 08/01/2010 Phil MAQUET Note added concerning SAGA parameters for BPA budgets – chapter 2.4.5 (page 26) 18/04/2016 Joële Sigonneau Replace Finance Control Manager by Regional Finance Manager

Chapters 4 to 9 (former handbook 04 – verifications, closure, reporting) :

Date of update Author Overview of changes

19/08/2008 Phil MAQUET First version (written in French – translated in English on 29/10/2008) 27/01/2009 Phil MAQUET Page 39 : sentence “the only exception” has been deleted (concerning the monthly closure in December) 11/03/2009 Phil MAQUET Replace « financial controller » by « REGIONAL FINANCE MANAGER » (page 15) 24/08/2009 Phil MAQUET Chapter 4.3.3.4 added (entry in EDMI book) 12/11/2009 Phil MAQUET - Liens vers le plan de financement expatriés (page 18) - Chapter 4.3.3.5 added (entry in extra-accounting books for partners (page 28) 18/12/2009 Phil MAQUET In kind donation valorisation (chapter 4.3.3.3)

The Admin Kit online : http://www.missions-acf.org/kitadmin/v3 User name and password can be given by the REGIONAL FINANCE MANAGER.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 3 / 84 Contents 1 - INTRODUCTION...... 7 1.1 Fundamental principles...... 7 1.2 Responsibilities of those in charge of accountancy...... 8 1.2.1 In the bases...... 8 1.2.2 In the capital...... 8 2 - BOOK KEEPING...... 9 2.1 Fundamental principles...... 9 2.1.1 Book keeping incomes and expenses...... 9 2.1.2 Book keeping cash advances...... 10 2.1.3 Book keeping in kind donations (valorisation)...... 10 2.2 Accounting books...... 11 2.2.1 Cashbook and bankbook...... 11 2.2.2 Coding accounting books...... 11 2.3 Rules for book keeping in accounting books...... 12 2.3.1 Book keeping time frame...... 12 2.3.2 Book keeping...... 13 2.3.2.1 Date...... 13 2.3.2.2 Description...... 14 2.4 Coding...... 15 2.4.1 The account code...... 15 2.4.2 Analytical codes...... 16 2.4.2.1 Project code...... 16 2.4.2.2 Contract Code...... 17 2.4.2.3 Financial Line Code...... 20 2.4.3 The third party code...... 22 2.4.3.1 Definition...... 22 2.4.3.2 How to attribute a third party code?...... 22 2.4.4 The section code...... 28 2.4.5 Particular case : expenses on « Budget-Paris » (BPA)...... 28 2.5 The table link...... 28 2.6 Entry modifications and ODs in SAGA...... 30 2.6.1 General rule...... 30 2.6.2 Procedure for entering ODs into SAGA...... 30 3 - SUPPORTING DOCUMENTS...... 31 3.1 Definition and fundamental principles...... 31 3.1.1 Definition...... 31 3.1.2 Fundamental principles...... 31 3.2 Different types of supporting documents...... 31 3.2.1 Documents supporting expenditure (category 6)...... 31 3.2.1.1 Invoices issued by suppliers/service providers...... 31 3.2.1.2 Specific cases: Proof of purchase issued by ACF...... 32 3.2.1.3 Specific cases: supporting documents for bank fees...... 33 3.2.1.4 Specific cases: for expenses paid for by cheque...... 33 3.2.1.5 Specific cases: Cash Based Intervention...... 33 3.2.2 Documents justifying transfers (category 5)...... 34 3.2.2.1 Internal transfers in the same currency (585100)...... 34 3.2.2.2 Internal transfers with currency exchange (585200)...... 34 3.2.2.3 Transfers from headquarters to the field (586100)...... 35 3.2.2.4 Transfers from the field to the headquarters (586200)...... 35 3.2.2.5 Transfers from/to a mission attached to ACF-Paris (586300)...... 35 3.2.2.6 Expenditure by/for a mission attached to ACF-Paris (Intermission) (586400). 36 Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 4 / 84 3.2.2.7 Expenses incurred by the mission paid by the headquarters (586500)...... 36 3.2.3 Supporting documents for advances (category 4)...... 36 3.2.3.1 Guarantees and deposits for rent/hire (460001)...... 36 3.2.3.2 Loans to national staff (460002)...... 37 3.2.3.3 Expatriates' security envelopes (460003)...... 37 3.2.3.4 Advances to suppliers (460004)...... 37 3.2.3.5 Grants or repayments to donors in the field (467000)...... 37 3.2.3.6 Expenses incurred FOR a mission attached to another section (called "INTERCO expenses") (451006, 452006, 453006, 456006)...... 37 3.2.3.7 Expenses incurred BY a mission attached to another section (called "INTERCO expenses") (451812, 452822, 453832, 456862)...... 38 3.2.3.8 Advances on expatriates' allowances/salaries (451006, 452006, 453006, 456006, 472000) 38 3.2.4 Supporting documents for in kind donation valorisations (category 8)...... 38 3.3 Filing supporting documents...... 39 3.3.1 Step 1: filing before the monthly closure (bases and capital)...... 39 3.3.1.1 Administration of supporting documents before filing:...... 39 3.3.1.2 Step 1 filing (before monthly closure)...... 42 3.3.1.3 Timeframe for filing...... 42 3.3.2 Step 2: filing after monthly closure (capital only)...... 42 3.3.2.1 The principle of double filing...... 43 3.3.2.2 Filing by accounting book (to be archived in the mission)...... 43 3.3.2.3 Filing by contract code...... 43 4 - MONTHLY VERIFICATIONS OF CASH STOCKS AND BANK ACCOUNTS (bases and capital)...... 47 4.1 Monthly cash count...... 47 4.1.1 Rules...... 47 4.1.2 Cash discrepancies...... 48 4.1.2.1 Definition...... 48 4.1.2.2 Possible causes...... 48 4.1.2.3 How to manage a cash discrepancy?...... 49 4.1.2.4 Disciplinary action...... 50 4.2 Monthly bank reconciliation...... 51 5 - VERIFICATIONS AND MONTHLY REPORTING FROM THE BASE TO THE CAPITAL...... 52 5.1 Phase 1: Initial verifications carried out by the LOG-ADMIN...... 52 5.1.1 Phase 1A: verification of the accounting books...... 52 5.1.2 Phase 1B: verification of supporting documents...... 53 5.1.3 Phase 1C: verification of cash counts...... 53 5.1.4 Phase 1D: verification of bank reconciliations...... 53 5.2 Phase 2: Sending the documents to the capital...... 54 5.2.1 Paper documents...... 54 5.2.2 Electronic documents...... 54 5.2.3 Deadline for sending monthly reporting...... 54 5.2.4 Copies that must be kept at the base...... 54 6 - MONTHLY CLOSURE: VERIFICATIONS AND ACCOUNTING OPERATIONS IN THE CAPITAL...... 55 6.1 Phase 3: All accounting documents/files are verified...... 55 6.1.1 Phase 3A: verification of books (bases and capital)...... 55 6.1.2 Phase 3B: verification of accounting entries (bases and capital)...... 56 6.1.3 Phase 3C: verification of supporting documents (bases and capital)...... 56 6.1.4 Phase 3D: verification of cash counts (bases and capital)...... 56 6.1.5 Phase 3E: verification of bank reconciliations (bases and capital)...... 57 Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 5 / 84 6.2 Phase 4: The monthly accounting in SAGA is consolidated...... 58 6.2.1 Phase 4A: Import of accounting books into SAGA...... 58 6.2.2 Phase 4B: verification of accounting entries (bases and capital)...... 58 6.3 Phase 5: The monthly accounting in SAGA is finalised...... 59 6.3.1 Enter costs recharged to donors (“lumpsum books")...... 59 6.3.1.1 Phase 5A: For the expatriates...... 59 6.3.1.2 Phase 5B: For equipment...... 63 For any other equipment not included in this list and for which...... 65 6.3.2 Phase 5C: Entering provisions for donors (US government agencies only)...... 66 6.3.3 Entry into extra-accounting books...... 67 6.3.3.1 Phase 5D: “Paris expenses” (EDPA book)...... 67 6.3.3.2 Phase 5 E: “Other missions’ expenses” (EDAM book)...... 67 6.3.3.3 Phase 5F: Valorisation (EVAL book)...... 68 6.3.3.4 Phase 5 F’: Expenses incurred by the mission paid by the HQ (EDMI book). .69 6.3.3.5 Phase 5 F’’: Expenses incurred and paid by a partner (EPXX book)...... 70 6.3.4 Entry into simulation books (committed expenses)...... 70 6.3.4.1 Phase 5G: “Paris committed expenses” (OEPA book)...... 70 6.3.4.2 Phase 5H: “Mission committed expenses” (OMIS book)...... 71 6.3.5 Matching and checking...... 71 6.3.5.1 Phase 5I: Matching...... 71 6.3.5.2 Phase 5J: Checking...... 71 6.3.6 Phase 5K: calculation and entering exchange rates...... 72 6.3.6.1 Phase 5K1: “Strong” currencies...... 72 6.3.6.2 Phase 5K3: Donor exchange rates...... 75 6.4 Phase 6: Verifications before definitive monthly closure...... 76 6.5 Phase 7: Definitive monthly closure...... 76 6.6 Feedback from the capital to the bases...... 77 7 - Phase 8: REPORTING FROM THE CAPITAL TO THE HEADQUARTERS...... 78 7.1 The monthly accounting bundle...... 78 7.1.1 List of documents in the accounting bundle...... 78 7.1.2 Comments...... 78 7.2 Electronic documents...... 78 7.3 Limit for sending monthly reporting...... 79 7.4 Documents to be kept in the capital...... 79 7.5 Verifications and feedback from the headquarters to the capital...... 79 8 - THE BIANNUAL CLOSURE AT THE END OF JUNE...... 80 9 - THE ANNUAL CLOSURE AT THE END OF DECEMBER...... 82 9.1 Rules...... 82 9.2 Annual definitive closure in SAGA...... 83

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 6 / 84 1 - INTRODUCTION

1.1 Fundamental principles

Cash based accountancy

The accountancy that takes place in ACF missions (both in the capital and bases) is a "cash-based accountancy", the inherent idea being that cash flows are behind all book keeping entries.

Two fundamental rules must be adhered to in cash-based accountancy:

 Every financial transaction (expenses or income) must have a corresponding entry in an accounting book (cashbook or bankbook).

 Every financial transaction must be accompanied by a supporting document that proves the transaction really happened.

Verification and reporting

Managing cash flow and book keeping (data entry and the corresponding supporting documentation) give rise to:

 A series of compulsory periodical verifications,

 Reporting from the bases to the capital and from the capital to the headquarters.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 7 / 84 1.2 Responsibilities of those in charge of accountancy

1.2.1 In the bases

 The LOGISTICIAN-ADMINISTRATOR is responsible for accurate book keeping at the base level ; he/she must ensure: - that book keeping entries meet the required standards - that supporting documents meet the required standards.

 The LOG-ADMIN is responsible for the verification and reporting of the base’s accountancy.

The stamp of Action Contre la Faim must be kept in a secure place like a locked drawer.

1.2.2 In the capital

 The HOD FINANCE is responsible for accurate book keeping on the mission. He/she must ensure: - that book keeping entries meet the required standards - that supporting documents meet the required standards.

 The HOD FINANCE is responsible for : - ensuring the quality of the verification on the entire accounting process, - ensuring the quality of the reporting from the mission to the Headquarters.

The stamp of Action Contre la Faim must be kept in a secure place like a locked drawer.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 8 / 84 2 - BOOK KEEPING

2.1 Fundamental principles

2.1.1 Book keeping incomes and expenses

REMINDER (chapter 1.1): all financial transactions (expenses and incomes) must have a corresponding entry in an accounting book (cashbook or bankbook).

 Each financial transaction appears in the book keeping as an entry in an accounting book: the cashbook or the bankbook.

Cashbook: Format: see Admin Kit 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Cash book En Fr.xls / sheet “cash book”

Bankbook: Format: see Admin Kit 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Bank book En Fr.xls / sheet “bank book”

 Every entry must include the following information: Date Entry number Split entry number Description Secondary description1 Purchase dossier reference ( /logistic reference) Income or expense Currency Account code Project code (except for category 4 and 5 entries) Contract code (except for category 4 and 5 entries) Financial line code (except for category 4 and 5 entries) Third party code Section code2

 Splitting : a single financial transaction can be entered as a splitted accounting entry when a split has to be done on different accounting codes or analytical codes.

Example :

On the 7th of July, the mission buys cement for 1000 USD (100 bags for 10 USD each). - 80 bags of the cement (80%) are used for wells construction on contract A1Q – financial line AB13,

- 20 bags of the cement (20%) are used for drilling on contract A1Q – financial line AB14. 1 The secondary description is mandatory: - for all payments by cheque, see chapter 2.3.2.2 - for equipment purchases, see chapter 2.3.2.2 2 For missions that are attached to ACF-Paris, the section code is always "PA" Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 9 / 84 The financial transaction must be entered as follow : Date Entry N° Split Entry N° Expense Account code Contract code Fin. line code. 07/07 55 1 800 USD 652 201 A1Q AB13 07/07 55 2 200 USD 652 201 A1Q AB14

For splitting accounting entries, see:

- Data entries in SAGA : SAGA Handbook - Chapter E – Paragraph 2.1 In Admin Kit / 2. Accountancy / 2.3 SAGA / 2.3.2 ACF SAGA Handbook 4.10

- Supporting documents administration and filing: Handbook ACCOUNTANCY - Chapter 3.3.1.1.

- Splitting supporting documents examples: In Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.2 Additional documents / Splitting Example En Fr.xls

2.1.2 Book keeping cash advances  From an accounting perspective cash advances are not considered nor as an expense nor as a receipt. They are dealt with by an altogether different process described in Handbook CASH MANAGEMENT - Chapter 3.8.

 Every cash stock must have its own unique, single-currency advances book. (journal des avances) . Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms/ Cash book En Fr.xls / sheet “advances”

 When the CASHIER gives out a cash advance: - a corresponding entry must be recorded in the advances book - the PURCHASER must sign for the advance in the advances book, - it requires no specific supporting document.

 When the PURCHASER returns a cash advance: - a corresponding entry must be recorded in the advances book - the CASHIER must sign for the reimbursement in the advances book, - it requires no specific supporting document.

2.1.3 Book keeping in kind donations (valorisation)  All in kind donation value above 5000 Euro have to be the entered in the accountancy.

 The valorisation book keeping must be done by the HOD FINANCE in a valorisation extra- accounting book in SAGA (EVAL book).

Concerning valorisation, also refer to : . Note dated 14/12/2009 valorisation of in kind donations : See Admin Kit / 04 ACCOUNTANCY / In kind donation procedure En.doc . Contracts codification: Handbook ACCOUNTANCY – chapter 2.4.2.2.5 . Financial lines codification : Handbook ACCOUNTANCY – chapter 2.4.2.3.3 . Supporting documents : Handbook ACCOUNTANCY – chapter 3.2.4 . Entry in SAGA : Handbook 04 – chapter 6.3.3.3 and SAGA User book chapter E paragraph 2.4.1 . Log Kit V.3/Logistic management/7.3 Logistics reporting/In Kind Donation/ACF France Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 10 / 84 2.2 Accounting books

2.2.1 Cashbook and bankbook

Accounting entries are recorded in accounting books.

Each accounting book is: - single-currency - monthly

Cash transactions (expenses and incomes) are recorded in cashbooks (journaux de caisse) Format: : Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms/ Cash book En Fr.xls / sheet “cash book”

Monetary movements to and from bank accounts (credit and debit) are recorded in bankbooks (journaux de banque) . Format: : Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms/ Bank book En Fr.xls / sheet “bank book”

2.2.2 Coding accounting books

Each book is identified by an accounting book code made up of 7 characters:

1 letter: B or C (B for a bankbook / C for a cashbook) 2 letters: represent the name of the base or the capital 1 number: ranking from 1 to 9 3 letters: represent the currency

Example 1: Main safe in CFA Francs in Khorogo (Ivory Coast): CKO1CFA Example 2: Secondary safe in CFA Francs in Khorogo (Ivory Coast): CKO2CFA

See also: SAGA Handbook - Chapter D - Paragraph 2.8 In Admin Kit / 05 SAGA / SAGA Handbook En 4.6

For the concepts of "main safe" and "secondary safe", see Handbook CASH MANAGEMENT / Chapter 2.2.4

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 11 / 84 2.3 Rules for book keeping in accounting books

2.3.1 Book keeping time frame

 Accounting books must be kept up to date in real time.

 When a cash advance is taken from a safe, this advance must be recorded immediately in the advances book

Format: see Admin Kit 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Cash book En Fr.xls / sheet “advances”

Refer also to the detailed procedure in Handbook CASH MANAGEMENT - Chapter 3.8

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 12 / 84 2.3.2 Book keeping 2.3.2.1 Date

 For the cashbook The date of the entry in the cashbook corresponds to the date of the expense (or income)3.

 For the bankbook  When ACF issues a cheque, the date of the entry in the bankbook corresponds to the date on wich the cheque was signed (see example 1 below).

 When ACF requests a bank transfer, the date of the entry in the bankbook corresponds to the date on which the bank transfer request was signed.

 In the case of financial transactions from/to the ACF bank account where the exact date is not immediately known (transfers from the headquarters, bank charges etc.) the bankbook must be completed before the end of the month based on the monthly bank statement.

For these transactions the entry date must correspond to the one on the bank statement.

Example 1: An invoice is issued on 7th July. It is received by ACF the same day. ACF writes a cheque on 8th July. The cheque is delivered to the supplier on 9th July. The supplier puts the cheque into his bank on 10th July. The date the cheque is debited according to the bank statement is 13th July. In this case, the date of the entry recorded in the bankbook will be 8th July (the date the cheque was signed).

3 For this reason an invoice may carry a different date than the one of the accounting entry. Example: an invoice issued on 3rd January is paid by ACF on 4th January; here the date recorded in the accounting entry will be 4th January. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 13 / 84 2.3.2.2 Description

2.3.2.2.1 Rules

GENERAL RULES  The entry's description must be clear and comprehensible (see recommendations below), particularly for external auditors (from auditing firms or commissioned by donors) likely to require this information.

 The description must be no longer than 50 characters.

 For equipment purchases (accounts 650400, 650500, 650600, 650700, 650800, 651000-003, 651100-102, 651200-202, 651300, 651303) the secondary description is mandatory and must mention the serial number or, failing that, the "equipment code"4 assigned by the logistics team.

SPECIFIC RULES FOR BANKBOOKS  The secondary description must contain the cheque number.

2.3.2.2.2 Recommendations

 In order to homogenize the way descriptions are entered, the HOD FINANCE can assign standard descriptions using the following guide: 734_T21 SAGA guide codes En Using standard descriptions will make reading documents that are produced at a later stage much easier (in particular the analytical ledger). Document: see Admin Kit/ 2. Accountancy / 2.3 SAGA/ 2.3.1 DocFin SAGA/ 734 P02 The Main Accounting Functionality of SAGA / 734_T21 SAGA guide codes En

 Include the relevant time period for the following payments: salaries, per diem, building and vehicle hire, water/electricity/gas bills

 When an expense is related to a specific equipment, mention the code identifying that equipment (ex: petrol 32 litres vehicle 14)

 Avoid using the following words: "invoice", "expenses", "purchase", "cost", "various".

 Avoid using terms that are too technical or jargon

Abbreviations or initials may be used if they always indicate the same thing and if they are used "frequently" (at least once a month for several months).

4 For more information about the "equipment code", see ACF Kit Log V3 Logisitc support 4.2 Equipment The "equipment code" is made up of six elements: Example of equipment ID: COTELAOHU00025032TypeFamillyCountryBasePD or IKD referenceACF number This equipment is the 32d telephone, it has been purchased in Huambo, Angola, as part of the 25th Purchase dossier for this base. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 14 / 84 2.4 Coding

2.4.1 The account code

The account code describes the nature of the financial transaction.

Every entry in an accounting book must contain an account code.

The list of account codes is given in the chart of accounts. (in French: le plan comptable) Document: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.2 Additional documents / Chart of accounts En Fr.xls

The account code is made up of 6 characters (six numbers)5.

8 account categories exist in the chart of accounts, only the following are used: - category 4: advances - category 5: transfers - category 6: expenses - category 7: incomes

5 Except for alphanumeric account codes (4 numbers + 2 letters); these codes are only used for certain accounting operations (entered in the capital) relating to costs re-billed to donors (expatriate "lumpsums", equipment depreciation and provision for audit (US donors only)). Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 15 / 84 2.4.2 Analytical codes Accounting entries in categories 6, 7 and 8 must include the relevant analytical codes. Accounting entries in categories 4 and 5 do not require an analytical code.

2.4.2.1 Project code

2.4.2.1.1 Definition "A project is a precise activity in a defined geographical area. From a financial point of view, a project is a cost centre".6

2.4.2.1.2 Approval for a project code

Rules No new project code can be created without approval from the REGIONAL FINANCE MANAGER.

2.4.2.1.3 Project code structure in SAGA

In SAGA, every project is defined by a project code made up of 5 characters:

2 letters: identify the base or the capital +1 letter: identifies ACF’s technical field C = Coordination D = Disaster preparedness / Risk prevention E = Evaluation / Exploratory mission F = Food security H = Water and sanitation M = Medical N = Nutrition P = Psychology / Mental Health R = Research O = Other +2 numbers: ranking from 1 to 99

Example 1: SPN02 = the San Pedro base (Ivory Coast), Nutrition project n°02 Example 2: ABC01 = in the capital Abidjan (Ivory Coast), Coordination project n°01

2.4.2.1.4 Project code structure in AGRESSO

In AGRESSO, project codes are defined as follows: country code (2 letters) + project code (as defined above):

Example 1: CISPN02 = at the San Pedro base (Ivory Coast), Nutrition project n°02 Example 2: CIABC01 = in the capital Abidjan (Ivory Coast), Coordination project n°01

6 Extract from SAGA Handbook - Chapter D - Paragraph 2.2 Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 16 / 84 2.4.2.2 Contract Code

2.4.2.2.1 Definition "A financing contract is a budget allocated by a donor to the mission."7 A financing contract may finance one or several projects in the same mission.

2.4.2.2.2 Approval for a contract code

No new contract code can be created without approval from the REGIONAL FINANCE MANAGER.

2.4.2.2.3 Contract code structure in SAGA In SAGA, every financing contract is defined by a contract code made up of 3 or 4 characters:

1 letter + 1 number:donor code identifying the donor See the donor code list: Donor code list En Fr.xls Document: see Admin kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.2 Additional documents /Donor code list En Fr.xls

+ 1 or 2 characters (1 letter or 2 numbers): ranking from A to Z and then from 01 to 09

Example: ECHO contract n°3 = A1C ECHO contract n°26 = A1Z ECHO contract n°27 = A101 ECHO contract n°28 = A102

2.4.2.2.4 Contract code structure in AGRESSO In AGRESSO, financing contract codes are defined as follows: country code (2 letters) + contract code (as defined above):

Examples: ECHO contract n°3 in Nepal = NPA1C ECHO contract n°26 in Mongolia = MGA1Z ECHO contract n°27 in Myanmar = BIA101 ECHO contract n°28 in Laos = LAA102

This code must appear on the files of invoices filed by donor.

7 Extract from SAGA Handbook - Chapter D - Paragraph 2.3 Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 17 / 84 2.4.2.2.5 Particular case : in kind donation contract codification ( (valorisation)

When ACF receives in kind donations, there are two scenarios:

 Case 1 : donation WITH a contract signed between ACF and the donor

When the contract is signed:

o Step 1 : the LOGISTIC DEPARTEMENT transfers a scanned version of the contract to the HOD FINANCE,

o Step 2 : the HOD FINANCE must send the contract scanned to the FINANCIAL CONTROLLER and to the POOL DESK ASSISTANT, so that the contract code to be used in SAGA and AGRESSO can be validated,

The contract code is validated as follow: . Either it is a simple donation contract (items donation without complementary funding): in this case, only one contract code will be created. . Or it is a donation contract with a complementary funding (cash) : in this case, two contract codes will be created : - one contract code for the financial part, - one contract code for the valorised part8. NB : concerning the codification for valorisation financial lines, see chapter 2.4.2.3.3.

o Step 3 : the HOD FINANCE must create the contract code(s) in SAGA.

o Step 4 : the HOD FINANCE must send the original contract to the POOL DESK ASSISTANT (with the monthly accounting bundle),

o Step 5 : the HOD FINANCE must make 3 copies of the contract for : . The LOG-COORDINATOR . the PROJECT-MANAGER, . the HOD FINANCE.

 Cas 2 : donation without contract signed between ACF and the donor

When the in-kind donation is received?

o Step 1 : the LOGISTIC DEPARTEMENT must transfer to the HOD FINANCE a scanned version of : . The delivery note, . or the donation certificate, . or the letter of thanks.

o Step 2 : the HOD FINANCE must send the scanned version of one of the document mentioned above (delivery note or donation certificate or letter of thanks) to the FINANCIAL CONTROLLER and to the POOL DESK ASSISTANT so that the contract code to be used in SAGA and AGRESSO can be validated,

8 The contract code for the valorised part has specific parameters in AGRESSO. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 18 / 84 . NB1 : concerning simple donation (items donation without complementary funding), only one contract code has to be created. . NB2 : concerning the financial lines codification for valorisation, see chapter 2.4.2.3.3.

o Step 3 : the HOD FINANCE must create the contract code in SAGA.

o Step 4 : the HOD FINANCE must send the original document (delivery note or donation certificate or letter of thanks) to the POOL DESK ASSISTANT (with the monthly accounting bundle),

o Step 5 : the HOD FINANCE must make 3 copies of the document (delivery note or donation certificate or letter of thanks) for : . The LOG-COORDINATOR . the PROJECT-MANAGER, . the HOD FINANCE.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 19 / 84 2.4.2.3 Financial Line Code

2.4.2.3.1 Definition In a financing contract the budget is usually presented as a series of financial lines9.

2.4.2.3.2 Approval for financial line codes

Allocating codes to financial lines in a financing contract must first be approved by the REGIONAL FINANCE MANAGER. This approval must be given at the same moment as the approval for the table link (see chapter 2.5)

2.4.2.3.3 Financial line code structure in SAGA Within one donor budget, every financial line is defined by a financial line code made up of 4 characters:

2 letters + 2 numbers

********************************* Some specific financial lines have systematicaly the same codification :

- In kind donation valorisation 10 : always start with VA Example : VA00…. Seeds VA01 ….Rice VA02 … Drugs

- Overheads :…………always YY00

- Reserve : ……… always ZZ00

The financial line code is an internal ACF code.

Example 1: see Table link example En Fr.xls Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.2 Additional documents / Table link example En Fr.xls

Example 2:

9 The term "budget line" is sometimes used but the exact term is in fact "financial line" which is also used in SAGA. 10 Concerning the creation of contract codes for in kind donations, see chapter 2.4.2.2.5 Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 20 / 84 In Chapter 1 Sub-chapter 1: Financial line 1: AA00 Financial line 2: AA01 Financial line 3: AA02 Sub-chapter 2: Financial line 1: AB00 Financial line 2: AB01 Sub-chapter 3: Financial line 1: AC00 Financial line 2: AC01 In Chapter 2 Sub-chapter 1: Financial line 1: BA00 Financial line 2: BA01 Financial line 3: BA02 Sub-chapter 2: Financial line 1: BB00 Financial line 2: BB01 In Chapter 3 Sub-chapter 1: Financial line 1: CA00 Financial line 2: CA01 Sub-chapter 2: Financial line 1: CB00

For coding financial lines in a financing contract refer also to the SAGA Handbook – chapter D / Paragraph 2.3.2

2.4.2.3.4 Financial line code structure in AGRESSO For a given donor contract the coding of the financial lines is the same in SAGA than in AGRESSO.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 21 / 84 2.4.3 The third party code

2.4.3.1 Definition

The third party code identifies an entity that has a regular financial exchange with the ACF mission.

These different entities are: - goods and service suppliers (companies, tradesmen, landlords or the owners of hired vehicles etc...) - private or public individuals (NGO, Agencies, administrative authorities, financial services, customs, tax office...) - donors - ACF expatriates - ACF national staff - other ACF missions (attached to ACF-Paris or another section (ACF-Madrid, London, New York...)) - the ACF-Paris headquarters - the ACF mission itself - the mission's banks and cash stocks - other cases: o invoices not yet received (accrued) - FNP ('factures non parvenues' in French) o charges to be distributed/allocated - CAR ('charges à répartir' in French)

2.4.3.2 How to attribute a third party code?

 Third party codes are defined by the HOD FINANCE following the guidelines below:

2.4.3.2.1 For expenses (category 6) See also SAGA handbook Chapter E / Paragraph 2.3.1

Entering a third party code for a category 6 accounting entry is OPTIONAL. It may be useful however in cases where ACF engages regularly with a certain entity (supplier, public administration...) to be able to evaluate financial fluctuations over a given time period. . The third party code can be made up of between 1 and 8 characters: Examples: CEGETEL REGIENAT FUEL3

. In the case of national staff : o Entering the third party code is generally optional. o Nevertheless, entering the thirds party code for ECHO contracts is strongly recommended in order to facilitate the annex finalisation at the end of the contract. o Refer to the SAGA Handbook Chapter D / Paragraph 2.4.2.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 22 / 84 2.4.3.2.2 For advances (category 4) Refer also to the SAGA Handbook Chapter E / Paragraph 2.3.2 (book keeping advances) Refer also to the SAGA Handbook Chapter E / Paragraph 2.4.2 (other missions' expenses)

Entering a third party code for a category 4 entry is COMPULSORY.

2.4.3.2.2.1 Transfers from/to a mission attached to a different ACF section (Interco)  Account codes: 451001 (London) 452001 (Madrid) 453001 (New York) 456001 (Montreal)  Third party code: identifies the two countries concerned = country code11 of the mission sending the transfer + country code of the mission receiving it = 2 letters + 2 letters

Example: The Sierra Leone Mission (attached to ACF-Paris - Country code = SL) transfers 10,000 USD to the Guinea mission (attached to ACF-Madrid - Country code = GU) The third party code will be SLGU.

2.4.3.2.2.2 Purchases made by/for a mission attached to a different ACF section (Interco)  Account codes: Purchases made FOR : London : 451002 Purchases made BY : London : 451812 Madrid : 452002 Madrid : 452822 New York : 453002 New York : 453832 Montreal : 456002 Montreal : 456862  Third party code: identifies the two countries concerned = country code12 of the mission making the purchase + country code of the mission receiving it = 2 letters + 2 letters

Example: The Sierra Leone Mission (attached to ACF-Paris - Country code = SL) makes a purchase costing 500 USD for the Guinea mission (attached to ACF-Madrid - Country code = GU) The third party code will be SLGU.

For more information about other "missions'" expenses, see Handbook CASH MANAGEMENT Chapter 4.4

2.4.3.2.2.3 Advances on salaries/allowances for expatriates under contract with a different ACF section (Interco)  Account codes: 451006 (London) 452006 (Madrid) 453006 (New York) 456006 (Montreal)  Third party code: identifies the expatriate concerned = " ResID code" provided by AGRESSO = between 3 and 5 numbers

11 The country code identifies the country where the mission's programmes are running. Document: Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.2 Additional documents / Country code list En Fr.xls 12 See note 9 Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 23 / 84 2.4.3.2.2.4 Guarantees and deposits (460001), advances given to suppliers (460004), provisions for tax payments (462002)  Account codes: 460001: guarantees and deposits for rent/hire 460004: advances given to suppliers 462002: provisions for tax payment  Third party code: identifies the supplier = a minimum of 8 characters Examples: CEGETEL REGIENAT FUEL1 FUEL3 HOUSE14 SOCSECUR

2.4.3.2.2.5 Loans to national staff (460002)  Account code: 460002  Third party code: identifies the national staff member = 7 characters = 2 letters (indicating the base) + 5 numbers (employee number) Example: for Freetown employees: FR00024 FR00024 for Ngozi employees: NG00524 NG00524

2.4.3.2.2.6 Expatriates' security envelopes  Account code: 460003  Third party code: identifies the expatriate concerned = " ResID code" provided by AGRESSO = between 3 and 5 numbers

2.4.3.2.2.7 Invoices not yet received to be allocated on donor budget (unpaid after contract has expired)  Account code: 462001  Third party code: it identifies the transaction itself = 3 letters: automatically FNP Example of how to enter an accrued invoice: On 31st January the office's electricity bill (for January's consumption) hasn't arrived. Therefore, it can't be paid. On 3rd February the electricity bill which totals 70 USD arrives and is paid. This cost must be covered by donor contract A1D (which expired on 31st January). The following accounting entries are required:

In the January cashbook: Date In Out Account code Third party code Contract Code 31 Jan 70 USD ___ 462001 FNP ____ 31 Jan ___ 70 USD 650201 ___ A1D

In the February cashbook: Date In Out Account code Third party code Contract Code 03 Feb ___ 70 USD 462001 FNP ____ Beware : concerning the FNPs, see SAGA 4-10 Handbook Chapter E - Paragraph 2.3.2 (last version corrected in January 2009). Nb : do not take into account the former version of Handbook SAGA 4-6.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 24 / 84 2.4.3.2.2.8 Charges to be distributed and allocated  Account code = 462003  Third party code: identifies the charge to be distributed = 5 characters = CAR + 2 numbers (order number) Examples: CAR01 CAR02 CAR03

Example of a charge to be distributed: On 2nd January the office rent is paid for 2 months (January and February). The amount is 2000 USD (or 2 X 1000 USD).

The rent must be financed as follows: - January’s rent by the donor contract A1D (which expired on 31st January). - February’s rent by the donor contract A1E (which began on 1stFebruary).

The following accounting entries are required:

In the January cashbook: Date Number In Out Account code Third party code Contract Code 02 Jan 7-1 ___ 1000 USD 650200 ___ A1D 02 Jan 7-2 ___ 1000 USD 462003 CAR01 ___

In the February OD book: Date Number In Out Account code Third party code Contract Code 01 Feb 1-1 1000 USD _____ 462003 CAR01 ___ 01 Feb 1-2 ___ 1000 USD 650200 A1E

2.4.3.2.2.9 Donor payments in the field Payments made by donors in the field (and not to the headquarters) must be treated as an advance from an accounting perspective

 Account code = 467000  Third party code: identifies the donor = 8 numbers = "Customer code ID" provided by AGRESSO (see list of donor codes (donor code list En Fr.xls) Document: see Admin Kit/2. Accountancy / 2.1 Book.&support.doc/ 2.1.2 Additional documents / Donor code list En Fr.xls

Examples: the ECHO third party code is: 46000001 the OFDA third party code is: 46000006 the UNICEF third party code is: 46000012

For contracts signed in consortium with another NGO/ Association, (using a donor code with 3 caracters eg: GA1): the third party code you must indicate is the one of the partner (ex: ACTED, Solidarité, OXFAM, …) . The list of available third party codes is in the excel file “donor code list EN FR” (attached). If you do not find the relevant code in the list, please ask your RFR. If the amount is not important, you may also use the 46000033 code (various NGO) Cf 2.1 Bookkeeping & supporting documents\2.1.2 Additional documents\Donors code_2013 En Fr.xls

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 25 / 84 2.4.3.2.2.10 Advances on salary/allowances given to expatriates under ACF-Paris contracts  Account code = 472000  Third party code: identifies the expatriate concerned = "ResID code" provided by AGRESSO = between 3 and 5 numbers

2.4.3.2.3 For transfers (category 5) See also SAGA handbook Chapter E / Paragraph 2.3.3 (transfers) See also SAGA Handbook Chapter E / Paragraph 2.4.2 (other missions' expenses)

Entering a third party code for a category 5 accounting entry is COMPULSARY.

2.4.3.2.3.1 Internal transfers in the same currency (585100) and internal transfers with currency exchange (585200)  Account code = 585100  Third party code: it identifies the cashbook or bankbook sending out or receiving the transfer = accounting book code = 3 letters + 1 number + 3 letters13

Examples: Bujumbura main safe in US Dollars: CFR1USD Bujumbura secondary bank account in Burundi Francs: BBU2FBU

2.4.3.2.3.2 Transfers from headquarters to the field  Account code = 586100  Third party code: it indicates the country of the mission that will receive the transfer = country code of the mission = 2 letters

Examples: For Myanmar: BI For Burundi: BU

2.4.3.2.3.3 Transfers from the field to the headquarters  Account code = 586200  Third party code: it indicates the headquarters receiving the transfer = headquarters code = 2 letters: always PA

13 For more detail, see coding guidelines for accounting books: Chapter 2.2.2 Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 26 / 84 2.4.3.2.3.4 Transfers from/to a mission attached to ACF-Paris (intermission)  Account code = 586300  Third party code: identifies the two countries concerned = country code14 of the mission sending the transfer + country code of the receiving mission = 2 letters + 2 letters

Example: The Sierra Leone Mission (attached to Paris headquarters - Country code = SL) transfers 10,000 USD to the Liberia mission (attached to Paris headquarters - Country code = LB) The third party code will be SLLB.

2.4.3.2.3.5 Expenses incurred by one mission attached to ACF-Paris for another mission attached to ACF-Paris (intermission)  Account code = 586400  Third party code: identifies the two countries concerned = country code8 of the mission incurring the cost + country code of mission the cost is for = 2 letters + 2 letters

Example: The Sierra Leone Mission (attached to Paris headquarters - Country code = SL) makes a purchase worth 500 USD for the Liberia mission (attached to Paris headquarters - Country code = LB) The third party code will be SLLB.

2.4.3.2.3.6 Expenses incurred by a mission paid by the headquarters  Account code = 586500  Third party code: identifies the country concerned = country code8 of the mission = 2 letters

Example: The Sierra Leone Mission : country code = SL.

For more information on expenditure of this sort:  see Handbook CASH MANAGEMENT – Chapter 4.3.2  see Handbook ACCOUNTANCY - Chapter 3.2.2.7

14 The country code identifies the country where the mission's programmes are running. Document: Admin Kit / 03 ACCOUNTANCY / Additional documents / Country code list En Fr.xls 8 The country code identifies the country where the mission's programmes are running. Document:: Admin Kit/2. Accountancy/2.1 Book.&support.doc/ 2.1.2 Additional documents/Country code list En Fr.xls

8 Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 27 / 84 2.4.4 The section code

The section code is automatically "PA" for all accounting entries in missions attached to ACF- Paris

When book keeping happens in EXCEL, this code does not need to be entered. When book keeping is entered directly into SAGA, the section code is automatically entered.

For information, below is a list of section codes: London = LO Madrid = MA New York = NY Paris = PA

2.4.5 Particular case : expenses on « Budget-Paris » (BPA)

The « budget-paris » are specific budgets dedicated to department and services in ACF-Paris headquarters.

It can happen that certain expenses are done by the missions and charged on these budgets.

In this case, the HOD FINANCE has to ask for the project code and the contract code to the REGIONAL FINANCE MANAGER.

The expenses codification has to be done in SAGA in the following way :  Accounting code: always 650 307  Contract code: BPA + 2 figures  Project code : X caracters (figures and/or letters)

Example: expenses done by the mission for the debriefing group (service in the Human Resources Department (DRH)):

In AGRESSO : SER/MISS Code DRH = 30 DOS/CAMP Code debriefing group = 383

Codes to create in SAGA : Project code = SER/MISS + DOS/CAMP ……………example : 30383 Contract code15 = …………………………………………example : BPA01

15 Use the donor code BS (budget siege) in SAGA parameters (in SAGA/parameters/missions/financing/financing contracts/sheet Contract) Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 28 / 84 2.5 The table link

Definition: The table link is a document which links each financial line for a given donor budget to one or more account codes.

There is no standard format for the table link.

See table link example: Table link example En.xls Document: see Admin Kit/2. Accountancy / 2.1 Book.&support.doc/ 2.1.2 Additional documents / Table link example En.xls

 For each donor budget the table link must be drawn up by the HOD FINANCE and approved by the REGIONAL FINANCE MANAGER.

 The following information must appear on the document: - all the donor budget financial lines, - the code for each financial line, - the account codes linked to each financial line.

 This document must be drawn up at the latest immediately after the contract has been signed by the donor.

 If there is a chance that the contract will not be signed by the donor before its start date, the mission can request a Z2; in this case the table link must be produced by the HOD FINANCE and approved by the REGIONAL FINANCE MANAGER at the same time that the Z2 is requested.

BEWARE: In case of co-funding the co-funding plan must be approved before the table link.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 29 / 84 2.6 Entry modifications and ODs 16 in SAGA

2.6.1 General rule

 An OD on an accounting entry dated year N can only be made if December of year N has not been closed.

In other words:

 It is not permitted to enter an OD in an accounting period whose year has finished and which has been definitively closed.17

2.6.2 Procedure for entering ODs into SAGA

For more information about modifying accounting entries and ODs in SAGA : see SAGA Handbook Chapter G. Document: see Admin Kit/05 SAGA

Be careful of the consequences for the logistics department of the recording of an OD in terms of purchasing procedures and procurement contract splits, in order to ensure compliance with our internal procedures and our obligations with regard to Donors.

If the administrator is responsible for budgeting, he or she must ensure that the total of all amounts featured on several invoices within one single contract, allocated to the same budget, must not lead to any change in threshold, the consequences of which would be as follows: - Invalidation of the purchasing procedure adopted - Accusation by the Donor, stating that the logistics department has voluntarily divided the contract in order to simplify the procedure adopted. In the context of an audit, this would be equivalent to rendering the expenditure ineligible and therefore to be borne by ACF (Donor rectification).

For further details, please refer to ODs framework memorandum: 2.2 Verification closure & reporting\2.2.2 Additional documents\ODs Framework Memorandum V2.doc

16 OD = "Opérations Diverses" or Miscellaneous transactions = accounting corrections. 17For example: if the current month is March 2011, 2010's bookkeeping has been definitively closed. In this case, it is not permitted to enter an OD on an accounting entry dated 28th December 2010. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 30 / 84 3 - SUPPORTING DOCUMENTS

3.1 Definition and fundamental principles

3.1.1 Definition A supporting document is an authentic, original document that proves that a transaction really happened.

3.1.2 Fundamental principles

REMINDER (refer to: Handbook ACCOUNTANCY - Chapter 1.1)  Every financial transaction must be accompanied by a supporting document that proves the transaction really happened.

When a purchase is made:  The PURCHASER is responsible for the quality of the invoice.  The CASHIER is responsible for checking the quality of the invoice.

3.2 Different types of supporting documents

3.2.1 Documents supporting expenditure (category 6)

3.2.1.1 Invoices issued by suppliers/service providers

The supplier/service provider must produce an invoice for any payment made by ACF.

An invoice must always include the following elements: - date - description of the purchase - quantity - unit price - total invoice amount in numbers + currency - total invoice amount in letters + currency - name of supplier/service provider - signature, stamp or print of supplier/service provider - purchaser details: "Action contre la Faim - Country"18

18 The name must always be written as "Action Contre la Faim + name of mission country" (for example: "Action contre la Faim - Burundi") - The invoice must not mention the name of the person making the purchase. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 31 / 84 - mention “paid”19

 Specific instructions concerning VAT on supplier invoices

Whenever possible, a supplier / service provider invoice has to mention the amount before tax and the amount of VAT on two separate lines,, an notably if the fiscal regulation of the country imposes to do so.

If applicable, in accordance with local regulations, the invoice must also bear the mention of the supplier’s VAT account reference number

When entering the invoice in SAGA, if the tax situation of the mission allows to recover the VAT from the local tax authorities, or if the VAT is not eligible, the VAT amount must be booked separately from the net amount in the dedicated tax account (650310)

3.2.1.2 Specific cases: Proof of purchase issued by ACF

3.2.1.2.1 If the supplier is not able to issue an invoice

If the supplier is not able to provide an invoice, the ACF PURCHASER must use the following format: Invoice form En Fr.xls Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms/ Invoice form En Fr.xls

This form must be filled in and include the following information: - date - name + address of supplier/service provider - purchaser details: "Action contre la Faim - Country"20 - description of the purchase - quantity - unit price - total invoice amount in numbers + currency - total invoice amount in letters + currency - signature, stamp or print of supplier/service provider - ACF PURCHASER's signature - mention “paid” -

This invoice form must only be used in exceptional cases.

3.2.1.2.2 National staff payroll and/or salary slips

Rules for calculating national staff salaries are defined in the HR handbook.

From an accounting perspective, the amounts paid out in national staff salaries must be justified as follows:

19 It can be a stamp affixed or by the supplier or by the cashier or the accountant who did the payment. 20 The name must always be written as "Action Contre la Faim + name of mission country" (for example: "Action contre la Faim - Burundi") - The invoice must not mention the name of the person making the purchase. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 32 / 84 - either by individual payslips each bearing each employee's original signature, - or by a payroll bearing the original signature of every employee having received his salary + the payslips (not signed by employees)

See formats available in "HR handbook" (version 2007)

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 33 / 84 3.2.1.2.3 Supporting documents for expatriate per diems and allowances

All allowance and per diem payments (break allowances, child allowances, cold weather allowances...) must be accompanied by a supporting document.

 PER DIEM From an accounting perspective, the amounts paid out as expatriate per diems must be justified as follows: - either by per diem forms each bearing the original signature of each expatriate, Perdiem expat En Fr.xls - or by a payroll bearing the signature of each expatriate who has received his/her per diem Perdiem expat En Fr.xls

In both cases, use the following form: Perdiem expat En Fr.xls Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms/ Perdiem expat En Fr.xls

 BREAK ALLOWANCE, CHILD ALLOWANCE AND COLD WEATHER ALLOWANCE Use the following form: Allowances expat En Fr.xls Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms/ Allowances expat En Fr.xls

3.2.1.3 Specific cases: supporting documents for bank fees Banks may debit bank charges directly from ACF bank accounts without issuing an invoice. In this case use a copy of the monthly bank statement with the bank charges highlighted (in fluorescent highlighter pen) as the supporting document.

3.2.1.4 Specific cases: for expenses paid for by cheque When paying by cheque it is not compulsory to take a copy of the cheque before it is issued.

The HOD FINANCE and the REGIONAL FINANCE MANAGER may together decide that for internal monitoring reasons a copy of the cheque must in all cases be attached to an original document justifying the expense as well.

3.2.1.5 Specific cases: Cash Based Intervention Monitoring and clear records of all transfers made must be ensured. A table showing the type of documents needed according to the chosen transfer method can be consulted in Kit Log « Cash based Intervention guideline ».

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 34 / 84 3.2.2 Documents justifying transfers (category 5)

All transfers must be accompanied by supporting documents.

3.2.2.1 Internal transfers in the same currency (585100)

3.2.2.1.1 Simple cash transfers Cash transfers between two safes with no intermediary21 must be accompanied by a supporting document. In this case, the internal transfer form: (bordereau de transfert interne) must be used: Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Internal transfer form En Fr.xls

Both sections of this document must be completed and signed by both cashiers. The document must then be divided into two and each section used as the supporting document for each cashbook.

3.2.2.1.2 Cash transfers using an intermediary Cash transfers between two safes using an intermediary22 must be accompanied by a supporting document. In this case, the internal transfer form: (bordereau de transfert interne) must be used: Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Internal transfer form En Fr.xls

Both sections of this document must be completed and signed by the two cashiers and the person carrying out the transfer. The document must then be divided into two and each section used as the supporting document for each cashbook.

3.2.2.1.3 Bank transfer Transfers of funds between two banks must be accompanied by a supporting document. This document may be: - the transfer request signed by the authorised person, - any other document issued by the bank confirming that the transfer request has been processed, - if neither of these documents can be acquired a copy of the monthly bank statement must be used (with the corresponding transaction highlighted in a fluorescent marker pen).

3.2.2.2 Internal transfers with currency exchange (585200)

3.2.2.2.1 Currency exchange in cash Cash currency exchange operations must be accompanied by a supporting document. This document must be: - An official document issued by the exchanger that specifies: o The date o The amount received in currency A in letters + in numbers o The amount returned in currency B in letters + in numbers o The exchange rate used o The exchanger's signature and/or stamp

21 In this case, the cash is transferred directly from CASHIER 1 to CASHIER 2. 22 In this case, the cash is transferred from CASHIER 1 to CASHIER 2 by a third person. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 35 / 84 - If the exchanger is not able to provide a supporting document, the currency exchange form must be used: (bordereau de change)

Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Exchange form En Fr.xls

3.2.2.2.2 Currency exchange between bank accounts Currency exchange operations via bank accounts must be accompanied by a supporting document. This document may be: - the exchange request signed by the authorised person, - any other document issued by the bank confirming that the exchange request has been processed, - if neither of these documents can be acquired, a copy of the monthly bank statement can be used(with the corresponding transaction highlighted in a fluorescent marker pen).

3.2.2.3 Transfers from headquarters to the field (586100) Transfers from the headquarters to the field are accompanied by a supporting document (the transfer request) which is kept at the headquarters.

The entry in the mission's book keeping uses a copy of the bank statement as justification of the transfer; the corresponding line highlighted in a fluorescent marker pen.

3.2.2.4 Transfers from the field to the headquarters (586200) Transfers from the field to the headquarters must be accompanied by a supporting document. This document may be: - the transfer request signed by the authorised person, - any other document issued by the bank confirming that the transfer is on its way or has already arrived, - if neither of these documents can be acquired, a copy of the monthly bank statement can be used (with the corresponding transaction highlighted in a fluorescent marker pen).

3.2.2.5 Transfers from/to a mission attached to ACF-Paris (586300)

3.2.2.5.1 Simple cash transfers Cash transfers between two missions with no intermediary23 must be accompanied by a supporting document. In this case, the internal transfer form: (bordereau de transfert interne) must be used: Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Internal transfer form En Fr.xls

Both sections of this document must be completed and signed by the two cashiers. The document must then be divided into two and each section used as the supporting document for each cashbook.

3.2.2.5.2 Cash transfers using an intermediary Cash transfers between two missions using an intermediary24 must be accompanied by a supporting document. In this case, the internal transfer form: (bordereau de transfert interne) must be used:

23 In this case, the cash is transferred directly from CASHIER 1 to CASHIER 2. 24 In this case, the cash is transferred from CASHIER 1 to CASHIER 2 by a third person. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 36 / 84 Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Internal transfer form En Fr.xls

Both sections of this document must be completed and signed by the two cashiers and the person carrying out the transfer. The document must then be divided into two and each section used as the supporting document for each cashbook.

3.2.2.5.3 Bank transfer Bank transfers between two missions must be accompanied by a supporting document. This document may be: - the transfer request signed by the authorised person, - any other document issued by the bank confirming that the transfer request has been processed, - if neither of these documents can be acquired, a copy of the monthly bank statement can be used (with the corresponding transaction highlighted in a fluorescent marker pen).

3.2.2.6 Expenditure by/for a mission attached to ACF-Paris (Intermission) (586400)

If mission A attached to ACF-Paris incurs expenditures for mission B attached to ACF-Paris: - mission A that has paid keeps a copy of the invoice that acts as the supporting document and sends the original invoice to mission B - mission B uses the original invoice as their supporting document.

For more information on expenditure of this sort:  For definition of "other missions'" expenses and procedures: see Handbook CASH MANAGEMENT – Chapter 4.4  Third party code: see Handbook ACCOUNTANCY – Chapter 2.4.3.2.3.5  Book keeping entry in SAGA: see SAGA handbook - Chapter E - Paragraph 2.3.3 and 2.4.2 In Admin Kit / 2.3 SAGA / 2.3.2 ACF SAGA Handbook 4.10

3.2.2.7 Expenses incurred by the mission paid by the headquarters (586500)

In the case the headquarters pays an expense previously incurred by the mission, the original invoice must be filed and archived by the mission.

For more information on expenditure of this sort:  see Handbook CASH MANAGEMENT – Chapter 4.3.2  Third party code: see Handbook ACCOUNTANCY – Chapter 2.4.3.2.3.6  Book keeping entry in SAGA: see SAGA handbook - Chapter E - Paragraph 2.4 In Admin Kit / / 2.3 SAGA / 2.3.2 ACF SAGA Handbook 4.10

3.2.3 Supporting documents for advances (category 4)

All advances must be accompanied by supporting documents.

3.2.3.1 Guarantees and deposits for rent/hire (460001) The following form may be used: Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Deposit receipt En Fr.xls

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 37 / 84 3.2.3.2 Loans to national staff (460002) The following form may be used: Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Loan Form En Fr.xls

3.2.3.3 Expatriates' security envelopes (460003) The following form may be used: Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Security envelope expatriate En Fr.xls

3.2.3.4 Advances to suppliers (460004)

The supplier must draw up a supporting document.

3.2.3.5 Grants or repayments to donors in the field (467000)

The official letter from the donor confirming the transfer and/or the cash request signed by the HoM/Country Director can act as the supporting document.

To identify the kind of payment received on the field, it is important that the descriptions are the clearest possible. The descriptions of the account 467000, as specified in the guide SAGA when registering, must be written as per the following codes: IPA: initial payment SPA: supplementary payment (often after an IR (intermediary report), we can have SPA1, SPA2.. if they are several intermediary payments. FPA: final payment In case of adjustment add an A: IPAA, SPAA, FPAA.

Example :

(It is a 1st payment form ECHO on contract A1x).

3.2.3.6 Expenses incurred FOR a mission attached to another section (called "INTERCO expenses") (451006, 452006, 453006, 456006)

If mission A attached to ACF-Paris incurs an expense for mission B attached to another section (ACF- London, ACF-Madrid, ACF-New York or ACF-Montreal): - mission A that has paid keeps a copy of the invoice that acts as the supporting document and sends the original invoice to mission B - mission B uses the original invoice as their supporting document.

For more information on expenditure of this sort: Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 38 / 84  For definition of "other missions'" expenses and procedures: see Handbook CASH MANAGEMENT – Chapter 4.4  Third party code: see Handbook ACCOUNTANCY – Chapter 2.4.3.2.2.2  Book keeping entry in SAGA: see SAGA handbook - Chapter E / Paragraph 2.3.2 In Admin Kit / 2.3 SAGA / 2.3.2 ACF SAGA Handbook 4.10

3.2.3.7 Expenses incurred BY a mission attached to another section (called "INTERCO expenses") (451812, 452822, 453832, 456862)

If mission A attached to ACF-London, ACF-Madrid, ACF-New York or ACF-Montreal incurs an expense for mission B attached to ACF-Paris: - mission A that has paid keeps a copy of the invoice that acts as the supporting document and sends the original invoice to mission B - mission B uses the original invoice as their supporting document. For more information on expenditure of this sort:  For definition of "other missions'" expenses and procedures: see Handbook CASH MANAGEMENT – Chapter 4.4  Third party code: see Handbook ACCOUNTANCY – Chapter 2.4.3.2.2.2  Book keeping entry in SAGA: see SAGA handbook - Chapter E / Paragraph 2.4.2 In Admin Kit / 2.3 SAGA / 2.3.2 ACF SAGA Handbook 4.10

3.2.3.8 Advances on expatriates' allowances/salaries (451006, 452006, 453006, 456006, 472000) The following form must be used: Format: see Admin Kit 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Advance expatriate En Fr.xls

3.2.4 Supporting documents for in kind donation valorisations (category 8)

 Reminder chapter 2.1.3 : « All in kind donation value above 5000 Euro have to be the entered in the accountancy. »

 Supporting documents : To each in kind donation valorisations entry in SAGA (EVAL book) must correspond the following supporting documents :

For products and equipments : - copy of the delivery note or - copy of the donation certificate or - copy of the letter of thanks

+ copy of the price justification document (if the price is not mentioned in the other documents).

For services : - plane tickets : copy of the invoice/voucher or any official document given by the transport organization/company, - freight and cargo : copy of the official transfer justification indicating the items, quantity, volume, weight of products, as well as departure and arrival destinations,

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 39 / 84 + copy of the price justification document (if the price is not mentioned in the other documents).

For beneficiaries participation (work and/or materials)) : - document mentioning the date, the site (village, place…), the name and signatures of the beneficiaries, the number of hours of work, and signature of ACF project manager in charge of this project. Format : Kit Admin / 2. Accoutancy / 2.1 Book.&Support. doc. / 2.1.1 Standard forms / Valo community contributionEn Fr.xls

 Original documents: The original documents justifying the in kind donation valorisations must be send to the HQ on a monthly basis with the accounting bundle.

 Concerning valorisation, also refer to : . Note dated 14/12/2009 valorisation of in kind donations : See Admin Kit / 04 ACCOUNTANCY / In kind donation procedure En.doc . Enregistrement comptable : Handbook ACCOUNTANCY – chapitre 2.1.3 . Codification des contrats: Handbook ACCOUNTANCY – chapter 2.4.2.2.5 . Codification des lignes financières : Handbook ACCOUNTANCY – chapter 2.4.2.3.3 . Entry in SAGA : Handbook ACCOUNTANCY – chapitre 6.3.3.3 and SAGA User book Chapter E paragraph 2.4.1 . Kit Log V.3 (« Stock report » + « Equipment » - références TO BE COMPLETED)

3.3 Filing supporting documents

3.3.1 Step 1: filing before the monthly closure (bases and capital)

3.3.1.1 Administration of supporting documents before filing:

 INITIAL TASKS : each original supporting document must be stuck flat (not folded) to a sheet of white A4 paper25. In order that the document can be easily photocopied and classified: - avoid using staples, paper clips or metal fasteners, - when several documents are stuck to the same white sheet they must not overlap, - don't stick or write anything on the back of the white sheet, - perforate the white sheet.

 CODING STAMP: for each document, the " coding stamp " must appear on the top right hand corner26. Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / coding stamp En Fr.xls

It must be completed in pencil. The "coding stamp" means the following information can be displayed in a standard rectangle:

25 Format : 21 cm X 29 cm 26 The coding stamp: - must be pre-printed on the white paper that the invoice will then be stuck onto, - must be stamped onto the white paper (or directly onto the invoice if it is in 21cm/29cm format). Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 40 / 84  TRANSLATION: Supporting documents in local languages must be translated into English or French27. The following information must be translated: - date - description of the purchase - quantity - unit price - total invoice amount in numbers + currency - total invoice amount in letters + currency - name of supplier/service provider - Purchaser details: "Action Contre la Faim - Country"28

 SPLITTING :

 Splitting on the account code or the project code

If the accounting entry is splitted: - either between 2 (or several) accounting codes, - or between 2 (or several) project codes,

 the following rules must be respected : o The original supporting document must be pasted on a white paper sheet, o The coding stamp must appear and completed twice (or several times).

Example : splitting on a project code :

Entry N° Split Entry N° Expense Account code Project code Contract code Fin. line code. 42 1 6000 USD 652 201 BOH01 B2B DE50 42 2 1000 USD 652 201 BON01 B2B DE50

27 The language supporting documents must be translated into is decided by the ADMIN-COORDINATOR together with the FINANCIAL CONTROLLER. 28 The name must always be written as "Action Contre la Faim + name of mission country" (for example: "Action contre la Faim - Burundi") - The invoice must not mention the name of the person making the purchase. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 41 / 84  Splitting on a contract code and/or financial line code

If the accounting entry is splitted: - either between 2 (or several) contract codes, - or between 2 (or several) financial line codes,  the following rules must be respected : o The original supporting document 29 must be pasted on a first white paper sheet on wich the “coding stamp” must appear, o A copy of the original supporting document must be pasted on a second white paper sheet on wich the “coding stamp” must appear.

Example : splitting on a contract code and a financial line code :

Entry N° Split Entry N° Expense Account code Project code Contract code Fin. line code. 89 1 4000 USD 652 201 BOH01 A1R BB23 89 2 1000 USD 652 201 BOH01 F4G DA00

29 It is recommanded to attach the original document to the contract which is the most susceptible to be audited. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 42 / 84 Concerning splitted accounting entries, see :

- Splitting examples : In Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.2 Additional documents / Splitting Example En Fr.xls

- Bookkeeping for splitted entries : Handbook ACCOUNTANCY - Chapter 2.1.1

- Entering datas in SAGA : SAGA hnadbook - Chapter E – Paragraph 2.1 In Admin Kit / 2. Accountancy / 2.3 SAGA / 2.3.2 ACF SAGA Handbook 4.10

3.3.1.2 Step 1 filing (before monthly closure)

Once the documents have been dealt with as described above they must be filed: - per month - per accounting book - by entry number.

3.3.1.3 Timeframe for filing Stamping and filing supporting documents must be carried out regularly throughout the month to avoid a large workload at the end of the month. If there are more than 10 entries per day in a book, both procedures (stamping and filing) must be done daily.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 43 / 84 3.3.2 Step 2: filing after monthly closure (capital only)

3.3.2.1 The principle of double filing

At the end of each month, each accounting book undergoes a series of checks and verifications (see Chapter 6.1).

The supporting documents for every accounting book are sent to the capital and undergo a specific verification. Once this verification has been completed, the final filing can be done; this is a double- filing following the rules described below.

 The double filing must be carried out at the end of each month after the accounting bundle has been sent to the headquarters.

The filing follow-up can be done based on the following document ; Document : see Admin Kit/ 2. Accountancy / 2.1 Book.&support.doc/ 2.1.2 Additional documents / filing follow up En Fr.xls

3.3.2.2 Filing by accounting book (to be archived in the mission)

3.3.2.2.1 Documents to file These documents will be included: - First page : book printed in SAGA - photocopies of documents supporting expenditure (category 6) - originals of transfer documents (category 5) - originals of supporting documents for advances (category 4)30

3.3.2.2.2 Filing rules In these files documents must be filed in the following order: - by accounting month - by accounting book (alphabetic order) - by entry number (increasing)

These files will provide the mission with a complete record of all supporting documents.

3.3.2.2.3 Archiving All these files (filed by accounting book) must be kept in the mission for 15 years.

3.3.2.3 Filing by contract code

3.3.2.3.1 Documents to file The following documents will be included: - Originals of documents supporting expenses (category 6)31.

3.3.2.3.2 Rules for filing documents justifying expenses 30 Except for expatriates' advances on salaries/allowances: the original must be sent to the headquarters, make a photocopy. 31 Except Paris expenditure recorded in the EDPA book in SAGA. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 44 / 84  FILING ORDER The filing order must correspond to the order of the analytical ledger report that SAGA generates for a single month, that is in the following order : - by contract code32 - per month - by financial line (alphabetic order)33 - by date (increasing) - by accounting book (alphabetic order) - by entry number (increasing)

 ANALYTICAL LEDGER Each new month must begin with a printout of the analytical ledger for the month. This printout includes all accounting entries, including: - expenses recorded in the EDPA book34 in SAGA - expenses registered in the EDAM book35 in SAGA - ODs - expatriate "lumpsums" - equipment depreciation - provisions for audit (only when the American Government is the donor),

 LABELLING THE FILES The supporting document files must be labelled. Use the label format filing supporting documents: Format: see Admin Kit /2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Filing label En Fr.xls

 HOW TO FILE ODs36 : When an expense is modified by adding an OD to the: - contract code - and/or the financial line code, The original supporting document must be filed according to the contract and financial line after correction.

 "OTHER MISSION" INVOICES (entered in the EDAM book): The original supporting documents for expenses incurred by other missions must be filed with the supporting documents for the donor contract they relate to.

3.3.2.3.3 Filing rules for ‘purchase files’

The Logistic Department is in charge of filing the original purchase dossier. For every type of purchase, the Supply Purchase Order has to be stapled to the invoice. A delivery confirmation (or a copy of the delivery note) signed by the Logistic Department has to be annexed to the invoice in order to justify that the whole items were received when paying.

32 Including the budget structure (Z1) - Do not mix more than one contract code in a single folder 33 Only financial lines that include real expenses are relevant; lines for expatriate lumpsums, equipment depreciation and audit provisions for OFDA/USAID are not relevant here. 34 Expenses-Paris 35 Expenses-"other missions" 36 OD = "Opérations Diverses" or Miscellaneous Transaction = accounting corrections Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 45 / 84 NB: The procedures for filing the purchase dossiers are detailed in the Log Kit V3.0 / Project cycle 2.2 Archiving 01 - Archiving guidelines

Extract : « There is only one original set of documents in the Purchase Dossier and it is kept and archived in the Logistics Department, while the original of the invoice stays with the Admin /Finance department ». In order to find out the logistic documents, see the archiving table of the Logistic Department: 2.2 Verification closure & reporting\2.2.2 Additional documents\Copie de 01.Archiving_Table_V3_2.xls

3.3.2.3.4 Complementary files to complete filing

At the end of each financing contract two mores files complete the supporting document filing:

1) The “general file” It contains the following documents: a. the final financial report approved by the headquarters b. if necessary any other component of the financial report: Example for ECHO: - the expatriate status - the national staff status - the stocks and equipment report

c. A print out from SAGA of the “detailed” budget follow up by month d. A print out from SAGA of the analytical ledger for the expatriate financial lines + the expat financial report. (print out from SAGA in SAGA/Printout/expat staff/financial report.) e. A print out from SAGA of the analytical ledger for the equipment depreciation financial lines + the equipment depreciation cards. f. A print out from SAGA's analytical ledger for audit provision financial lines (US government contracts only).

2) the "purchase file" Mentioned in the chapter above.

3.3.2.3.5 Documents to be sent to Paris

For a given donor contract the documents to be sent to Paris ("general file", + invoices + purchase files) are decided by the INSTITUTIONAL DONORS RELATIONS SERVICE (SRBI) and the REGIONAL FINANCE MANAGER.

When these documents are sent to Paris, follow the rules below: 1) number the files from 1 to X a) "general file" = 1 b) supporting document files = from 2 to (X-1) c) "purchase files" = X

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 46 / 84 2) take the documents out of the folders and bind them in bundles using archiving binders (plastic binders)37

Important: The cover sheet of each bundle must give the following information:

- Action contre la Faim+ Country (example: Action contre la Faim – Burundi) - name of donor (example: OFDA) - country code + contract code (example: BUB2A) - file number / total number of files (Example: File 4/12) - and according to content: - either « GENERAL FILE », - or "INVOICES" +Month+Year+ Financial lines (Example : INVOICES MARCH 2009 financial lines from AA00 to BA50) - or « PURCHASE FILES »,

Use the following formats: Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms/ Cover pages donor filing En Fr.xls

3) pack the final bundles in a cardboard box that can be sent to the headquarters.

The boxes' content must be identified and include the following information: - Action contre la Faim+ Country (example: Action contre la Faim – Mongolia) - country code + contract code (example: MGA1B) - file number / total number of files (Example: Files 1 to 4 /12)

Important: The logistics team must supervise the dispatch of these boxes to the headquarters.

37 To order FASTENER archiving binders use the pre-completed order form (Format : see Kit Admin / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.2 Additional documents / Order form relieur fasteneur ) Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 47 / 84 4 - MONTHLY VERIFICATIONS OF CASH STOCKS AND BANK ACCOUNTS (bases and capital)

4.1 Monthly cash count

4.1.1 Rules

INITIALLY  The cashbooks must be up to date before the cash count takes place.  Cash advances must: - be balanced at the end of June and the end of December, - be reduced to a minimum at the end of all other months.

MONTHLY CASH COUNT  To complete the monthly cash count:, the CASHIER must : - count the cash in the safe, - reconcile the physical amount with: - the balance in the cashbook - the balance in the advances book - check that the cash count result (balance of cashbook – (cash count + advances)) equals zero - sign the corresponding cash count (cash count) Format: see Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms /Cash book En Fr.xls/sheet “cash count”

 The monthly cash count document must not be signed unless the following has been verified: Balance of cashbook – (cash count + advances) = 0

 The monthly cash count must always be carried out on the last working day of the month.

The DOUBLE SIGNATURE is compulsory for the monthly cash count.

General rule: All the cash count for principal and secondary cash boxes at capital and at bases have to be double counted every end of month. To be valid, this control is done by two different persons and must have the signature of those two persons.

At base level:  For the secondary safes: In general, the control must be done by the person acting as a cashier; he/she signs the cash count. The immediate superior of the cashier must do a double count and countersigns the cash count.  For the main safe: The control must be done by the person directly in charge of the main safe of the base. The double check is done by the immediate superior, or by default, by the Head of Department of Finance of the mission or by any other person designated by this later one. This double check is officialised by a signature on the cash count.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 48 / 84 The second signatory must write down its full name and quality (name of the function) under the signature.

At capital level:  For the secondary safes: In general, the control must be done by the person acting as cashier; he/she signs the cash count. Its immediate superior must do a second counting of the cash box/safe and countersigns the cash count.  For the main safes: The control is done by the person in charge of the main safe. He/she signs the cash count. The double count is done by the responsible of the mission or the Country Director, or in case of the absence of the Country Director, by another Head of Department with power of attorney given by the Country Director. The second check is officialised by a signature on the cash count.

The second signatory must write down its name and quality (name of the function) under the signature.

The checking and verification tasks that each cashier must carry out at the end of each month are given in the cashier monthly checklist (check-list mensuelle du caissier ) Format: see Admin Kit / 2. Accountancy / 2.2 Verif.closure.reporting / 2.2.1 Standard forms /Cashier monthly checklist En Fr.xls

Using this check-list is optional, but highly recommended. However, the LOG-ADMIN at the base and the HOD FINANCE for the mission may impose its use if they feel this is necessary.

4.1.2 Cash discrepancies

4.1.2.1 Definition

A cash discrepancy is when the following equation does not result in zero:

A = balance of cashbook – (cash count + advances) = 0

When A is more than 0, there is a cash deficiency. It means that there is an exceptional loss.

When A is less than 0, there is a cash surplus. It means that there is an exceptional surplus.

4.1.2.2 Possible causes The possible reasons for a cash discrepancy could be the following (not an exhaustive list):

A) An error in the physical cash count: o when counting the money at the end of the month o during a transfer or a payment which took place during the month (example: during a bank withdrawal, safe to safe transfer, payment etc...)

B) A data entry mistake in the cash book:

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 49 / 84 o an error in the initial cashbook balance (EXCEL) brought forward at the beginning of the month38 o a cash transaction (expense, transfer...) has been overlooked and not entered in the cashbook o a cash transaction (expense, transfer...) has been mistakenly entered twice in the cash book o a typing error in the amount of an entry: . example: an invoice is paid for 123 USD / it is entered by mistake as 132 USD in the cashbook o a mistake in the amount entered in the cashbook . example: - an invoice is for 12.96 USD - it is rounded up and 13 USD is paid - it has been entered by mistake as 12.96 USD in the accounting book39 o confusion between income and expense . example: a payment is made for 200 USD / it is entered by mistake as an "income" of 200 USD in the cashbook

C) Mistake during the calculation of unbalanced advances at the end of the month

D) Mistake in the formula in EXCEL documents (cashbook and cash count particularly)

E) Loss or theft That has taken place during the month.

4.1.2.3 How to manage a cash discrepancy?

Step 1: check all possible causes to try to correct the discrepancy If a cash discrepancy is discovered during a cash count at the end of the month, it is recommended to first check all the possible causes for the discrepancy (See chapter above).

Step 2: prepare a report (if the discrepancy remains after step 1) See template link If, after checking all the possible causes the discrepancy remains, a 3-part report must be prepared: - Part 1: o written by the cashier o must provide the following information: . the amount of the cash discrepancy . everything that has been done to try and find the cause . possible measures to avoid this happening in the future - Part 2: o written by the line manager(s) o it must: . confirm the amount of the cash discrepancy . add any comments or extra information

- Part 3: o written by the HOD FINANCE o it must:

38 Month M’s initial balance must be equal to the end balance of month M-1 39 In this case it must be handled as follows: - write on the invoice: "13 USD paid" - record an expense of 13 USD in the cashbook Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 50 / 84 . confirm the amount of the cash discrepancy . add any comments or extra information

The 3-part report must then be sent by the HOD FINANCE to the REGIONAL FINANCE MANAGER (a copy must also be sent to the COUNTRY DIRECTOR).

NB: an original copy of the final report must be printed off. This will be used as the supporting document for the deficiency or surplus accounting entry (see below). This original must include: - the cashier's original signature under part 1, - the line manager(s)' original signature(s) under part 2, - the HOD FINANCE's original signature under part 3.

Step 3: entering an accounting entry for the deficiency or the surplus

Once this report has been completed, the cash discrepancy must be recorded in the book keeping:

- date: last day of the month - account code: o for a cash deficiency (exceptional loss): 650306 o for a cash surplus (exceptional gain): 700000 - contract code: Z1 - financial line code: 6503

The 3-part report (original) is used as the supporting document.

4.1.2.4 Disciplinary action

Anyone responsible for managing a cash stock is liable to ACF for the funds that are consigned to them.

If a cash discrepancy must occur and this is the result of personal negligence by the cashier, the decision may be taken to pursue disciplinary action against him/her.

For expatriates: disciplinary action may only be taken in the form of a procedure lead by the ACF- Paris HR Director, according to French law.

For national staff: disciplinary action may only be taken in the form of a process lead by the HOD FINANCE (or the HR MANAGER), according to the internal regulations and the law in application in the mission country.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 51 / 84 4.2 Monthly bank reconciliation

INITIALLY  The monthly bank account statement must be received from the bank before carrying out the reconciliation.  The bankbooks must be up to date before carrying out the reconciliation.

MONTHLY RECONCILIATION  To complete the monthly bank reconciliation: - enter the following data into the bank reconciliation form: - the bankbook balance - the bank statement balance - the list of cheques not yet debited ("not recorded in the bank statement") - the list of transactions not yet entered in the book keeping ("not recorded in the bank book") Format: see Admin Kit/2. Accountancy/2.1 Book.&support.doc/2.1.1 Standard forms /Bank book En Fr.xls/sheet “bank rec”

 The bank reconciliation must always be completed on the last working day of the month.

 For cheques not yet debited ("not recorded in the bank statement"), the person who is responsible for the bank account must make sure: - that the cheque stubs have been completed and correspond to the amount given in the bank reconciliation document, - that the cheques will be cashed during the following month.

SIGNATURE  The bank reconciliation document must be signed by the person who is responsible for the bank account.40

40 i.e. the person with the authorisation to carry out everyday transactions on the bank account. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 52 / 84 5 - VERIFICATIONS AND MONTHLY REPORTING FROM THE BASE TO THE CAPITAL

INTRODUCTION: The accountancy reporting process (from bases to the capital and then from the capital to the headquarters) breaks down into eight phases:

At each ACF base: Phase 1: the LOG-ADMIN carries out initial verifications Phase 2: the documents are sent from the base to the capital

In the capital: Phase 3: all accounting documents/files are verified Phase 4: the monthly accounting in SAGA is consolidated Phase 5: the monthly accounting in SAGA is finalised Phase 6: verifications take place before definitive month closure Phase 7: definitive closure Phase 8: the ‘accounting bundle’ is sent from the capital to the headquarters

5.1 Phase 1: Initial verifications carried out by the LOG-ADMIN

The LOG ADMIN is responsible41 for accurate book keeping at the base, and for verification and reporting from the base to the capital; this implies a series of verifications described below.

All these verifications appear in the base accountancy checklist (checklist d'envoi comptable mensuel de la base), which must be completed and signed by the LOG-ADMIN, and then sent to the capital together with the rest of the accounting documents and files. Format: see Admin Kit / 2. Accountancy / 2.2 Verif.closure.reporting / 2.2.1 Standard forms /Base accountancy checklist En Fr.xls

5.1.1 Phase 1A: verification of the accounting books

For each book, this verification involves:  Verifying that the accounting book exists  Verifying the quality of all accounting entries42, i.e. for each entry: Date Entry number Split entry number Description Secondary description (optional for safes / compulsory for bank accounts) Amount Account code Project code (empty for category 4 and 5 entries) Contract code (empty for category 4 and 5 entries (except 46700043)) Financial line code (empty for category 4 and 5 entries)

41 The LOG-ADMIN may delegate some of these verification tasks; he/she remains responsible however for ensuring information quality and the quality of all accounting documents. 42 For rules for entry into accounting books, see Chapter 2 Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 53 / 84 Third party code (compulsory for entries in categories 4 and 5, optional for entries in category 6)  Check that the accounting book (paper copy) is signed (compulsory)  Check that the accounting book (paper copy) is stamped (optional)

Format: Cashbook: Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Cash book En Fr.xls / sheet “cashbook” Bankbook: Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Bank book En Fr.xls / sheet “bankbook”

5.1.2 Phase 1B: verification of supporting documents For each book, this verification involves:  Checking that all supporting documents are present (each accounting entry must be accompanied by a supporting document)  Checking the quality of each supporting document44

5.1.3 Phase 1C: verification of cash counts This verification involves checking the following in the cash count:  Does the "non-justified advances" total correspond to the amount given in the advances book?45  Does the "end of month cashbook balance” in the cash count correspond to the actual end of month balance in the book?  Is the cash count signed? (compulsory)  Is the cash count stamped? (optional)  Where there has been a double signature has the second signatory also written his name in full?

Format: Cash count: See Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms /Cash book En Fr.xls /sheet “cash count”

5.1.4 Phase 1D: verification of bank reconciliations This verification involves checking the following in the bank reconciliation:  Does the amount given on the bank reconciliation form correspond to the final balance in the bankbook?  Does the amount given on the bank reconciliation form correspond to the final balance on the bank statement?  For cheques not yet debited ("not recorded in the bank statement"): - do the amounts and the dates given on the bank reconciliation form correspond to those on the cheque book stubs? - will the cheques be cashed during the following month. If not, what are the reasons?

Format: bank reconciliation: See Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms /Bank book En Fr.xls/sheet “bank rec”

Note: for book keeping bank charges, see Handbook ACCOUNTANCY chapter 3.2.1.3.

43 Account code 467000 = grant or reimbursement from a donor in the field/for these entries, the donor contract code must also be entered 447For information on the quality of supporting documents, see Chapter 3.2 45 If the amount is not zero, a copy of the advances books must be joined to the cash count. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 54 / 84 5.2 Phase 2: Sending the documents to the capital

The monthly reports that must be sent from the base to the capital are: - the paper documents, - the electronic documents.

5.2.1 Paper documents For each cashbook: - the cashbook (SAGA printout) signed and stamped (ORIGINAL) - the supporting documents filed by entry number (ORIGINALS) - the cash count signed and stamped (ORIGINAL) - the advances book46 (COPY)

For each bankbook: - the bankbook (SAGA printout) signed and stamped (ORIGINAL) - the supporting documents filed by entry number (ORIGINALS) - the bank reconciliation signed and stamped (ORIGINAL) - the bank statement (ORIGINAL)

All these documents must be checked off against the base accountancy checklist . Format: see Admin Kit / 2. Accountancy / 2.2 Verif.closure.reporting / 2.2.1 Standard forms /Base accountancy checklist En Fr.xls

Once this has been completed, the checklist must be signed and joined to the package to be sent to the capital.

5.2.2 Electronic documents - EXCEL version of the cashbooks and bankbooks - EXCEL version of the cash counts - EXCEL version of the bank reconciliations

Formats: Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Cash book En Fr.xls Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms / Bank book En Fr.xls

5.2.3 Deadline for sending monthly reporting All documents from month M must be sent to the capital at the latest by the 5th of month M+1.

5.2.4 Copies that must be kept at the base

Depending on the context, the volume of supporting documents and the physical conditions at the base, copies of all or some of the documents mentioned above can be kept at the base.

46 Only if advances remain unbalanced at the end of the month. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 55 / 84 6 - MONTHLY CLOSURE: VERIFICATIONS AND ACCOUNTING OPERATIONS IN THE CAPITAL

REMINDER (see: Chapter 5 – introduction): The accountancy reporting process (from bases to the capital and then from the capital to the headquarters) breaks down into eight phases:

At each ACF base: Phase 1: the LOG-ADMIN carries out initial verifications (described in previous chapter) Phase 2: the documents are sent from the base to the capital (described in previous chapter)

In the capital: Phase 3: all accounting documents/files are verified Phase 4: the monthly accounting in SAGA is consolidated Phase 5: the monthly accounting in SAGA is finalised Phase 6: verifications take place before definitive month closure Phase 7: definitive closure Phase 8: the ‘accounting bundle’ is sent from the capital to the headquarters

For phases 3 to 8, check-lists accompany each phase of the monthly closure process.

These check-lists are available in the file “ capital accountancy checklist En Fr.xls ”

Format: see Admin Kit / 2. Accountancy / 2.2 Verif.closure.reporting / 2.2.1 Standard forms /Capital accountancy checklist En Fr.xls

6.1 Phase 3: All accounting documents/files are verified

The HOD FINANCE is responsible47 for accurate book keeping across the mission (bases and capital), and for verification and reporting from the capital to the headquarters; this involves a series of different verifications:

6.1.1 Phase 3A: verification of books (bases and capital) For each book, this verification involves:  Check that the accounting book exists  Check that the accounting book (original print out) is signed (compulsory)  Check that the accounting book (original print out) is stamped (optional)

Formats: Cashbook: Admin Kit /2. Accountancy/2.1 Book.&support.doc/2.1.1 Standard forms / Cash book En Fr.xls /sheet “cashbook” Bankbook: Admin Kit/2. Accountancy /2.1 Book.&support.doc/2.1.1 Standard forms/ Bank book En Fr.xls/ sheet “bankbook”

47 He/she may delegate some of these verification tasks however he/she remains responsible overall for information quality and the quality of all accounting documents. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 56 / 84 6.1.2 Phase 3B: verification of accounting entries (bases and capital) For each book, this verification involves:  Verifying the quality of all accounting entries48, i.e. for each entry: Date Entry number Split entry number Description Secondary description (optional for safes / compulsory for bank accounts) Amount Account code Project code (empty for category 4 and 5 entries) Contract code (empty for category 4 and 5 entries (except 46700049)) Financial line code (empty for category 4 and 5 entries) Third party code (compulsory for entries in categories 4 and 5, optional for entries in category 6)

6.1.3 Phase 3C: verification of supporting documents (bases and capital) For each book, this verification involves:  Checking that all supporting documents are present (each accounting entry must be accompanied by a supporting document)  Checking the quality of each supporting document50

6.1.4 Phase 3D: verification of cash counts (bases and capital) This verification involves checking the following in the cash count:  Does the "non-justified advances" total correspond to the amount given in the advances book?51  Does the "end of month cashbook balance" in the cash count correspond to the actual end of month balance in the book?  Is the cash count signed? (compulsory)  Is the cash count stamped? (optional)  Where there has been a double signature has the second signatory also written his name in full?

Format: Cash count: See Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms /Cash book En Fr.xls /sheet “cash count”

48 For rules for entry into accounting books, see chapter 2 49 Contract code 467000 = grant of reimbursement from donor in the field / for entries with this account code, the donor contract code must also be entered 50 For information on the quality of supporting documents, see Chapter 3.2 51 If the amount is zero, a copy of the advances book must be joined to the cash count. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 57 / 84 6.1.5 Phase 3E: verification of bank reconciliations (bases and capital)

This verification involves checking the following in the bank reconciliation:  Does the amount given on the bank reconciliation form correspond to the final balance in the bankbook?  Does the amount given on the bank reconciliation form correspond to the final balance on the bank statement?  For cheques not yet debited (“not recorded in the bank statement"): - do the amounts and the dates given on the bank reconciliation form correspond to those on the cheque book stubs? (capital only) - will the cheques be cashed during the following month. If not, what are the reasons?

Format: bank reconciliation: See Admin Kit / 2. Accountancy / 2.1 Book.&support.doc/ 2.1.1 Standard forms /Bank book En Fr.xls /sheet "bank rec"

Note : for book keeping bank charges, see Handbook ACCOUNTANCY chapter 3.2.1.3.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 58 / 84 6.2 Phase 4: The monthly accounting in SAGA is consolidated

Once phase 3 described above has been completed, the EXCEL accounting books can be imported into SAGA (Phase 4A).

Once these imports are complete, a verification of all accounting book entries must follow (Phase 4B).

6.2.1 Phase 4A: Import of accounting books into SAGA

The EXCEL accounting books can only be imported into SAGA once the series of verifications in phase 3 described in chapter 6.1 have been carried out.

The import procedure is described in the SAGA manual – Chapter F – Paragraph 1.

6.2.2 Phase 4B: verification of accounting entries (bases and capital)

This verification is done using the SAGA selector. For each book, it involves:  Verifying the quality of all accounting entries52, i.e. for each entry: Date Entry number Split entry number Description Secondary description (optional for safes / compulsory for bank accounts) Amount Account code Project code (empty for category 4 and 5 entries) Contract code (empty for category 4 and 5 entries (except 46700053)) Financial line code (empty for category 4 and 5 entries) Third party code (compulsory for entries in categories 4 and 5, optional for entries in category 6)

52 For rules for entry into accounting books, see chapter 2 53 Contract code 467000 = grant of reimbursement from donor in the field / for entries with this account code, the donor contract code must also be entered Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 59 / 84 6.3 Phase 5: The monthly accounting in SAGA is finalised

6.3.1 Enter costs recharged to donors (“lumpsum books")

6.3.1.1 Phase 5A: For the expatriates

6.3.1.1.1 How to calculate Average Monthly Cost: AMC (CMM in French: Coût Moyen Mensuel) for the 1st six-month period of year N?

Donors finance expatriates based on an Average Monthly Cost (AMC)54.

For the first six-month period of year N, the Average Monthly Cost is determined in two stages:

1) Stage 1: whilst the annual budget for year N is being drawn up (in November/December of year N- 1), the HOD FINANCE calculates a forecasted average monthly cost based on the expatriate financing plan. Format: See Admin Kit / 3. Budget /3.2 Annual bud & fin.plans / 3.2.1 Example BI 2011\ XXPlanFinExpat2010.xls

The calculation breaks down as follows: - Headquarter costs (codes 6500A to 6500E: salaries, allowances and charges...) based on the amounts paid in year N-255 - Field costs(codes 6500F to 6500P): forecasted amount for year N

2) Stage 2: these figures are then approved by the REGIONAL FINANCE MANAGER, and then rounded up/down (to the nearest 50 euro). The result is the AMC-salaried staff and AMC-volunteer applicable for the first 6-month period of year N.

6.3.1.1.2 How to calculate AMC (Average Monthly Cost) for the second six-month period of year N ?

The AMC may be revised during the year. The revised amount is determined in two stages:

1) Stage 1: whilst the annual budget for year N is being revised (in May/June of year N), the HOD FINANCE calculates a provisional average monthly cost based on the expatriate financing plan. Format: See Admin Kit / 3. Budget /3.2 Annual bud & fin.plans / 3.2.1 Example BI 2011\ XXPlanFinExpat2010.xls

The calculation breaks down as follows: - Headquarter costs(codes 6500A to 6500E: salaries, allowances and charges...): amount spent in year N-156 - Field costs(codes 6500F to 6500P): revised forecasted amount for year N

2) Stage 2: these figures are then approved by the REGIONAL FINANCE MANAGER, and then rounded up/down (to the nearest 50 euro).

54 Mistakenly called a “lumpsum” 55 This amount must be approved and supplied by the DEPUTY FINANCE MANAGER 56 This amount must be approved and supplied by the DEPUTY FINANCE MANAGER

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 60 / 84 The result is the AMC-salaried staff and AMC-volunteer applicable for the second six-month period of year N. The average monthly costs (AMC) in €uros have to be converted in the currency of the contract with the exchange rate of January for the 1 st semester and the exchange rate of July for the 2 nd semester. This method has to be applied from January 2011.

6.3.1.1.3 AMC-Salaried staff and AMC-volunteer

For each mission, we separate: Average Monthly Cost (AMC) for salaried expatriates Average Monthly Cost (AMC) for volunteer expatriates (therefore non-salaried)

BEWARE ! For all the expatriates coming from other ACF Headquarters (Madrid, New York, London and Montreal), the Average Monthly Cost (AMC) charged to a donor is the same as for ACF- Paris salaried staffs.

6.3.1.1.4 Average Monthly Cost (AMC) details

The following charges are included in the AMC calculation:

a) Salaries or expenses: including employee salaries, non-salaried staff allowances and other components of the remuneration. b) Taxes: including taxes paid by ACF for expatriate staff according to the mission’s legislation c) Social charges and insurance: including charges and insurance related to salaried expatriate staff and volunteer expatriate staff. d) International transport i.e. Return ticket to the programme location: includes transport from the headquarter location to the programme country. e) Pre and post travel: includes the expatriate’s transport to the headquarters with a mode of transport reimbursed by ACF and their transport to the location they are assigned to. f) Visa: Includes transit visas, the first entry visa into the country as well as any renewals that may be necessary. g) Airport taxes: includes airport taxes for the outward and return international flights as well as local travel that may be required for operational reasons. h) Travel expenses: includes travel expenses other than transit visas. i) Travel for briefing/debriefing: includes expenses related to travel required for briefings and debriefings in programme country and elsewhere. j) Accommodation: includes house rent and any related charges (water, electricity, generator, etc.), hotels, domestic staff, security staff, insurance, household equipment, building/renovation work and household cleaning materials. Only rent for the reference period will be taken into consideration. k) Per diem: includes the sum allocated to an expatriate in the field for his/her everyday expenses. l) Food and/or allocations: includes food and drinks provided for expatriates in the field. m) “Break” allowance and other allowances (cold weather allowance, child allowance, charges linked to a partner when the expatriate holds a “couple” status...) n) Others: includes, for example, vaccinations required before leaving for the field, local driving licences and work permit when these are necessary, etc.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 61 / 84 6.3.1.1.5 Rules for expatriate charging

The “expatriate parameters” in SAGA must be entered respecting the charging rules given in the 20110108 Charging rules Xpat.xls table.

Document: see Admin Kit / 2. Accountancy / 2.2 Verif.Closure.reporting / 2.2.2 Additional documents /20110108 Charging rules Xpat.xls

6.3.1.1.6 Procedure for entering expatriate information into SAGA

a) Preceding step: the expatriate presence list is sent (from AGRESSO)

Each month, the MISSION ACCOUNTANT at the headquarters sends the expatriate presence list to the mission.

This list is extracted from AGRESSO and gives a series of information about the expatriates present in the mission at that time.

Example: expatriate presence list from the North Caucasus mission (CS) – July 2007

Column A = Ser /miss Country code Example: CS as in Caucasus

Column B = Restyp indicates the expatriate’s status P: Paris salaried staff V: Paris volunteer S: Emergency Pool (Paris) salaried staff L: London expatriate M: Madrid expatriate N: New York expatriate C: Canada (Montreal) expatriate

Column C = ResID Expatriate’s identification number in AGRESSO

Column D = ResID (T) Expatriate’s first name and surname

Column E = Functionindicates what the expatriate’s current “presence” in the mission is: BRIEF : briefing BUSY : working in the mission DEBRIEF : debriefing SICK : ill EVAC : evacuated TRAI : in training VAC : on holiday

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 62 / 84 Column F = Project positions indicates the expatriate’s position Examples: ADMIN Administrator FIEDLOG Logistician FS AGRI FS Agronomist FS COOR FS Coordinator HEADMISS COUNTRY DIRECTOR LOGADMIN Logistician Administrator LOGCOORD Logistical Coordinator NURSENUT Nurse Nutritionist WSCOORD Water and Sanitation Coordinator WSOFFIC Water and Sanitation officer

Column G = Project “Contract code” from the mission’s Structure budget defined in AGRESSO Example: CSZ1L

Column H = Project(T) Indicates the name of the mission’s Structure budget Example: Caucasus structure 2007

Column I = Date from Indicates the period’s start date

Column J = Date to Indicates the period’s provisional end date NB: for an expatriate working in the mission, the “date to” corresponds to the end of his/her contract. This information is updated when the expatriate leaves their mission.

Column K =Dos/camp “Project code” defined in AGRESSO NB: this is automatically a “coordination” code ‘(i.e. ending in C01) Example: CSMC01

Column L =Dos/camp(T) Name of coordination programme Example: Moscow coordination

b) Phase 5A1: The data is entered into SAGA parameters

The human resources/expatriate parameters in SAGA must be entered in accordance with the expatriate presence list (AGRESSO) - following the instructions given in the SAGA Handbook - Chapter D - Paragraph 2.4.1 - respecting the cost and charging rules described in this chapter.

c) Phases 5A2 : the data are transferred from the “expat follow up” to the expatriate lumpsum book (LEXP book)

Caution ! Old procedure SAGA 4-10 : see SAGA handbook Chapter E - Paragraph 2.5.1 New procedure SAGA 4-11-26 : NOT DEVELOPPED

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 63 / 84 6.3.1.2 Phase 5B: For equipment

6.3.1.2.1 Fundamental principles of depreciation

Certain equipment may be re-charged to a donor based on its depreciable amount over a 12 to 36 month period. This may concern: - vehicles (including motorbikes) - communication equipment - technical equipments

IMPORTANT: depreciation does not apply to computers.

Value to immobilize: Equipment goods (new or second-hand) located on missions, acquired on Private Fund, and whose unit value exceeds or is equal to €2,000, are considered as an immobilization at their purchase cost.

Value to depreciate: The equipment value is amortized in EURO. If the equipment was purchased in a currency different than EURO, its value is converted into EURO, based on the exchange value of the month57 during which the purchase took place. For the exchange rate calculation, see chapter 6.3.6.

If both these criteria are met the HOD FINANCE must create a depreciation card .

Format: depreciation card: See Admin Kit / 2. Accountancy / 2.2 Verif.closure.reporting / 2.2.1 Standard forms / Depreciation card En Fr.xls

Equipment goods located on missions, which purchase is directly financed by donors, are directly recorded in the missions’ expense account. They are not recorded as immobilizations, as these goods are not property of ACF and must be returned at the end of the program according to each donor’s regulation.

6.3.1.2.2 Depreciation rules

Utilization Date: this is the date in which the equipment starts being used. Namely: - for vehicles: the date of the first registration date, indicated on the card registration document (carte grise), - for other equipment: the delivery date in the country, that is the release date from customs or the ACF internal delivery order, in the case of a delivery carried out by an expatriate

Amortization Duration: The amortization duration varies according to the equipment.

57 The weighted average rate of the local currency is the exchange rate of the currency in EURO. It is calculated every month according to the following formula: (B+C) X E ((B/A) + D) A = Rate WAR EURO/Local currency of the preceding month (month M-1) B = Initial balance (beginning of month M) of local currencies (Local Currency = LC) C = Total of income in “local currency” (Local Currency = LC) during month M D = Total of outcome in “exchange currency” (Exchange Currency = EC) during month M E = EURO rate/Exchange currency

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 64 / 84 Approxima te initial Economic life Amortizatio Category Item purchase span given by n duration value Logistics (Euro) Vehicle 4*4 30,000 36 36 Vehicle 2*4 15,000 36 36 Truck 60,000 60 60 Transportation Motorcycle 2,500 24 24 equipment Tuk Tuk 3,700 24 24

HF Base 3,000 24 24 HF Mobile 3,000 24 24 VHF Base 600 12 N/A VHF Mobile 500 12 N/A VHF 500 12 N/A Handset Telecommunicatio VHF 4,500 24 24 n equipment Repetitor Inmarsat 2,000 12 12 MiniM Iridium 1,500 12 N/A Thuraya 800 12 N/A BGAN 500 12 N/A VSAT 3,000 24 24 Laptop 1,200 12 N/A Computer 500 12 N/A Copy 2,000 12 12 Video and IT machine equipment Printer 300 12 N/A Projector 1,000 12 N/A Water and Drill 30,000 24 24 Sanitation Compressor 10,000 12 12

Bladder 1,000 12 N/A Submersible 1,200 12 N/A pump Motorpump 2,000 12 According to the model Kit Del 2,200 12 12 Agua Ground 4,200 12 12 water pumping test kit

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 65 / 84 Borehole 10,000 24 24 Test kit pumpset type Conductivity 700 12 N/A metre Resistivity 30,000 24 24 meter

Electronic 400 12 N/A Nutrition scales Generator 3,000 36 36

Solar panels 24 24

Other Rubberhall 12,000 12 12

Dispensary 900 12 N/A tent Quality 400 12 N/A Control kit

For any other equipment not included in this list and for which

Value Amortization value €2,000 ≤ goods ≤ €8,000 12 months € 8,000 < goods < 24 months €15,000 Goods ≥ €15,000 The HQ makes the decision according to information on the good’s economic life span.

For all goods acquired second-hand, the amortization duration is not different than it is for new equipment and starts on the date of their first use, based on the evidence given by the previous owners (e.g.: invoice, registration document). If this is not available, the amortization duration will be the one defined in the reference table, cut by 12 months.

The following elements must be taken into consideration in the depreciation charge: - the equipment’s value, - for vehicles: all the vehicle’s “fixed” parts (bull-bars, roof rack, spare tyre...) and all the sets of spare parts automatically delivered with the vehicle.

The following elements must not be taken into consideration in the depreciation charge: - freight and transport - customs charges - extra “spare-parts kits” ordered

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 66 / 84 6.3.1.2.3 Monthly procedure

a) Phase 5B1: Update the depreciation cards

At the end of each accounting month, the HOD FINANCE must carry out the following tasks: -update the existing depreciation cards (“financial line” column), -create depreciation cards for any equipment that has arrived in the previous month.

b) Phase 5B2: Update the monthly depreciation follow-up table

At the end of each accounting month, the monthly depreciations follow up table must be updated.

Format: depreciation card: See Admin Kit / 2. Accountancy / 2.2 Verif.closure.reporting / 2.2.1 Standard forms / Depreciation card En Fr.xls/sheet “follow-up”

c) Phase 5B3: entering the data into SAGA (LAMO book)

For information on how to enter the data into SAGA, see SAGA Handbook chapter E – Paragraph 2.5.2.

6.3.1.2.4 Supporting documents and archiving

A file must be kept (and updated each month if necessary) for each equipment to be depreciated; the file must contain the following: - the latest version of the depreciation card - a copy of the equipment’s purchase invoice - a copy of the equipment’s order form - a copy of the document that specifies the equipment’s “date of use”: a vehicle’s registration or licensing document, a customs certificate, a copy of delivery order (if the equipment was transported by an expatriate from the headquarters).

Depreciated equipment’s files must be kept together in the same folder and kept in the capital. Furthermore, an identical file must be kept up to date in the headquarters by the MISSION ACCOUNTANT there.

6.3.1.2.5 Managing ODs for equipment depreciation See SAGA handbook Chapter G - Paragraph 2.3.3.

6.3.2 Phase 5C: Entering provisions for donors (US government agencies only)

Certain donors require that a monthly “audit provision” be anticipated. This is the case for agencies that depend on the US government (donor codes: B1 to B5)

In this case, the monthly amount of the provision must be entered in SAGA in the LAMO book.

Provision amount: is defined together with the REGIONAL FINANCE MANAGER and the INSTITUTIONAL DONORS RELATIONS SERVICE (SRBI) MANAGER.

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 67 / 84 Account code: 6503AU

6.3.3 Entry into extra-accounting books

6.3.3.1 Phase 5D: “Paris expenses” (EDPA book)

6.3.3.1.1 General case As mentioned in Handbook CASH MANAGEMENT chapter 4.3 some payments are made from headquarters on the mission's behalf; these are mostly expatriate salaries and allowances, visas, plane tickets, goods and materials purchased by 'SAE'. (Service Achat Expédition = Purchasing and Dispatch Department).

All these expenses are entered into the headquarters IT accounting system (AGRESSO).

SAGA allows this data from the headquarters to be imported into the mission’s book keeping: this enables the mission to have a global vision of costs, particularly for budget monitoring purposes.

Expenses incurred by the headquarters must be imported each month following the procedure below:

1)between the 1st and the 5th of the month: the MISSION ACCOUNTANT in the headquarters sends the import file in TXT format (extracted from AGRESSO) to the mission.

2) the TXT format import file is imported into the EDPA book in SAGA as described in the SAGA Handbook Chapter F – Paragraph 2.

6.3.3.1.2 ODs on EDPA book

If an OD is required on an EDPA book entry, it may be either: - an automatic OD (see SAGA Handbook Chapter G – Paragraph 2.2)  note, if this is the case, the EDPA book must imperatively have been closed definitively,

- or a manual OD (See SAGA handbook Chapter G - Paragraph 2.3 )

6.3.3.2 Phase 5 E: “Other missions’ expenses” (EDAM book)

6.3.3.2.1 General case As mentioned in Handbook CASH MANAGEMENT chapter 4.4 certain purchases may be incurred by mission A on behalf of mission B.

In this case, the purchases must be entered according to the procedure described in the SAGA Handbook Chapter E – Paragraph 2.4.2

See also: Third party codes for INTERMISSION expenses: see Handbook ACCOUNT. Chapter 2.4.3.2.3.5 Supporting docs for INTERMISSION expenses: see Handbook ACCOUNTANCY Chapter 3.2.2.6 Third party codes for INTERCO expenses:see Handbook ACCOUNTANCY Chapter 2.4.3.2.2.2 Supporting docs for INTERCO expenses: see Handbook ACCOUNTANCY Chapter 3.2.3.6 Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 68 / 84 6.3.3.2.2 ODs on EDAM book

If an OD is required on an entry in the EDAM book, it will always be a manual OD (see SAGA Handbook Chapter G – Paragraph 2.3 ).

6.3.3.3 Phase 5F: Valorisation (EVAL book)

REMINDER ( Handbook 03 - chapter 2.1.3) : « All in kind donation value above 5000 Euro have to be the entered in the accountancy. »

For each in kind donation above 5000 Euro, the valorised amount must be entered in debit on the accounting category 8.

Example : ACF receives a donation of 10 tons of cereals from WFP (World Food Program) valorised to 10 000 USD. The following entry must be entered in the EVAL book :

Date Description Credit Debit Account.code Contract Ligne Fin. 15/01 Donation WFP 10 tons cereals ___ 10 000 USD 861500 D4A VA00

Concerning les valorisations, also refer to : . Note dated 14/12/2009 valorisation of in kind donations : See Admin Kit / 2. Accountancy / 2.2 Verif.closure.reporting / In kind donation procedure En.doc . Bookkeeping : Handbook ACCOUNTANCY – chapter 2.1.3 . Contracts codification: Handbook ACCOUNTANCY – chapter 2.4.2.2.5 . Financial lines codification : Handbook ACCOUNTANCY – chapter 2.4.2.3.3 . Supporting documents : Handbook ACCOUNTANCY – chapter 3.2.4 . Entry in SAGA : SAGA User book chapter E paragraph 2.4.1 . Log Kit V.3

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6.3.3.4.1 General case Certain expenses can be incur by the mission and paid by the headquarters. In this case, each expense must be recorded and splited in the EDMI book as following:

- in credit : - amount of the invoice paid by the headquarters - account code : 586500 - third party code : country code of the mission (example for Sierra Leone : SL) - in debit : - amount of the invoice paid by the headquarters - account code category 6

For this type of expenses, refer to: General case: Handbook CASH MANAGEMENT Chapter 4.3.2 Third party code: Handbook ACCOUTANCY Chapter 2.4.3.2.3.6 Supporting documents: Handbook ACCOUTANCY Chapter 3.2.2.7

6.3.3.4.2 OD on EDMI book

If an OD is required on an entry in the EDMI book, it will always be a manual OD (see SAGA Handbook Chapter G – Paragraph 2.3).

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NB: books codification: EP01, EP02 etc.

Expenses can be incurred and paid by a partner. Concerning partnership, see Handbook PARTNERSHIP En.doc.

When ACF makes transfers to a partner, movements have to be entered in SAGA as following:  When ACF makes a transfer to a partner, enter the amount in the cashbook or bankbook : (i.e. : BAB01CFA) : - In debit: - amount of the transfer - account code : 460 004 - third party code : supplier code corresponding to the partner

 When the partner gives back the invoices back to ACF, enter the following amounts in the extra- accounting book (i.e. : EP01) : - In credit: - total amount of all invoices given by the partner - account code : 460 004 - third party code : supplier code corresponding to the partner - In debit: - one entry per invoice ; each entry must mention : - the amount of the invoice - account code category 6 Recommendation: import the expenses of the partner, at least at each biannual closure but preferably every month. Verification: check that extra-accounting book (i.e. EP01, EP02…) final balance is equal to zero.

For this type of expenses, refer to: General case: Handbook PARTNERSHIP Chapter 4.3 Third party code: Handbook ACCOUNTANCY Chapter 2.4.3.2.3.4

6.3.4 Entry into simulation books (committed expenses)

6.3.4.1 Phase 5G: “Paris committed expenses” (OEPA book)

See SAGA Handbook - Chapter F - Paragraph 13.

The headquarters may commit to expenditure on the mission’s behalf, i.e. an order has been made but the invoice has not yet been paid and included in the accounts.

All these “committed expenses” are entered into the headquarters IT accounting system (AGRESSO).

Committed expenses incurred by the headquarters must be imported each month following the procedure below:

1)between the 1st and the 5th of the month: the MISSION ACCOUNTANT in the headquarters sends the import file in TXT format (extracted from AGRESSO) to the mission.

2) the TXT format import file is imported into the OEPA book in SAGA as described in the SAGA Handbook Chapter F – Paragraph 3.

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See SAGA Handbook - Chapter E - Paragraph 2.6.2.

6.3.5 Matching and checking

6.3.5.1 Phase 5I: Matching

See SAGA Handbook - Chapter H - Paragraph 1.

6.3.5.2 Phase 5J: Checking

See SAGA Handbook - Chapter H - Paragraph 2.

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6.3.6.1 Phase 5K1: “Strong” currencies

The following currencies are considered to be “strong” currencies (as opposed to local currencies):

Euro EUR Swiss franc CHF Danish krone DKK Pound sterling GBP Japanese yen JPY American dollar USD Swedish krone SEK Australian dollar AUD Canadian dollar CAD

At the beginning of each month, the MISSION ACCOUNTANT in the headquarters transmits the strong currency exchange rates to be entered into SAGA to their mission countries. The procedure is described in the SAGA Handbook – Chapter D – Paragraph 2.6

A strong currency’s monthly rate must be entered into SAGA if: - the month’s book keeping includes one or more entries in this currency, - one or more current donor contracts’ parameters are in this currency.

Link to the Bank de France site: http://www.banque-france.fr/economie-et- statistiques/changes-et-taux/les-taux-de-change-salle-des-marches/parites-moyenne- mensuelle.html

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6.3.6.2.1 Authorised and prohibited currency exchange operations

 Only currency exchange from a strong currency to a local currency is permitted in a mission. Reminder Handbook CASH MANAGEMENT – Chapter 3.2

6.3.6.2.2 Initial definitions

Local currency 1 = LC1 The local currency is, in general, the national currency in the mission country. It is designated as “local currency 1” (LC1)

Other local currencies (2,3 etc...) Other local currencies are sometimes also used by the mission; these are generally currencies from neighbouring countries. They are designated as follows: Local currency 2 = LC2 Local currency 3 = LC3 Etc...

Exchange Currency = EC The Exchange currency is the currency the mission uses the most often to carry out currency exchange operations. It must be a strong currency: the American dollar (USD) or the EURO (EUR).

6.3.6.2.3 Formula for calculating the Average Weighted Rate (TMP rate)

6.3.6.2.3.1 Formula The average weighted rate of the local currency is its exchange rate with the EURO. Each month it is calculated using the following formula:

(B+C) X E ((B/A) + D)

A = TMP rate EURO/local currency of the previous month (month M-1) B = initial balance (beginning of month M) of local currencies (LC) C = Total entries of “local currency” (LC) during the month M D = Total outgoings in “exchange currency” (EC) during the month M E = rate EURO/Exchange currency

Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 74 / 84 6.3.6.2.3.2 TMP calculation sheet At the end of each month, the average weighted rate must be calculated for each local currency used by the mission and entered into SAGA following the procedure described in SAGA Handbook Chapter D – Paragraph 2.6

The calculation must be made using the TMP calculation sheet

Format: TMP calculation sheet: See Admin Kit / 2. Accountancy / 2.2 Verif.closure.reporting / 2.2.1 Standard forms / TMP calculation En Fr.xls/sheet “calculation”

6.3.6.2.3.3 Method

The information required for the calculation can be sourced from SAGA as follows:

A = TMP rate EURO/local currency of the previous month (month M-1) This information must be in the TMP calculation sheet from the previous month.

B = initial balance (beginning of month M) of local currencies (LC) These are the amounts of local currencies in the mission’s cash stocks and bank accounts at the beginning of the month. This information can be found: - either in the report: accounting books balance by currency (see Manuel SAGA – Chapter I – Paragraph 1.2.D / Balance report by currency by book - or by manually adding up the initial balances of safes and bank accounts for a given local currency.

C = Total entries of “local currency” (LC) during the month M 58 This information appears in the balance transfers report (account 585200) generated by SAGA (see Manuel SAGA - Chapter I - Paragraph 1.2.C)

D = Total outgoings in “exchange currency” (EC) during the month M This information appears in the balance transfers report (account 585200) generated by SAGA (see Manuel SAGA - Chapter I - Paragraph 1.2.C)

E = rate EURO/Exchange currency This is information is supplied at the beginning of each month by the headquarters with the other strong exchange rates (see Chapter 6.3.6.1 above.)

The rate corresponds to the average monthly rate of the previous month provided by the Bank of France.

6.3.6.2.3.4 Entering the TMP into SAGA The TMP (average weighted rate) of each local currency must be entered into SAGA following the procedure given in the SAGA Handbook – Chapter D – Paragraph 2.6

58 Currency exchange operations from local currency to strong currency are not permitted; however, if this kind of operation does happen by mistake or in an exceptional case, the operation must not be taken into consideration in the TMP calculation. Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 75 / 84 6.3.6.3 Phase 5K3: Donor exchange rates

Certain donors impose their own exchange rates.

In this case, the exchange rates are calculated and supplied (or published on the internet) by the donors.

These exchange rates relate to strong currencies and local currencies. They must be entered in SAGA following the procedure described in the SAGA handbook Chapter D Paragraph 2.7

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Once phase 5 is completed a series of verifications must be carried out before the definitive monthly closure of SAGA.

A detailed list of the phase 6 verifications appears in the Capital accountancy checklist En Fr.xls . Format: See Admin Kit / 2. Accountancy / 2.2 Verif.closure.reporting / 2.2.1 Standard forms / Capital accountancy checklist En Fr.xls / sheet “phase6”

This list must be completed, then dated and signed by the HOD FINANCE. It must be joined to the accounting bundle (see Chapter 7.1).

All these verifications require a series of operations in SAGA that are described in the SAGA Handbook – Chapter J – Paragraph 1

6.5 Phase 7: Definitive monthly closure

The accounting month can be definitively closed once the preceding phases have been completed.

For information on the procedure for closure in SAGA, see SAGA Handbook chapter J – Paragraph 1- 3

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Each month, the capital must feedback to the bases so that the bases can evaluate the quality of the book keeping they submitted (accounting entries, supporting documents, monthly closure files); this feedback aims to: - identify any mistakes or problems that may have occurred, - improve the quality of reporting for the following month.

The following tools (used by the ACF-Sudan mission in 2007) may be used:

- Report electronic accountancy Sudan 2007.xls This tool makes it possible to: o compare: . the EXCEL book sent by the base (initial version) . with the EXCEL book corrected in the capital before being imported into SAGA (final version) o quantify the number and nature of errors/corrections made in the capital

- Report paper accountancy Sudan 2007.xls This tool makes it possible to evaluate the quality of supporting documents against 17 criteria.

Documents: AdminKit/2. Accountancy/2.2 Verif.Closuure.reporting/2.2.2 Additional doc/Report electronic accountancy Sudan 2007.xls AdminKit/2. Accountancy/2.2 Verif.Closure.reporting/2.2.2 Additional doc/Report paper accountancy Sudan 2007.xls

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The capital’s monthly reporting involves sending the following documents to the headquarters: - the monthly accounting bundle (Chapter 7.1 ), - the electronic documents (Chapter 7.2 ).

7.1 The monthly accounting bundle

7.1.1 List of documents in the accounting bundle

The list of paper documents included in the accounting bundle appears in the “Capital accountancy checklist”. Format: See Admin Kit / 2. Accountancy / 2.2 Verif.closure.reporting / 2.2.1 Standard forms / Capital accountancy checklist En Fr.xls / sheet “8 bundle En”

Some of these documents may be generated directly using the “closing script” option in SAGA (see SAGA Handbook – Chapter J – Paragraph 1.4.1)

7.1.2 Comments

The HOD FINANCE may note any comments on the first page of the closure script generated by SAGA.

7.2 Electronic documents

The following documents must be sent to the headquarters: - preferably by email, - if this is not possible, on a disc or CD with the bundle.

 SAGA monthly closure file (ZIP file)  The TMP exchange rate calculation files (EXCEL)  Updated expatriate financing plan (EXCEL)  Equipment depreciation cards + depreciation follow up table (EXCEL)

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 All documents must be sent the headquarters by the 10th of the month M+1 at the latest.

If all the documents detailed above do not arrive at the headquarters by the 10th of the month M+1 at the latest, the consequences are as follows: - The MISSION ACCOUNTANTS in the headquarters are not able carry out the verification of their missions' accountancy, - The REGIONAL FINANCE MANAGERS are not able carry out the verification of their missions' budgets, - the budget monitoring (which must be transmitted to the coordination team) may contain errors, - financial reports for donors cannot be approved.

7.4 Documents to be kept in the capital

The following documents must be kept in the capital:  Copies of the cash count + copies of the advances books if necessary (for each safe)  Copies of bank reconciliations + copies of bank statements (for each bank)  signed EXCEL books (originals)

7.5 Verifications and feedback from the headquarters to the capital

Once the accounting bundle and the electronic documents have been received by the headquarters: - the MISSION ACCOUNTANT in the headquarters will carry out a series of accounting checks; he/she will feed-back to the capital; this feedback may require corrections to be made to the accounting or supplementary documents to be sent, - next the REGIONAL FINANCE MANAGER will carry out a series of budget checks; they will feed-back to the capital; this feedback may require corrections to the budgets.

Once this feedback has been given and any corrections made, the MISSION ACCOUNTANT in the headquarters will integrate the SAGA data into AGRESSO.

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For legal reasons, ACF headquarters must produce a settlement of accounts twice a year for audit: - on the 30th June - on the 31st December.

For the June closure, missions must respect the following rules (as well as those concerning the usual monthly closure):

 Cash advances: Advances must be balanced at the end of June (see: Handbook CASH MANAGEMENT – Chapter 3.8).

 Double-signature on cash counts: It is compulsory for the cash counts to be done by two people. The cash counts must be signed by two people: - at the bases (main safe and secondary safe): by the LOG-ADMIN and his/her assistant - in the capital: - main safe by the HOD FINANCE and the COUNTRY DIRECTOR - secondary safe by the HOD FINANCE and his/her assistant

 Category 4 entries: All category 4 (advances to be repaid in the field) entries must be examined. Among them: - entries that will not be repaid must: - be entered as a loss with the REGIONAL FINANCE MANAGER’s approval - be matched in SAGA -for entries that will be repaid: a copy of the supporting document for each entry not balanced by 30th June must be sent the headquarters with the accounting bundle.

 Management of bank accounts: For all the bank accounts in the mission the HOD FINANCE must: - ensure that all non-used accounts are closed, - ensure that the amounts of any "dormant” accounts are transferred into the bank account in regular use, - ensure that an official letter from the bank confirming the account closure has been received 59 by ACF , - ensure that a copy of this letter has been given to the REGIONAL FINANCE MANAGER.

 Evaluation of financial risks: The HOD FINANCE must review and evaluate the mission’s financial risks. Specifically, these may relate to:

59 For information on the procedure for closing a bank account, see Admin Kit - Handbook CASH MANAGEMENT Chapter 2.1.8 Action contre la Faim - France Admin Kit / 2. Accountancy / Handbook ACCOUNTANCY En.doc Version 8th July 2010 81 / 84 - any litigation or court cases in progress, - a grant expected from a local donor, - end of contract bonuses due to employees at a base that may close in the near future, - a reimbursement expected from a supplier (reimbursement of an advance for a non-fulfilled order).

The amount linked to these risks must: - be evaluated and documented accurately by the HOD FINANCE, - be transmitted to the FINANCIAL CONTROLLER who will approve it and transmit it to the FINANCIAL CONTROL DEPUTY MANAGER in case there is a need for a potential risk provision.

Furthermore, the settlement of accounts at the end of June also implies a series of verifications and operations carried out by the headquarters (not covered in this handbook).

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For legal reasons, ACF headquarters must produce a settlement of accounts twice a year for audit: - on the 30th June - on the 31st December.

9.1 Rules

During the December closure, the mission must respect the following rules:

 All the rules that apply to the normal monthly closures (see chapter 6) above apply to the annual closure at the end of December.

 All the rules that apply to the six-monthly closure at the end of June (see chapter 6 above) apply to the annual closure at the end of December.

 Evaluation of financial risks: As well as the financial risks mentioned in chapter 8, the HOD FINANCE must estimate the end of contract bonus amount for all national staff as it stands at 31st December of the current year.

Furthermore, the settlement of accounts at the end of December also implies a series of verifications and operations carried out by the headquarters (not covered in this handbook).

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After a series of checks carried out by the MISSION ACCOUNTANT in the headquarters and the REGIONAL FINANCE MANAGER, the accounting year may be definitively closed in SAGA.

This operation must be approved first by the MISSION ACCOUNTANT and the REGIONAL FINANCE MANAGER.

For information on the procedure for the annual closure in SAGA, see SAGA Handbook chapter J – Paragraph 2.

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