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

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.

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.

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.

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

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.

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 System was developed in accordance with WHO imprest accounting procedures, as outlined in the WHO Manual, “Finance and Accounts: Imprest Accounts.” The WHO Imprest Accounting System is designed to perform all accounting tasks ranging from recording daily accounting transactions (Page 16 of this manual) to performing monthly closures (Page 32 of this manual).

KEY DEFINITIONS AND PRINCIPLE RULES FOUND IN THE WHO IMPREST ACCOUNTING SYSTEM

In order to harmonize the administrative and accounting practices, the following terms are mainly used in WHO/APOC documents in relation to the Imprest Accounting System.

1. Bank Account

In the execution of field operations, funds are made available to the NOTFs on the basis of the estimated expenditures contained in the budget and annexed to the Letters of Agreement. These funds represent WHO/APOC assets and are covered by the legal provisions of the WHO.

Principle rules and requirements for the Bank Account: a) The bank account at the country level should be operated jointly by two signatories whose specimen signatures should be deposited at the Project’s bank. The imprest is to be operated by cheque or through the petty cash. b) All debits and credits should be followed-up and cleared promptly. c) The account name notation should be as follows: • NOTF/ WHO-APOC • Name of Country d) A monthly bank statement is required and must be reconciled with the monthly statement of the imprest account.

2. Petty Cash

Petty Cash is the cash on hand or in the safe which is made available from the bank account to the project and is used to pay for small expenditures related to operating costs. The National Coordinator is accountable for the money in the Petty Cash. These funds are also covered by the legal provisions of WHO.

Principle rules and requirements for Petty Cash: a) The maximum amount allowable in the petty cash should be the local currency equivalent of USD 200. If the petty cash amount is more than USD 200 in local currency at the monthly closures, detailed justification must be provided explaining the amount recorded in the cash count certificate and the amount of advances provided to decentralized implementers of activities yet to be accounted for. b) Unauthorized expenditures should not be paid from the Petty Cash. This includes advances paid for per diem without proper authorization or justification. c) All large advances or payments to contractors should be made by cheque from the Bank Account and not through petty cash. It is not advisable to have a lot of cash in the safe except when paying per diem to participants of a meeting or paying top-ups at the end of each month. If not, the justification should be the amount of advances provided to decentralized implementers. d) A Cash Count Form/Certificate (see point 2.1) should be filled at the end of every month, and after approval, signed by the national coordinator. This form should be made available to the auditors or any supervisor if required.

2.1 The Cash-Count Form/Certificate (CCC) a) The cash count certificate is used to confirm the current amount available in petty cash at the end of each month. It is a list used to take stock of the available petty cash each month. b) The petty cash amount indicated on the cash count certificate must be shown in terms of bank notes and coins available. It is not advisable to keep your personal cash in the project safe, therefore ensure that the cash count conducted is for project petty cash only. c) The cash count certificate should always be cosigned by the coordinator and the accountant at the end of every month and it should reconcile with the amount indicated in the petty cash column of the cash book.

3. Imprest Account

As described earlier, the advance given by WHO/APOC to the NOTF for expenses to be made during a given period is called imprest. WHO/APOC approves and effects the replenishment of the imprest account.

Additional definitions, principles, rules and requirements

3.1 The Imprest Holder a) The National Coordinator is normally the Imprest Holder and is the person accountable to WHO/APOC and to his Government for the funds made available to the NOTFs by WHO/APOC.

3.2 The Imprest Voucher

The imprest voucher is a document accompanying all payments made and it describes each transaction in detail. a) Please noted that an Imprest Voucher should be used for each transaction (that is for each invoice or group of invoices settled). b) It is strictly forbidden to group invoices not related to the same transaction and/or the same budget line item together attached to one Imprest Voucher. c) All invoices attached to an Imprest voucher should relate to a transaction in only one currency.

3.3 The Imprest Account Cash Book

This is the accounting book prepared by WHO known as “WHO 412 FIN (ACT)” showing the details of all the expenditures in chronological order. a) Records are made in the Imprest Account Cash Book on the basis of the individual Imprest Vouchers.

3.4 The Monthly Statement of the Imprest Account

This statement shows the different balances obtained in the Imprest Account Cash Book and the status of the bank account as shown on the monthly bank statement. a) To fill the Monthly Statement of Imprest Account, one should have finished completing the Imprest account cash book and should have it in front of him.

THE LETTER OF AGREEMENT

The Letter of Agreement is the legal document signed between the Ministry of Health/the National Onchocerciasis Task Force (NOTF) and the World Health Organisation/African Programme for Onchocerciasis Control (APOC) for the purpose of developing the partnership toward the control of the onchocerciasis in the country.

PURPOSE a) The objective of this document is: (i) to define and clarify the financial procedures that the benefiting project should follow in order to justify the expenses incurred each month; (ii) to define the administrative procedures which govern the release of funds from the trust funds to the projects; (iii) to highlight the legal limitations of the project. b) The Letter of Agreement clearly specifies the financial arrangements (including actual budget and amount to be transferred to the project for field activities, capital equipment, and overhead) as well as other expenses to be paid by each of the partners. c) The Letter of Agreement also defines the work to be performed, the obligations of each of the partners including financial input, staff required during execution and the period covered by the Agreement. d) Audit arrangements are also an integral part of the Agreement.

Note:

The plan of work and the time line as defined in the approved Project proposal may be modified by mutual agreement of the parties taking into account the operating experience and needs of the Programme by use of “Implementation letters” issued by WHO/APOC.

PERIOD COVERED

The Letter of Agreement is a legal document that defines the period it covers. In the case of the APOC project, it always covers a period of 12 months.

FINANCIAL AGREEMENTS AND AMOUNTS a) The amount to be paid by WHO/APOC to the Institution is transferred in 2 or 3 installments. Each installment is called "Imprest" which is the advance given by WHO/APOC to the NOTFs for the different expenses to be made by the project implementers during a period. All expenses shall be justified on a monthly basis by a set of accounting documents. (see Page 16 on Imprest Accounting Guidelines). b) Based on the signed Letters of Agreement, a total amount of cash is provided by APOC from the “Trust Fund” to the NOTFs for expenses to be made during the period covered by the LOA. This amount is called the total amount of expenditure estimated by the agreement.

The Total Financial Obligation Important Note: The amount of expenditure called the “Total Financial Obligation” should be considered an estimate of the amount to be used for the payment of project activities during the (12-

month) period covered by the Letter of Agreement. The “Total Financial Obligation” is an estimate and not a full grant. c) Any unliquidated balance at the end of the 12 month period should be returned to APOC/WHO at the end of each project period. d) From the Total Financial Obligation:

• WHO/APOC retains a portion used for the purchase of Capital Equipment because of best prices obtained in the international markets by WHO.

• The NOTFs are not concerned with the management of the Capital Equipment portion of the total financial obligation. However, the NOTFs should request and obtain all items approved under Capital Equipment as soon as the Letters of Agreement are signed by both parties.

• Equipment that is not approved in the Budget attached to the LOA should not be purchased form the Imprest (with APOC funds) without approval from the Management of APOC.

• The amount referred to in the Letters of Agreement as "Remaining amounts paid to the Institution" is the portion of the Total Financial Obligation made available to the NOTFs for field activities.

• These “Remaining amounts paid to the Institution” needs to be used strictly during the period covered by the Letter of Agreement.

REPORTING REQUIREMENTS

A request for further funding/installment to a Project should be made when 80% of the previous advances have been spent.

The following reports should be submitted to APOC before the Project account can be replenished: i) The regular transmission at the end of each month of a copy of the bank statement, reconciled with a list of all cheques drawn on the account. ii) A statement reconciling expenditure already made to the various budget lines. iii) A semi-annual report indicating the activities carried out and the amount spent against each budget line (to be submitted 6 months after the first instalment has been received). The form to be completed for the semi-annual financial report is hereby attached on page 35. iv) An annual report after 12 months indicating the activities carried out and the amount spent against each budget line.

As stated in the Letters of Agreement, any unliquidated balance from the "Remaining amount ... paid to the Institution" shall be paid back to WHO/APOC at the end of the period covered by the Letters of Agreement or it could be used to reduce the instalments to be made in the subsequent year.

FOLLOWING IS A SAMPLE LETTER OF AGREEMENT

SAMPLE LETTER OF AGREEMENT

AFRICAN PROGRAMME FOR ONCHOCERCIASIS CONTROL 01 P.O. BOX 549 - Tel. (226) 34 29 60- 34 29 59- 34 29 53 - Telex 5241 BF - Fax (226) 34 28 75 2. Obligations of WHO/APOC OUAGADOUGOU 01- Burkina Faso 2.1. Total Financial Obligation

LETTER OF AGREEMENT The total financial obligation of WHO/APOC, under this Agreement is US dollars XXXX. The maximum obligation of APOC for any budget line item in this Agreement is the amount indicated in the approved budget line, and the total obligation may not exceed the sum of these budget lines.

Registry File: 08/181/642/xxxx National The amended and approved budget for (YEAR X), is attached herewith as Annex 1. Onchocerciasis Task Force (NOTF) 2.2. Capital Equipment Allotment No.: OU/ICP/CPC/504/AP/xxxxx Ministry of Health WHO/APOC will retain funds proposed for the purchase of Capital Equipment and make the purchases through its central purchasing system.

The equipment and supplies furnished by WHO under this agreement will be handed over to the Institution upon arrival at the port of entry in the country, against appropriate receipts. 1) Important The money approved PROPOSAL OF TECHNICAL SERVICES - LETTER OF AGREEMENT 2002 3. Contribution of the Institution under this Agreement For its part, the Institution, in agreement with its own Government, shall provide all the inputs should NOT be used COMMUNITY DIRECTED TREATMENT WITH IVERMECTIN (CDTI) / VECTOR ELIMINATION required from the Government, the NGDOs and other partners, including all the staff necessary for the PROJECT IN THE (NAME OF DISTRICT) IN (NAME OF COUNTRY) (YEAR) execution of the Project in accordance with this Agreement and as set forth in the Memorandum and in the outside the period stated approved Project proposal. here.

For the purpose of developing and establishing sustainable Community Directed Treatment with Ivermectin (CDTI) for the control of onchocerciasis in (NAME OF COUNTRY), 4. Period covered by this Agreement The World Health Organization's African Programme for Onchocerciasis Control, hereinafter 2) Note referred to as "WHO/APOC" on the one hand, This Agreement covers a period of 12 months from (MONTH X AND YEAR X) to (MONTH X AND YEAR X). This is the portion of

and

the budget to be The National Onchocerciasis Task Force, Ministry of Health/Uganda, hereinafter referred to as "the 5. Financial arrangements monitored by APOC Institution", on the other hand, 5.1. The total amount of expenditure estimated by this Agreement is XXXX US dollars. Of the Management. above, US$ XXXX will be retained and used by WHO/APOC for the purchase of Capital Equipment needed HAVE AGREED AS FOLLOWS for the performance of the Project activities and, if specified, for direct payment of the overheads according to the agreed standards of the Joint Action Forum.

5.2. From the remaining amounts of US$ XXXX, a first installment of US$ XXXX will be paid to 1. Work to be performed the Institution on signature of the Agreement by both parties, provided that all the other conditions precedent to disbursement have been met. Further to the Memorandum for the African Programme for Onchocerciasis Control (APOC), 5.3. The subsequent installment(s) will be paid on request from the Institution accompanied by a PHASE II (2002-2007) and the Phasing out Period (2008-2010) (the "Memorandum"), which was endorsed by statement reconciling expenditure already made to the various budget lines. A request for further funding for a the Government of (NAME OF COUNTRY), this Agreement is concluded for the purpose of developing and Project should be made when 80% of the previous advances have been spent. 3) Important establishing sustainable Community Directed Ivermectin Distribution Project in the (NAME OF DISTRICT) in the (COUNTRY). The payment of these replenishments will be subject to: All these conditions

The Project named “XXXXX" shall be carried out in accordance with the proposal submitted by the (a) The reception of the statement mentioned above; must be met before

NOTF of (COUNTRY) in (YEAR X), reviewed and approved by the Management of APOC. any replenishment (b) The regular transmission at the end of each month of a copy of the bank statement, The Project shall be undertaken in (REGION COVERED BY AGREEMENT) districts of of funds can be 4) Note (COUNTRY). approved. This is the portion of The plans of work and the time line as defined in the approved Project proposal may be modified by ….. the budget to be SAMPLEmonitored LETTER by OFproject AGREEMENT implementers.

The Programme Director

Attention: Budget and Finance Officer Signatories WHO/APOC Signatories Institution WHO/APOC

01 BP 549

Ouagadougou 01 1. 1. Name ...... Burk ina Faso Budget and Finan ce Officer/APOC TitleTitle ......

spent aagainstgainst each budget line. This report will be formally reviewed as a basis for extension of this Agreement ......

for a further period or the signing of a s ubsequent Agreement for further funding. The report should be forwarded to the following address: Signature Signature

The Programme Director

WHO/APOC Date DateDate 01 BP 549

Ouagadougou 01

Burkina Faso 2. Dr A.Sékétéli 2. Name ......

Please read Programme Director Title ...... section 5.4. The installments shall be paid to the Institution, through the special Nationa l Onchocerciasis Task Force Bank Account, opened exclusively for WHO/APOC funds to be used on the project...... to understand the limits of this 5.5. Any unliquidated balance at the end of the period covered byby the current Agreement shall be paid back to WHO/APOC by the Institution or if spe cifically agreed, deducted later on from the amount of agreement the sum WHO/APOC will pay in the framework of any possible subsequent Agreement. Signature Signature

6. Legal arrangements Date Date

It is understood that the work under this Agreement will be performed under the technical supervision of WHO/APOC but does not create any employer/employee relationship between WHO/APOC and the Institution. The Institution shall in that respect be solely responsible for the manner in which the work will be carried out.

WHO/APOC shall not be respo nsible for any loss, accident, damage or injury suffered by the Institution or any person claiming under it, arising during or as a result of the execution of this work or in any manner whatsoever.

Any dispute relating to the interpretation or execution o f tthishis Agreement shall, unless amicably settled, be subject to conciliation. In the event of failure of the latter, the dispute shall be settled by arbitration. The arbitration shall be conducted in accordance with the modalities to be agreed upon by the p arties or, in the absence of agreement, with the Uncitral Arbitration Rules. The parties shall accept the arbitral award as final.

If your Institution accepts this proposal, we should be grateful if you would see to the signing of all the four copies of t his Agreement by two persons authorized to sign on behalf of the Institution responsible for the execution of the work and return three copies to us.

SAMPLE LETTER OF AGREEMENT

Period XXXx Year YYYY BUDGET $1 = XX Local Currency

Each budget line Summary Budget item must be monitored strictly and not exceeded without authorization. S/N BUDGET LINE APOC MOH NGDO COMMUNITY TOTAL ITEM 1 Personnel XXXX

2. Supplies XXXX

3. Training XXXX

4. Education/ XXXX Mobilization 5. Travels XXXX

6. Communication XXXX

7. Consultant XXXX

8. Other Expenses XXXX

Total XXXX

%INPUT Y% Y% Y% Y% 100%

COMMON MISINTERPRETATIONS OF THE LETTER OF AGREEMENT

The project period

The project period stated in the Letter of Agreement should be observed strictly. All transactions charged to a particular budget should stop once the project period comes to an end.

Understanding the approved budget amount (Total financial obligation) and financial arrangements

The approved budget amount that will be due to the project during the project period is clearly stated in the Letter of Agreement.

This amount is to be tracked during the specific project period.

SECTION 2: IMPREST ACCOUNTING GUIDELINES

THE ACCOUNTING DOCUMENTS AND FORMS USED

Attention to detail is the key to good accountability. When using the Imprest System of Accounting, always ensure that all payments are posted immediately when expenditure is incurred.

Following are detailed descriptions of all the forms you will use to ensure proper accountability.

I. IMPREST VOUCHER

All payments made out of petty cash or the bank account must be fully described by an Imprest Voucher. The following is a model Imprest Voucher.

Tick one of the 4 boxes to Indicate the account(s) involved in each particular transaction, and the kind of transaction.

WHO/ Voucher No.: ____ Date: ______

CASH BANK

PAY RECEIPT

Payment to: ______

Cheque No.: ______

Description Budget Line Amount/ Name of Project Currency

In this column, In this column, indicate the In this column, provide Indicate the budget sound description. currency and line to be debited. amount as on the attached receipt.

Book Keeper Approved by Received by

Signature Signature Signature

HOW TO FILL THE IMPREST VOUCHER

To ensure the voucher is filled correctly, please provide all the following information as requested:

1. Voucher N° • The first entry for the month should always start at voucher N° 1. • All other numbers should be consecutive numbers. • It is advisable to start over again in the following month with Voucher N° 1 but those already numbering their vouchers from the first month of the project period to the last, maintain consistency.

2. Description of the Transaction • The 4 Boxes at the top of the Imprest Voucher page are named horizontally as cash/bank and vertically as pay/receipt. They are used to indicate if the expenditure is paid in Cash or by Cheque, or if replenishment is received in the Petty Cash (Safe) or in the NOTF/WHO-APOC Bank Account. • At least one of the 4 boxes should be filled as a first step in filling the Imprest Voucher. • During the replenishment of the Petty Cash (Safe) by a transfer from the Bank Account, two boxes are filled: The Bank Paid box and the Cash Received box. • During situations when the Administrative Assistant has to reverse Cash in Safe into the Bank Account, two boxes are filled: The Bank Received box and the Cash Paid box.

3. Project or Office • Write the title of the project - Country Name or State CDTI Project as written in the LOA.

4. Date • Write the date when the expenditure was incurred (the Voucher should be filled the same day of the transaction). • When Advances are given to zonal offices or for decentralized expenditures, always write the date that the Imprest Vouchers are raised.

5. Payment to • Write the name and full address of the supplier, or beneficiary of the amount disbursed.

6. Budget line • Write the name of the budget line to be charged for the amount disbursed.

7. Description/Details • Provide explanation of the transaction/expenditure indicating quantity, name and destination of the items bought.

8. Prepared By • Provide the name and signature of the accountant who filled the Imprest Voucher.

• Before the Imprest Voucher is forwarded to the Imprest Holder (national coordinator), all invoices and/or receipts should be attached to the voucher.

9. Approved By • Get the Imprest Holder (national coordinator) to sign the Voucher. This shows that he has cleared the expenditure and approved it before any record is made in the Cash Book. The signatory’s title should be printed on the payment voucher.

• No imprest voucher should be signed without evidence of payment (invoice or receipt).

II. THE IMPREST ACCOUNT CASH BOOK

The “Cash Book” is a book in which record is kept of all financial transactions (cash receipts and disbursements). It is a very important accounting document that captures all transactions made each day.

After the Imprest Vouchers are approved by the Imprest Holder, entries into the cashbook should be made daily and solely by the designated Accountant/Administrative Assistant. The same numbers recorded on the voucher are the same numbers recorded in the Cash Book by the Accountant/Administrative Assistant.

As a principle, all expenditures should be recorded promptly in the Imprest Account Cash Book.

Following is a model of the Imprest Account Cash Book.

Model of the Imprest Account Cash Book

WORLD HEALTH ORGANISATION ORGANISATION MONDIALE DE LA SANTE Page No. ……………………….. IMPREST ACCOUNT CASH BOOK Project or Office…………………………….. Currency…………………………

Particulars Bank Account Petty Cash Month Year

Obligation (Sticker No) /Allotment Totals from previous page or balance Voucher Date Cheque No. Received Paid Received Paid /Account number/Authorization from last month No. Record balance here Record balance here Record balance here Record balance here reference and date

Totals to bring forward to next page

Deduct total “paid” from total “received” D E COMPLETE THIS PORTION ONLY Balance to bring forward to next month A B IF LAST PAGE FOR THE MONTH

Adapted from WHO Imprest Account System Form WHO412FIN (Act) 8/92

HOW TO ENTER TRANSACTIONS IN THE CASH BOOK:

Step 1: Complete the title section Important: Provide the page number, project name, Begin by recording the balances from currency used, month and year. the previous page or last month. Important: Ensure you record the Budget Line Item being charged for each transaction In this column.

WORLD HEALTH ORGANISATION ORGANISATION MONDIALE DE LA SANTE Page No. ……………………….. IMPREST ACCOUNT CASH BOOK Project or Office…………………………….. Currency………………………… Particulars Bank Account Petty Cash Month Year Obligation (Sticker No) /Allotment Totals from previous page or balance Voucher Date Cheque No. Received Paid Received Paid /Account number/Authorization from last month No. reference and date

Totals to bring forward to next page

Deduct total “paid” from total “received” D E COMPLETE THIS PORTION ONLY Balance to bring forward to next month A B IF LAST PAGE FOR THE MONTH

Step 3: Compute the totals on the cash book page Provide data in the columns according to the Step 2: a) Compute the totals for each of the Bank Account and Petty heading indicated Cash columns. These are the ‘balances to bring forward to the For each transaction, provide the record date, balance from last next page’. month, cheque number, voucher number, bank account, petty cash, and obligation/sticker number. b) On the last cash book page of the month, Deduct total “paid” from total “received” for both Bank Account and Petty Cash to obtain ‘A’ and ‘B’.

Adapted from WHO Imprest Account System Form WHO412FIN (Act) 8/92 c) These are the balances to bring forward to the next month. 20

HOW TO ENTER TRANSACTIONS IN THE CASH BOOK:

3 Steps to Fill the Cash Book

Step 1: Complete the title section (page number, project name, currency used, month and year). Step 2: Provide data in the columns indicated (record date, balance from last month, cheque number, voucher number, bank account, petty cash, and obligation/sticker number). Step 3: Calculate the totals (Balance to bring forward to next page and the balance to bring forward to the next month).

Step by Step Explanation

1. Complete the title bar section • write down the name of the project or office using this imprest account (Country name or State CDTI Project), • write down the page number (1, 2, 3, etc.) and the currency used (USD, CHF, currency of the country of assignment, etc). Also, in few African countries, two currencies are used –for those cases, two cash books are used. • Write in the month and year in the space provided.

2. Input entries into the columns provided as follows a) Date – Record the date money was received or disbursed. Since cash book entries are made daily, the dates recorded here should be the same one of entry in the cash book.

b) Balance from last month/Totals from last page – This first entry should show the totals from the previous page or the “balances carried forward”. Each of the rows that follow describe each transaction in that month (e.g. ‘salary paid to Mr. ---‘or ‘electricity bill’).

c) Cheque No. – Record the serial number of the cheque used by the imprest holder to make a payment. Make sure that the cheque numbers are consecutive. All cheque numbers missing should be justified.

d) Voucher No. – Record the voucher number attached to each transaction to enter. The voucher numbers should be sequential.

e) Bank Account – There are two columns, for amounts received and for amounts paid. • In the received column - record any money credited to the bank account (replenishment transfers by WHO/APOC, cheques deposited, or transfers from petty cash) during that calendar month. • In the paid column - record any disbursements for the month (generally expenditures paid by cheque or replenishment of safe through a cheque).

At the end of the month, record bank charges noted after the bank statement has been issued.

f) Petty Cash – Has two columns similar to the Bank Account. Record any cash received to replenish the petty cash in the received column and record all the expenditures made in the cash in the paid column.

g) Obligation (sticker number)/Allotment etc. – This is a very important column. Each expenditure is charged to a budget line item on the projects budget. In this column record the budget line item associated with the recorded transaction. o For non expenditure transactions (those that do not constitute an outflow of project resources from Bank or Petty cash) leave the line in this column blank.

o Incoming funds: In some cases, incoming funds may be used to reduce the amount already charged to a specific budget line item. Record the budget line item in brackets. For example: when payment is made for the month’s telephone charges, the obligation/sticker number in the cash book will read “Communication” as this is a charge to the communication budget line item. If upon reviewing the bill it is discovered that staff members made personal call not related to the programme activities, they may be asked to pay back to the programme the amount already paid for their personal calls. This incoming fund (paid by the staff back to the project) will them be recorded in brackets as “ (communication) ” because it represents a credit to the ‘communication’ budget line item and is being used to reduce the amount already paid out of the communication budget line item. This also applies when reversing any cash book entries.

3. Calculate the totals to be brought forward • Totals to bring forward to next page – just add up all the amounts in the bank account and petty cash columns • Totals to bring forward to next month (lettered ‘A’ and ‘B’) – To obtain ‘A’ in the bank account column; subtract all the amounts ‘paid’ from all the amounts ‘received’. To obtain ‘B’ in the petty cash column; subtract all the amounts ‘paid’ from all the amounts ‘received’.

NOTE: How to record advances made from Bank Account and Petty Cash in the Cash Book

Only actual expenditures with supporting justification are recorded in the cash book. Therefore, an advance made out of the bank account is recorded in the cash book as a replenishment of the petty cash as it is justified by the bank statement. An advance made out of the petty cash is not recorded in the cash book. Actual expenditures associated with the advance are recorded provided they have supporting justification.

• Advances made out of the bank account; o should be recorded as a replenishment of the petty cash, o When actual expenditures are made out of the advanced money and are justified with receipts, the accountant should then record the amount as an expense made from the petty cash. o If the advanced amount was not spent in full, the remainder is simply deposited in the petty cash with no further record.

• Advances made out of the petty cash o No record is made in the cash book by the accountant at the time of the advance as it is not a justified actual expense. However, every time an advance is made, a separate record should be kept to monitor the amount of advance made and the amount paid back and associated justification of the spent money. o The separate record you keep to monitor the advance made from petty cash should have attached to it the document approving the advance. o The money spent with justification is then recorded in the cash book like any other expenditure. The balance from the advance is deposited in the petty cash with no further record. If the amount is very large, it is deposited in the bank account as transfer from petty cash to the bank.

III. MONTHLY STATEMENT OF IMPREST ACCOUNT

The Monthly Statement of Imprest Account is a statement that reconciles the Imprest Account Cash Book and the cash on hand (Bank Statement / petty cash) for each project Bank Account on a monthly basis.

Before preparation of the Monthly Statement of Imprest Account can take place at the end of the month, 1) the Imprest Account Cash Book must have been completed and 2) the bank statement obtained from the bank.

Following is a model of the Monthly Statement of Imprest Account.

WORLD HEALTH ORGANIZATION MONTHLY STATEMENT OF IMPREST ACCOUNT IMPREST HOLDER MONTH YEAR PROJECT/OFFICE CURRENCY Balance at the end of above month, as per Imprest Account Cash Book: Bank...... A Petty Cash...... + B TOTAL C

Total amounts paid out during the month: From the Bank Account...... D From Petty Cash...... + E SUB-TOTAL

Deduct: amounts received (except replenishments)...... _ Deduct: transfers from Bank to Petty Cash and vice-versa...... _ SUB-TOTAL

Temporary increase of the level of the account Amount increased or brought forward balance...... Deduct: expenditure (included in D&E) _ Balance on Hand: _ Deduct: if not needed anymore (if balance is to be used next month see H below)

AMOUNTS TO BE REPLENISHED THIS MONTH F (Quote this amount when requesting replenishment) Add: previous months replenishments not yet received ...... G Deduct: balance of temporary increase to be used next month ....….....H

AUTHORIZED LEVEL OF IMPREST ACCOUNT (C+F+G-H)

RECONCILIATION OF BANK BALANCE NAME OF BANK Balance per bank statement ( date...... ) I Deduct cheques issued but not paid by bank Date Number ...... …………………………. (If space insufficient, list items on a separate list) TOTAL J

Add: amounts banked, not yet credited by bank Date Details ...... ………...... ……………………………

K BANK BALANCE, PER IMPREST ACCOUNT CASH BOOK (I-J+K) (should equal item A above) PLACE DATE SIGNATURE

Adapted from WHO Imprest Account System Form WHO413RO (10/00) 15 000 23 HOW TO PREPARE THE MONTHLY STATEMENT OF IMPREST ACCOUNT:

Step 2: Use the Imprest Account Cash Book: Step 1: Complete the title section i) Obtain the ‘total balance at the end of the month’ Provide the Imprest holders name, marked ‘C’ project name, currency used, month Formula: [C = A + B] and year. Bank balance (‘A’) and the Petty Cash balance (‘B’) should be obtained directly from the Imprest Account Cash Book.

WORLD HEALTH ORGANIZATION MONTHLY STATEMENT OF IMPREST ACCOUNT IMPREST HOLDER MONTH YEAR PROJECT/OFFICE CURRENCY ii) Obtain the Actual Balance at the end of above month, as per Imprest Expenditure/Outflow Account Cash Book: Bank...... A from the project for Petty Cash...... + B that month marked TOTAL C ‘F’

Formula: [F = D + E - Total amounts paid out during the month: From the Bank Account...... D Adjustments] s From Petty Cash...... + E tment Adjus SUB-TOTAL

Deduct: amounts received (except replenishments)...... _ Deduct: transfers from Bank to Petty Cash and vice-versa...... _ SUB-TOTAL Step 3: Obtain the Temporary increase of the level of the account total of all previous Amount increased or brought forward months expenditures for balance...... the project year (marked Deduct: expenditure (included in D&E) _ ‘G’) Balance on Hand: _ Deduct: if not needed anymore (if balance is to be used next month see H below)

AMOUNTS TO BE REPLENISHED THIS MONTH F (Quote this amount when requesting replenishment) Add: previous months replenishments not yet received ...... G Step 4: Obtain Deduct: balance of temporary increase to be used next month ....….....HX the total amount received to date / AUTHORIZED LEVEL OF IMPREST ACCOUNT (C+F+G-H)X authorized level of Imprest Account. RECONCILIATION OF BANK BALANCE NAME OF BANK Formula: [C+F+G]. Balance per bank statement ( date...... ) I Deduct cheques issued but not paid by bank Date Number ...... …………………………. Step 5: Record the (If space insufficient, list items on a separate list) bank statement balance TOTAL J for the month in the section marked ‘I’ Add: amounts banked, not yet credited by bank Date Details ...... Make the necessary ...... ………...... …………………………… reconciliation adjustments to obtain K the actual bank balance BANK BALANCE, PER IMPREST ACCOUNT CASH BOOK (I-J+K) in cash book. (should equal item A above) Formula: [I-J+K]. PLACE DATE SIGNATURE

Important: Ensure that the Statement is properly signed by the coordinator.

Adapted from WHO Imprest Account System Form WHO413RO (10/00) 15 000

5 Steps to Fill the Monthly Statement of Imprest Account

To begin, start by carefully reviewing and understanding the structure of this statement.

Step 1: Complete the title section (record imprest holders name, project name, currency used, month and year).

Step 2: Use the Imprest Account Cash Book to provide: i) The ‘total balance at the end of the month’(marked ‘C’ on the Monthly Statement of Imprest Account) – you will need the months Bank balance (‘A’) and the Petty Cash balance (‘B’) both obtained directly from the Imprest Account Cash Book. Formula: [C = A + B]

ii) The Actual Expenditure/Outflow from the project for that month (marked ‘F’ on the Monthly Statement of Imprest Account). Formula: [F = D + E - Adjustments] Step 3: Obtain the total of all previous months expenditures (marked ‘G’) - this is the total of all expenditures from the first month of the project for the year under consideration.

Step 4: Using the data above, obtain the total amount received to date from APOC / authorized level of Imprest Account. Formula: [C+F+G].

Step 5: Record the Balance per bank statement in the reconciliation of Bank Balance section marked ‘I’ and make the necessary reconciliation adjustments. Formula: [I-J+K].

Step by Step Explanation

1. Complete the title section • Record the Imprest holders name, project name, currency used, month and year.

2. Use the Imprest Account Cash Book to provide: i) The ‘total balance at the end of the month’(marked ‘C’ on the Monthly Statement of Imprest Account) – this total balance is the sum of the months Bank balance (‘A’) and the Petty Cash balance (‘B’) both obtained directly from the Imprest Account Cash Book in the columns labeled ‘A’ and ‘B’.

ii) The actual Expenditure/Outflows from the project for that month (marked ‘F’ on the Monthly Statement of Imprest Account) is obtained by first computing ‘D’ and ‘E’ and making the necessary adjustments as follows: • Provide the ‘total amounts paid out during the month’ as per the Imprest Account Cash Book – this balance is the sum of the months Bank account receipts (‘D’) and the Petty Cash receipts (‘E’) obtained directly from the Imprest Account Cash Book in the columns labeled ‘D’ and ‘E’. • Make adjustments to the amounts paid out of the Bank Account and Petty Cash - this is done by deducting all other amounts received (except replenishment) and deducting all transfers made from bank to petty cash and vice versa. By so doing you will have obtained the Actual Expenditure/Outflows from the project for that month.

3. Obtain the total of all previous months’ expenditures • This amount is the total of all expenditures from the first month of the project for the year under consideration.

4. Obtain the total amount received from APOC to date / authorized level of Imprest Account

• This is the total obtained by adding the ‘total balance at the end of the month’ (‘C’) plus amount of total expenditure for the month (‘F’) and the total of all previous months’ expenditures (‘G’). Note: Please ignore the section on Temporary Increases of the level of the Account. This section will be explained to those projects requiring it on a need-to-know basis.

5. Record the Balance per bank statement in the reconciliation of Bank Balance section (marked ‘I’). From this balance, i) Deduct all cheques issued by the project and not cleared by the bank (marked ‘J’), ii) Add all amounts banked and not yet credited in the bank (i.e. not yet reflected in the bank statement (marked ‘K’). iii) Obtain the Bank balance per Imprest Account Cash Book. Formula: [I-J+K].

6. Attach the Bank Statement for the month to the Monthly Statement of Imprest Account.

IV. BUDGET ANALYSIS FORM

The Budget Analysis Form outlines the different budget line items under the Approved Budget and is used in tracking and monitoring each projects approved budget. The format of the form is provided by the Management of APOC and the accountants are encouraged to create it using computer spreadsheets.

The Approved Budget, which is contained in each Letter of Agreement, contains details justifying the Total Financial Obligation of the project. The amount of this Approved Budget represents the estimated total funds to be provided by WHO/APOC for expenditure during the period covered by the agreement and each budget line item is monitored by the National Coordinator (and the Accountant) using the Budget Analysis form.

An updated Budget Analysis Form shows the statement of expenditures made in each budget category and provides an indication of projects implementation and financial status at the end of each month. The Budget Analysis Form is in compliance with Point 5.3 of the Letters of Agreement which states “A statement reconciling expenditure already made to the various budget line items should be provided to WHO/APOC to justify the utilization of fund transferred to the project”.

Before preparation of the Budget Analysis Form can take place at the end of the month, the Imprest Account Cash Book must have been completed. After completing the Imprest Account Cash Book, the Budget Analysis Form is filled and submitted to WHO/APOC at the end of each month.

Following is a model of the Budget Analysis Form.

AFRICAN PROGRAMME FOR ONCHOCERCIASIS CONTROL

BUDGET ANALYSIS FORM MONTH = ……… Fixed rate: 1 US$ = ….. (Local currency)

Budget Line Item Allocation Balance at the Current expenditure Balance at the end of last end of the (As approved in the Letter of in US$ Local Curr US dollars month month (US$) Agreement) Supply Training Health Education and Mobiliz. Travel Communication Consultant Operating Expense Recapitulation

TOTAL

Total funds received from WHO so far = ………………. Signature

Equivalent in US$ = ………………. Date

HOW TO FILL THE BUDGET ANALYSIS FORM:

3 Steps to Complete the Budget Analysis Form

Step 1: Initial preparation of the Budget Analysis Form: i) Provide relevant introductory information (project name, fixed exchange rate, month and year). ii) Copy all the budget line items from the Letter of Agreement (excluding capital equipment) iii) Verify that the Allocation ‘Remaining Amount’ is correct. iv) Make 12 copies of the Budget Analysis form, one for each month of the project year. This is because the first 2 columns (Budget line and Allocation amount) will never change.

Step 2: Complete the form with actual expenditure data at the end of each month.

Step 3: Transfer the ‘end of month’ balances for each budget line item to the following month: i) Transfer the amounts in the ‘Balance at the end of the month’ column to the ‘Balance carried forward’ column of the following month. ii) Verify that the Total Amount obtained in the ‘Current Expenditure/local currency’ column is similar to the amount indicated in the Monthly Statement of Imprest Account.

Step 1: Initial Preparation of Budget Analysis Form a) Provide project name, month & year, fixed exchange rate b) Copy all budget line items and amounts from the Letter of Agreement c) Verify that the Allocated ‘Remaining Amount’ is correct d) Make 12 copies of the Budget Analysis Form to cover the project year. Step 2: Provide Actual Expenditure data For each budget line item, provide actual expenditure data each month.

AFRICAN PROGRAMME FOR ONCHOCERCIASIS CONTROL

BUDGET ANALYSIS FORM Month = …………….. Fixed Rate: 1 US$ = …. (Local Currency)

Budget line Allocation Balance at the Balance at Current expenditure Item in US$ end of last Month the end of the (US$) (Local Currency) (USD) month (US$)

Supplies

Training Health Education and Mobilization

Travel

Communication

Consultant

Recapitulation

Operating expenses

TOTAL

Total funds received from WHO so far = ………………. Signature :

Equivalent in US$ = ……………. US$ Date :

The Total Amount obtained in the Step 3: Transfer the ‘end of ‘Currency Expenditure/Local Currency’ column month’s balances for each budget should be similar to the amount indicated in the line item to the following month. monthly Statement of Imprest Account. These budget line balances should be transferred to the ‘Balance at the end of last month’ column of the following months Budget Analysis Form . 28

Step by Step Explanation

1. Initial preparation of the Budget Analysis Form • The Accountant should : a) Read carefully the budget provided in the Letter of Agreement noting the details of each budget line item and amount approved. b) Note the total amount approved. c) Note the amount retained by WHO/APOC for the purchase of capital equipment. d) Note the remaining amount to be transferred to the NOTF to perform the project activities in the field.

• Begin preparing the form by providing relevant introductory information (project name, fixed exchange rate, month and year). • Record the budget lines items indicated in the Letter of Agreement onto the Budget Analysis Form and verify that the Allocation ‘Remaining Amount’ is correct. • Make 12 copies of the Budget Analysis form, one for each month of the project year. This is because the first 2 columns (Budget line and Allocation amount) will never change.

2. Complete the form with actual expenditure data at the end of each month • For the first month, the ‘Balance Carried Forward’ is the same as the ‘Approved Budget amount. • Verify that the Fixed Exchange Rate provided is the same as the one used when the initial budget was submitted for approval. Consistency must be maintained. • Ensure that every expense made from the Approved Budget and paid out should be charged to at least one of the budget line items. The various expenses charged to a specific budget line item must be added up from the last column of the cash book (obligation-sticker number) to obtain a total which represents the statement of expenditure made to that specific budget line item during the month.

3. Transfer the ‘end of month’ balances for each budget line item to the following month: • The ‘Balance at the end of the month’ column for one month becomes the ‘Balance carried forward’ column for the following month. Verify that the Total Amount obtained in the ‘Current Expenditure/local currency’ column is similar to the amount indicated in the Monthly Statement of Imprest Account.

Important note regarding the use of Budget Analysis From

The NOTF should strictly abide by the rules in the Letter of Agreement and not overspend on the budget line items (Ref. Point 2.1 of the Letters of Agreement). In case there is a need to spend more than the amount approved on a specific budget line item, a formal request should be sent to the Management of APOC accompanied by a revision to the budget and justification on the change to be made on the budget lines to be revised.

SECTION 3: ADMINISTRATION GUIDELINES AND AUDIT REQUIREMENTS

In order to facilitate good reporting of each project’s financial activities, accurate and systematic accounts should be maintained. As WHO auditors have the right to inspect all transactions pertaining to a project, below are some administrative guidelines, which include audit requirements, to help you in properly accounting for project funds. Ensure that all the listed requirements are followed carefully.

UTILISATION OF CAPITAL EQUIPMENT

• The purchase of equipment, vehicles, photocopiers, faxes, etc. is the direct responsibility of WHO/APOC. • The accountant should keep an updated file listing all capital equipment received, the date of receipt and all equipment serial numbers. He should always monitor the equipment and ensure that the equipment is safe and secure. • If Capital Equipment is damaged or stolen, a report and evidence of actions taken to retrieve the missing Equipment should be sent to the Management of APOC.

MOTOR VEHICLES

• Vehicles and motorcycles should have well maintained logbooks with official authorization of missions/trips. The trip should be authorized by a designated officer other than the user of the vehicle. • All trips should be recorded in the logbook and the purpose of the trip should always be indicated. • The quantity of fuel utilized should be recorded in the logbook. • Maintenance dates and the nature of maintenance should be recorded in the logbook to help track maintenance costs.

BANK ACCOUNT Bank Account (Receipts in, Replenishment of, Payment from, Transfer from Bank to Petty Cash)

• Once a project Bank Account is opened, 2 authorizing signatures and the bank account number should be submitted to the Management of APOC. The names and signatures of 2 other alternate signatories in addition to the principal signatories should also be submitted. • APOC funds will only be withdrawn based only on 2 signatories, one from MOH and one from NGDO group and never two signatories from MOH or two signatories from NGDO. • The signature table below should be completed and submitted to APOC each time a new project account is opened and each time bank authorizing signatures change. It should always be updated.

Bank Account References Bank Account SIGNATORIES (Name, Project Title and Location Opening date Position and Address) 1st Level (Principal signatories) A B Ministry of Health NGDO's Representative

2nd Level (Alternate signatories) ab Ministry of Health NGDO's Representative

It should be noted that 2 signatures are required to withdraw money from the account The two should be AB or Ab or ab or aB. Never Aa or Bb (This mean that you cannot have two signatures from the MOH or two signatures from the NGDO at the same time).

• All Bank Account transactions should be recorded in the Imprest Account Cash Book.

PETTY CASH Petty Cash (Receipts in, Replenishment of, Payment from, Transfer from Petty Cash to Bank)

• The maximum amount authorized for petty cash is the local currency equivalent of US$ 200. • The petty cash balance should never exceed USD 200. If this amount is exceeded, justification must be provided since the cash count form/certificate (see page 7, 2.1) will show the number of bank notes and coins available in petty cash. • No payments should be made from petty cash for amounts exceeding the local currency equivalent of US$200. • All available petty cash should be kept in a safe. • A petty cash count should be conducted at the end of each month by the NOTF coordinator and his deputy/accountant/administrative assistant, to verify and ascertain the balance indicated in the cashbook. Regular ad hoc spot checks should also be conducted from time to time. • At the end of each calendar month all available petty cash must be counted by the coordinator and recorded in the Cash Count Certificate which should be co-signed by the coordinator and the accountant. This amount should reconcile with the amount indicated in the petty cash column of the cash book.

OPERATING EXPENSES

• Operating expenses covering such items as tyre repair, purchase of minor parts for vehicle repair, photocopies, torch batteries, kerosene, etc. are the responsibility of the coordinator at the NOTF. • The petty cash can be use to pay for operating expenses not exceeding USD200. • Full justification must be provided to support all expenses. Receipts from the suppliers are required at all times. Avoid all suppliers who cannot provide receipts. • The officer approving a purchase should not be the same person making the actual purchase in the market. If you approve a purchase, delegate the purchasing for internal control purposes. • It is the responsibility of the coordinator to acknowledge/approve all costs and vouchers presented as evidences of costs.

PER DIEMS

• Per Diem is a daily allowance which is paid according to the number of nights a staff member or temporary personnel specified in the Letter of Agreement spend on duty travel outside their duty station. The amount to be paid is based on the rate established by the NOTF. The management of WHO/APOC should be notified immediately of any changes in per diem rates. • Per Diem should cover both meals and accommodation. All per diem recipients should sign on the acquaintance roll upon receiving their dues. • Each trip must be properly authorized with proper indication of the day of the mission/trip, number of days and purpose of the mission/trip. • The NOTF should clearly document their per diem policy. The payment of accommodation to staff members should always have accompanying receipts as justification. The name of the traveller should be clearly indicated on the invoice. • A report should be written by the staff member after duty travel.

TRAVEL AND TRAINING

• Signed acquittance roll (registration forms) or a list showing all the registered attendants and their signatures should be attached to each payment voucher associated with training activities. This is

a mandatory requirement of WHO/APOC that registration forms be provided to enable the comparison of signatures. • There should be correct posting of both travel and training expenditure items as indicated in the budget. The accountant should write separate vouchers when charging expenses to each different budget line items.

STATIONERY (OFFICE AND TRAINING)

• For all purchases exceeding US$ 500, a system of purchasing supplies using a competitive quotation system should be maintained. A committee purchase decision and not an individual selection decision should be used to ensure fair selection of the supplier with the best quote and quality. All sizable printing and procurement contracts should go through this process. • The quotations obtained for large purchases should be attached to the voucher supporting the large purchase transition. • The NOTF should maintain an inventory record system for tracking usage of training and office stationery.

TELEPHONE

• A system should be in place to monitor telephone usage for both mobile and fixed line telephone systems. Include details of the purpose of call. Private use of the telephone should be charged to the staff member and the NOTF secretariat should obtain itemized bills to track telephone calls.

SECTION 4: PERFORMING MONTHLY CLOSURES AND SUBMISSION OF TIMELY REPORTS

The Management of APOC cannot emphasize enough the importance of timely and accurate submission of Imprest returns. Below is the step by step process for submission of Imprest returns.

Begin preparation of Returns to be submitted to APOC at the end of each month.

No Verify Collect all Imprest 1. All invoices and receipts vouchers and attach Vouchers are attached. all invoices and 2. All vouchers have been receipts approved by approved by the coordinator. Imprest holder.

Yes

Obtain the Bank Bank Statement Statement for the month.

No Verify 1. All voucher numbers are Close the Imprest correctly listed. Imprest Account Account Cash Book for 2. Each transaction budget Cash Book the month. Ensure line items is recorded in the that all data required is Obligation/Allotment column. provided. 3. Bank charges are included. 4. All totals are calculated. Yes

Perform a petty cash Cash at hand count and complete the Cash Count Certificate/Form.

No Verify 1. All the required calculations have been Monthly Prepare the Monthly performed. Statement Statement of Imprest 2. The bank statement has of Imprest Account. been attached. Account 3. The Statement is signed by the Imprest holder. Yes

No Verify 1. All the ‘end of month Budget Analysis Prepare the Budget balances’ for each budget Form Analysis Form. line have been transferred to the following months form. Yes

1. Prepare a cover letter to the APOC Programme Director with attention to the BFO. 2. Together with the cover letter, submit the following documents: Submission of • Imprest Account Cash Book – with attached vouchers and receipts Returns to APOC • Monthly Statement of Imprest Account – Including original Bank Statement. • Detailed Budget Analysis Form.

The Imprest Account, together with the accounting documents, should be forwarded to the Management of APOC no later than the 7th of the month following the closing of the Imprest Cash Book. When submitting your monthly returns to APOC, observe the following:

1) Ensure that all Imprest Vouchers for the month, with attached invoices and receipts, are settled and approved by the Imprest Holder.

2) Collected the Bank Statement bank at the end of each month. This will guide you in calculating the bank charges for the month to be included in the cash book.

3) Ensure that all the original pages of the Imprest Account Cash Book used during the month have been closed and included in the packet to be submitted.

4) Verify the amount of petty cash available by performing a cash count and completing the Cash Count Form/Certificate.

5) Prepare the Monthly Statement of Imprest Account. Clearly show the balance of the Projects Bank Account & Petty Cash and ensure that you attach the Bank Statement for the month.

6) Prepare the Budget Analysis Form for the month.

7) Forward all the above documents with a covering Letter to the Programme Director of APOC indicating any special request or specific comments.

Replenishment of funds can only take place after you have submitted the monthly imprest.

Note: • Compile all receipts, vouchers, cash count form, bank statements etc. in the same order as they appear on the imprest. Photocopy all the documents and keep for your records. This is useful in case the imprest is lost in transit. • Present as much detail as possible on each voucher, make notes if necessary, as these will be invaluable in case of audit queries at a later stage.

SECTION 5: FINANCIAL REPORTING REQUIREMENTS FOR APOC

The Letter of Agreement states, in section 5.3 (c), that a progress report should be submitted six months after the funds have been received (by the project) and another after 12 months indicating the activities carried out and the amount spent against each budget line. Below is the required report format.

Format for submission of Financial report to TCC

Country : ------Name of Project : ------

Date of approval : ------

Period covered by the Letter of Agreement ------

Year of Project : --

Date of last submission : -- / -- / --

Date of current submission : -- / -- / --

1) General information a) Total cost of the project for year under review US$ …………………… b) Total amount approved under the current Letter of Agreement from APOC Trust funds for the ongoing project : US$ ………………………… c) Amount retained by WHO (Cap equip. Audit, overheads, etc ) US$ ……………………… d) Amount to be transferred to the NOTF from APOC Trust funds (b-c) US$ ………………………… e) Under current Letter of Agreement please state :

- Number of installments received - - Amount (US$) received from APOC US$ ……………………… - Amount (Local currency) received US$ ………………………

e) Date the first installment was received : -- / -- / --

f) Starting month of the activities under the current Letter of Agreement -

g) Please state on total cash on hand (bank + petty cash) available at the time the financial report is being finalized for submission. ------

2) Description of the utilization of cash received from APOC Trust funds a) Please list the four activities (non capital items) for which the highest proportion of Trust funds received were used during the reporting period and indicate in the table below how much was used for each activity.

Amount used during Percentage Activity the reporting period (X) * 100/amount (X) received 1.

TOTAL (1 + 2 + 3 + 4) =

b) Please register the updated numbers in the attached Budget Analysis Form.

3) Problem areas

Summarize problems (if any), related to the release of funds for the project. Please suggest solutions to overcome problems identified. (10 lines max) :

4) Description on utilization of cash received from other sources (Communities, NGDOs, MOH & others)

State briefly amount of cash and/or in-kind (cash equivalent) received as contributions from other sources for the project during the current reporting period.

Source 1 : Communities

Budget line items* (in the Amount budgeted (cash or in- Amount received to date approved budget) kind)

Source 2 : MOH

Budget line items* (in the Amount budgeted (cash or in- Amount received to date approved budget) kind)

Source 3 : NGDOs & similar organizations

Budget line items* ( in the Amount budgeted (cash or in- Amount received to date approved budget) kind)

* More budget lines can be added if needed. (Please use separate paper which should be attached)