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MANAGEMENT of APOC FUNDS by the Notfs : Financial and Administrative Procedures

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MANAGEMENT of APOC FUNDS by the Notfs : Financial and Administrative Procedures MANAGEMENT OF APOC FUNDS BY THE NOTFs : Financial and Administrative Procedures CHAD SUDAN GUINEA N I N E B SIERRA A NIGERIA N ON LEONE A ETHIOPIA H O G CENTRAL AFRICAN LIBERIA ER REPUBLIC TOGO M A C EQUATORIAL GUINEA O DEM. REP. UGANDA G OF CONGO KENYA GABON N O RWANDA C BURUNDI TANZANIA MALAWI E ANGOLA U IQ B M A Z O M THE AFRICAN PROGRAMME FOR ONCHCERCIASIS CONTROL (APOC) 2004 MANAGEMENT OF APOC FUNDS BY THE NOTFS : FINANCIAL AND ADMINISTRATIVE PROCEDURES ACKNOWLEDGEMENTS The Management of The African Programme for Onchocerciasis Control (WHO/APOC) based in Ouagadougou, Burkina Faso gratefully acknowledges the Financial and Technical support provided by the Onchocerciasis Coordination Unit of the World Bank toward the completion of this manual. The Management also acknowledges the World Health Organization (WHO) who’s Imprest System of Accounting has been adopted in sections of this manual; and the input of the WHO/APOC Staff for their invaluable contribution and commitment to proper financial accountability and reporting. 2 In accordance with the provisions of the Memorandum for the African Programme for Onchocerciasis Control (APOC) signed by the Governments of the Participating Countries, the Donor Community as well as all partnering institutions, and within the specific framework of the institutional and administrative arrangements described in the different “Letters of Agreement”, the following procedures shall, henceforth, govern the financial and administrative management of funds made available to the National Onchocerciasis Task Forces (NOTFs) enabling them to successfully carry out their operational objectives . The “Letters of Agreement” for APOC projects should be made available to all Stakeholders. As the Project Accounting Officers/Administrative Assistants are responsible for tracking the approved budget included in the “Letter of Agreement”, a copy must always be provided to them to ensure timely preparation and submission of returns to the Management of APOC. 3 PREFACE This manual is designed for use as a reference guide on administrative and financial procedures for all the African Programme for Onchocerciasis Control (APOC) projects, and for training courses on the World Health Organization (WHO/APOC) Imprest System of Accounting. The manual, based on material progressively developed over the past several years by the World Health Organisation, is adapted to respond to specific needs of the African Programme for Onchocerciasis Control. This manual aims to present broad coverage of the WHO Imprest System of Accounting by describing the required techniques to be used by all APOC project accountants. The specific process to be followed to fulfil the accounting requirement of submitting the returns may vary from country to country and may also differ among APOC projects within a country due to the specificity of the Projects concerned The manual is designed to provide only the core material for the WHO Imprest System of Accounting and should be supplemented with specific instructions relating to the particular administrative and financial set-up of the country projects. The Management of APOC programme based in Ouagadougou, Burkina Faso will be the main source of additional materials and instructions where necessary. This includes specific guidelines on the use of this manual by the OCP Special Intervention Zones and other establishments such as Non-Governmental Development Organizations. The manual is divided into four Sections. • Section 1 provides an introduction to the Financial and Administrative set up of APOC and the Letter of Agreement. This section also presents key definitions that will be found when using the Imprest System of Accounting. • Section 2 focuses on the Accounting Guidelines developed for all APOC funded projects. This section presents the mechanism to be used in the management of funds by projects and mechanisms for monitoring transactions. • Section 3 provides the administrative guidelines and audit requirements that examine expenditure per budget line item and addresses the question of how to spend more wisely. It examines expenditure planning and the formulation of each budget line item including the utilisation of capital equipment. • Section 4 provides details on how to perform monthly closures to ensure timely submission of returns to APOC management. • Section 5 provides an overview of the financial reporting requirements for APOC projects. 4 TABLE OF CONTENTS SECTION 1 INTRODUCTION............................................................................................................................ 6 Basic information on the APOC Administrative and Financial Structure ............................ 6 Basic information on the Imprest Accounting System.......................................................... 7 Key definitions found in the Imprest Accounting System .................................................... 7 THE LETTER OF AGREEMENT ................................................................................................ 10 Purpose.................................................................................................................................. 10 Period covered....................................................................................................................... 10 Financial Agreements and Amounts ..................................................................................... 10 Reporting Requirements........................................................................................................ 11 Sample Letter of Agreement.................................................................................................. 12 Common Misinterpretations of the Letter of Agreement....................................................... 15 SECTION 2 ACCOUNTING GUIDELINES...................................................................................................... 16 THE IMPREST ACCOUNTING DOCUMENTS AND FORMS Imprest Voucher.................................................................................................................... 16 Cash book.............................................................................................................................. 18 Monthly Statement of Imprest Account................................................................................ 23 Budget Analysis Form........................................................................................................... 27 SECTION 3 ADMINISTRATION GUIDELINES AND AUDIT REQUIREMENTS .................................... 30 Utilisation of Capital Equipment .......................................................................................... 30 Motor Vehicles...................................................................................................................... 30 Bank Account ....................................................................................................................... 30 Petty Cash ............................................................................................................................ 31 Operating expenses .............................................................................................................. 31 Per diems............................................................................................................................... 31 Travel and Training............................................................................................................... 31 Supplies and stationery ......................................................................................................... 32 Telephone.............................................................................................................................. 32 SECTION 4 PERFORMING MONTHLY CLOSURES AND SUBMISSION OF TIMELY REPORTS ... 33 Preparing the Imprest Account Cash Book Verification of Petty cash Reconciliation of the Bank Account Preparing the Monthly Statement of Imprest Account Preparing the Budget Analysis Form Submission of Returns to APOC SECTION 5 FINANCIAL REPORTING REQUIREMENTS FOR APOC PROJECTS............................... 35 5 SECTION 1: INTRODUCTION BASIC INFORMATION ON THE APOC ADMINISTRATIVE AND FINANCIAL STRUCTURE Funds made available by Donors to the World Bank are channelled through the World Health Organisation (WHO) and the African Programme for Onchocerciasis Control (APOC) and made available to the Project bank account at the country level. In order for each project to meet all the requirements regarding financial obligations, it is important that the wider environment of financial decision making is understood. The following illustration provides an overview of the APOC Programme Financial Flows. 6 Governing the financial and administrative management of funds made available to the National Onchocerciasis Task Forces (NOTFs) is the Letter of Agreement (LOA) signed between WHO/APOC and the NOTF/MOH of the APOC participating country. The LOA spells out the institutional and administrative arrangements the NOTF needs to carry out to ensure that the projects operational objectives are met successfully. BASIC INFORMATION ON THE IMPREST ACCOUNTING SYSTEM Imprest is the advance given by WHO/APOC to the NOTF for expenses to be made during a given period (generally quarterly or semi-annually). All expenses made by using the imprest account should be justified monthly through the use of accounting documents. The WHO Imprest Accounting
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