NEPWHAN Financial Policy and Procedure 2021

1
NETWORK OF PEOPLE LIVING WITH HIV AND AIDS IN NIGERIA

(NEPWHAN)
FINANCIAL POLICY AND PROCEDURES MANUAL
Reviewed November, 2021
____________________________________________
NEPWHAN FINANCIAL POLICY AND PROCEDURES REVIEWED,
1
2
2
3
GOAL
To advocate for the rights of PLHIV in Nigeria and seek to put in place comprehensive HIV and
AIDS prevention, care and support services
VISION
A country where PLHIV are given equal rights and privileges like every other member of the
society
MISSION STATEMENT
To empower, strengthen and coordinate all support groups, state networks, constituencies,
associations and organizations of people living with HIV and AIDS in Nigeria to contribute
meaningfully to the national response.
3
4
SPECIAL NOTICE
The provision of these policies, procedure and manual is to serve as guide in making decisions
involving the operations of NEPWHAN Human resources management and for adaptation by
Association of Positive Youth Living with HIV/AIDS in Nigeria (APYIN), Association of Positive
Women Living with HIV and AIDS in Nigeria (ASWHAN), Association of Religious Leaders Living
with HIV and AIDS in Nigeria (NINERELA+) and Support groups of People Living with HIV in
Nigeria. The document is subject to review by Management Board as at when due. Efforts shall
however be made by Administration Department to issue due notice when changes and
revisions occur and such changes will duly be incorporated in the next issue.
4
5
TABLE OF CONTENTS
CHAPTERS PAGE
Our Mission
Special Notice
NEPWHAN Background 5
Values at NEPWHAN 6
Table of Contents
Introduction
1. INTRODUCTION
Background, Purpose of the Financial Policies 10
and Procedure Manual, Institutional
and Implementation Arrangements, Relationship
between Management and Finance Department,
Finance Department Organizational Chart and
Financial Management Committee………………………………………… 13
ACCOUNTING PRACTICES AND POLICIES 14
Introduction, Responsibility for Accounting
and the Accounting Systems…………………………………………………………
BUDGET 16
NEPWHAN’S Annual Budget and Budgetary
Control, Budget Process, Payment Procedure And
Withdrawal Of Fund, Payments Procedure, Report
Based Payments Arrangements, Flows of Funds, Funds
2. ACCOUNTINGS FOR RECEIPTS AND PAYMENTS 21

Cash Management and Accounting, NEPWHAN’s Expenditure,
3. FIXED ASSETS AND LEDGER 27

Fixed Assets Register, Use of Motor Vehicle,
Cheque Issued Register, Ledgers, Reconciliation
of Accounts and Charts of Accounts………………………………………………
STANDARD ACCOUNTING INSTRUCTIONS 31-43
Stores and Stock Control, Receipt of Goods,
Receiving and Issuing Procedure, Stock,
Fixed Assets Register and Maintenance (MFAR),
Financial Monitoring Reports, Control Systems,
Authorisation and Approval Limit and Audit…………………………………………………
____________________________________________
5
6
NEPWHAN BACKGROUND
NEPWHAN refers to the central coordinating body of all support groups of people living with
HIV/AIDS (PLHIV) who choose to register with the body throughout the country. Being a central
coordinating body implies that it does not execute programs while it assists its member support
groups to carry out its stated mission and activities leading to achievement of our goal and
objectives. NEPWHAN however is actively involved in the mobilization and capacity development
of PLHIV throughout the Federation and organizing them into new or existing support groups
thereby broadening its own organizational base.
HIV was given official recognition in Nigeria when the first case was announced in 1986. As in
other parts of the world the infection came into Nigeria with its full complement of attending
fear, stigma, discrimination and rejection. It is therefore not surprising that PLHIV tended to hide
their status. Even when terminally ill, the cause of their illness is rather ascribed to other
infections such as Tuberculosis. At that time, government was still in denial and there was
therefore no commitment of any sort to HIV response by government and its arms. Responses to
the epidemic in the country were mainly by non-governmental organizations (NGOs) including
faith-based ones and international agencies that were only operating half-heartedly due to the
political climate at the time.
Lack of capacity and basic infrastructure however severely limited activities of NEPWHAN. In the
year 2000, PLHIV from all over the nation were again called together to fashion a way to move
the network forward and invigorate the executive. A new executive was put in place at this
meeting. The mission of the network was set at – To empower, strengthen and coordinate all
support groups, state networks, constituencies, associations and organizations of people living
with HIV and AIDS in Nigeria to contribute meaningfully to the national response. Its goal; “ To
advocate for the rights of PLHIV in Nigeria and seek to put in place comprehensive HIV and AIDS
prevention, care and support services.”
The vision of the network was; “ A country where PLHIV are given equal rights and privileges like
every other member of the society”
In terms of directional thrust, the network set itself two main tasks:
a. Mobilization of PLHIV all over the country, organizing them into support groups and
empowering them to join in the national response with the aim of reducing and
eventually eliminating further spread of the virus.
b. Mitigating the impact of HIV and AIDS on the life of PLHIV, PABAs, orphans and other
vulnerable children.
____________________________________________
6
7
VALUES AT NEPWHAN
▪ Empowering individuals and institutions to improve the health status of populations at
risk as a positive contribution to social justice.
▪ Personal integrity, high moral standard, commitment to our shared mission, and
excellence in our work are expected.
▪ Common courtesy in our personal interactions, a collaborative working style, and
concern for the rights of others are the chief manifestations of, and basis for, building
NEPWHAN’s mission.
▪ Pursuit of public health goals at NEPWHAN is driven by their importance, by the
possibility of positive impact, and by technical and financial feasibility, not by potential
profitability. Hence, NEPWHAN is constituted as a nonprofit corporation to serve the
public interest.
▪ The immensity of the tasks we face in public health management requires a high degree
of humility. Our individual energy, intellect, sense of humor, and dedication can make a
difference.
▪ Management support for development means long-term commitments to our clients and
colleagues. It demands that we work for the success of others, promoting their capacity
to work more effectively and independently and placing a higher value on facilitating
their success than on personal or organizational recognition.
____________________________________________
7
8
INTRODUCTION
This policy manual exists to promote unity through a common understanding of what is expected
of NEPWHAN and her employees. This document shall be subject to a review every four years, in
order to reflect current practices.
▪ NEPWHAN will hire and retain employees, and provide those benefits and rights under
the guidelines of Nigerian labour law and as provided by the project under which the
staff is hired.
NEPWHAN will treat employees in a manner in keeping with the mission and ethical standards of
the organization.
To support the mission, NEPWHAN is committed to:

▪ Employing staff who are recognized for technical excellence, integrity and dedication;
▪ Collaboration with colleagues on the basis of mutual respect and shared goals;
▪ Providing a workplace that is professionally stimulating and supportive;
▪ Ensuring the protection of the health, safety and welfare of all employees in NEPWHAN,
and to take affirmative action to ensure that qualified applicants are employed and are
treated equally regardless of their race, age, color, religion, sex, national or ethnic origin,
social or marital status, physical disability or HIV status.
In accordance with the labour law of Nigeria, NEPWHAN will ensure equal opportunity for
women, in relation to remuneration, employment security and provision of maternity and
paternity leave.
NEPWHAN shall maintain ethical standards in the hiring and termination of all staff.
Office Operations Policy

NEPWHAN will set operation policies in collaboration with the management team,
▪ Following sound business practices and complying with any applicable Nigerian law and
donor requirements where necessary;
▪ Providing a workplace that is secure, comfortable and efficient;
▪ Creating policies that treat employees equitably;
▪ Implementing procedure that safeguard assets and equipment from loss, fraud or
misuse.
____________________________________________
NEPWHAN FINANCIAL POLICY AND PROCEDURES REVIEWED
8
9
Standards of Ethical Conduct

Personal integrity is considered to be the most important contribution an individual may bring to
NEPWHAN. NEPWHAN expects all employees to adhere to the highest standards of ethical
conduct in their professional and private affairs. General standards of conduct include avoiding
any action that might result in or create the appearance of:
▪ obtaining personal financial gain from one's position or activities with NEPWHAN;
▪ facilitating the financial gain of a competitive organization or individual through
disclosure of confidential information about NEPWHAN;
▪ failure to properly account for NEPWHAN fund with which one is entrusted;
▪ failure to report personal use of NEPWHAN facilities (e.g. vehicles, furniture and other
equipment)
▪ All employees shall be loyal to the policies, procedure and activities of NEPWHAN above
all other considerations.
Fees, honoraria, and gift items of nominal value may be accepted by a staff member. However,
acceptance of any gift items, meal, or social invitation which is not in keeping with good business
ethics, or which obligates the staff member or the recipient, which is in conflict with NEPWHAN
interest is prohibited.
____________________________________________
8
9
10
CHAPTER ONE
INTRODUCTION
01.01 BACKGROUND
The NEPWHAN financial management is a process which brings together planning, budgeting,
accounting, financial reporting, internal control, auditing, procurement, disbursement, and the
physical performance of the various program with the aim of managing resources to achieve the
programs objectives. Sound financial management is critical to program implementation and
hence the achievement of the desired program objectives. Relevant and reliable financial
information provides a basis for better decision-making, improved management of physical and
financial resources, and efficient implementation of program activities.
An effective financial management system is vital for programs because of the need to deliver
services to target groups quickly over a large geographical area and to a wide variety of
stakeholders. Strong financial management systems provide:
▪ Essential information to those who manage, implement and supervise programs;
▪ Comfort to lenders and the donor community that funds have been used efficiently
and for the purpose intended; and
▪ A deterrent to fraud and corruption, because they incorporate strong internal control
and transparent financial reporting systems which identify unusual occurrences and
deviations.
The responsibility for the establishment and maintenance of a financial management system for
NEPWHAN Administration rests with the Board of Trustees, the Management Board and the
NEPWHAN’s Finance Department. When preparing proposals for financing programs, NEPWHAN
will always considers the following financial management issues.
▪ The capacity of the proposed financial management system, the availability of
relevant and adequately qualified personnel to undertake financial management
functions.
▪ That an appropriate organizational structure as well as adequate staffing is in place
and will be maintained with clearly defined responsibilities for program activities.
▪ That when program implementation begins, a financial management system, which
will reliably record and report all programs financial transactions, is in place.
▪ That throughout the life of the programs, an appropriate financial management
system, which will produce annual financial statements in compliance with
acceptable standards is maintained.
▪ That will assure the timely appointment of an independent auditor under acceptable
terms of reference and ensure the timely submission of acceptable annual financial
statements and audit reports.
____________________________________________
9
10
11
01.02 PURPOSE OF THE FINANCIAL POLICY AND PROCEDURE MANUAL

This manual provides broad guidelines for the development and maintenance of financial
management system for NEPWHAN. The principles and themes outlined here are specifically to
address the fiduciary aspects of the implementation of all Programs at country level. It is
therefore not program or donor specific. However, many of the issues addressed here in the
manual are applicable to other programs funded by governments and other donor organizations.
The financial procedure manual will ensure the institution of a reliable financial
management system that promotes transparency and encourages orderly and systematic
documentation of financial transactions in order to facilitate timely preparation of
accurate, relevant, and reliable financial information that will enable the various
stakeholders to plan, implement, monitor, and appraise overall progress towards the
achievement of NEPWHAN objectives.
The manual:
▪ Outlines the NEPWHAN’s accounting policy and lay down rules in preparing financial
statements;
▪ Sets out appropriate procedure for accounting controls and checks;
▪ Recognizes adequate recording of funds flow through efficient recording and reporting
on grant drawdown and usage, and thereby ensures proper monitoring of the
application and utilization of funds;
▪ Sets out the structure and roles of the Finance Department, vis-à-vis the overall
management and operation of all Programs;
▪ Provides a standard procedure and reporting system for the staff of the Finance
Department and also specifies the basic job descriptions applicable to each function,
position and personnel;
▪ Provides the yardstick by which the performance of the Finance Department can be
measured;
▪ Provides assistance in the deployment of resources with the purpose of ensuring
economy, efficiency and effectiveness in the use of such resources;
▪ Eliminates arbitrary and subjective application of methods and procedure in the
treatment of financial transactions;
▪ Defines limits of authority and approvals for all activities which would have financial
implications; and
▪ Outlines systems of procedure and controls for procurement and contracts/grants
administration and monitoring;
Other uses of the manual include:

▪ A training resource for new and existing staff;
▪ A reference for staff in performing financial management tasks;
▪ A reference for the Finance Department to ensure compliance with financial
management policies and procedure;
▪ A reference for auditors, consultants, and other partners and stakeholders to
understand or evaluate the financial management system;
____________________________________________
11
12
▪ A reference for the compliance with financial management policies and procedure;
and
▪ A tool to be used to standardize financial management practices and procedure for all
programs.
This manual will assist program planners and those implementing Programs (staff and Sub-
Recipients) to meet NEPWHAN’s and most donor specific financial management expectations
and requirements. For instance, NEPWHAN and most donors require that a minimum financial
management system should:
▪ Reliably record and report all assets and financial transactions of all programs
including commitments;
▪ Provide sufficient financial information for managing and monitoring of program
activities; and
▪ Have in place appropriate audit arrangements to provide for an annual independent
audit of financial statements.
01.03 INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS

The institutional arrangements for the implementation of all Programs are structured in such a
way that will facilitate the achievement of major objectives vis-à-vis: to provide some benefits to
the maximum number of members and beneficiaries; and to deliver these benefits as quickly as
possible.
Membership of the management (those that manage NEPWHAN on daily basis) shall be made up
of relevantly qualified personnel with appropriate expertise in their chosen fields. Except those
that were elected.
Management Staff will have the following functions:
▪ Preparing/Consolidating annual work program and reviewing quarterly financial
monitoring reports and financial statements;
▪ Implementing the policy decisions regarding all programs and activity components;
▪ Coordinating, monitoring, and providing technical support to implementing officers
and Sub Recipient;
▪ Preparing and submitting proposals for funding to donors and partners and other
stakeholders;
▪ Evaluating proposals from Sub Recipient;
▪ Ensuring that the Balance Sheet, Income and Expenditure Account and Program
Progress reports are prepared latest 3rd week after the month ends
▪ The bank reconciliation should be prepared on or before 15th of the following month.
▪ Submission of the quarterly report to the management board, all necessary reports
can now be submitted to the stakeholders if required.
A Finance Department will establish appropriate financial management to ensure that:

▪ All important business and financial processes are covered;
▪ Adequate internal controls are in place;
▪ Financial monitoring reports are prepared on a timely basis;
____________________________________________
12
13
▪ The financial information required by and other stakeholders are prepared

promptly;
▪ The annual financial statements are prepared on a timely basis; and
▪ The annual external audit is completed in time and audit findings and
recommendations are implemented expeditiously.
The Finance Department will amongst other things:

Be properly staffed;
Have a clear reporting line;
Be headed by a relevantly qualified Accountant with a minimum of 2 years post
professional qualification;
Have efficient and effective disbursement arrangements;
Maintain all financial records and books of account, documentations, and internal
controls;
Ensure adequate internal audit arrangements and activities;
Ensure adequacy and reliability of financial management arrangements;
Be responsible for preparing budgets, reports, and provide regular/ad-hoc financial
reports; and
Ensure compliance with financial management requirements of the management,
donors, partners and other stakeholders.
The Accountant who will be reporting to the Finance Manager;

Will be an experienced and relevantly qualified accountant who will be responsible for the
under-mentioned accounting functions:
▪ Receipts and Payments: This entails handling all banking operations, the preparation
of payment vouchers and other related documentation, maintenance of major Cash
Books including their reconciliation.
▪ Prepayments/Advances and General Accounting: This entails recording of all

advances and their subsequent retirement as well as updating major subsidiary
ledgers, including the maintenance of major books of accounts, the fixed assets
register and other general accounting duties.
▪ Grant and Budget: Involves handling all matters of Grant – records, Statement of
expenditures SOEs, replenishments, correspondences, and other issues that may
have to do with the budget. It also entails the preparation of On-going Progress
Update and Disbursement Request Report.
▪ Audited annual financial statements: This entails ensuring that the audited financial
statements together with the Auditors Report and Management Letters are
submitted to the management and other stakeholders within agreed periods.
____________________________________________
13
14
The Internal Auditor who will report to the management Board; Will have
responsibility for the following internal audit functions:
▪ Reviewing and appraising the soundness, adequacy and application of accounting,
financial, and other operating controls and promoting effective controls at reasonable
cost.
▪ Determining the extent to which assets are accounted for and safeguarded from losses of
all kinds.
▪ Ascertaining the reliability of management data developed within the organization.
▪ Appraising the quality of performance in carrying out assigned responsibilities.
▪ Ascertaining the extent of compliance and determine adherence with established
institutional policies, plans, and procedure.
▪ Highlight areas for process improvements by making appropriate constructive criticisms
and recommendations.
▪ The internal Auditor submit report to the Management board every quarter
01.04 RELATIONSHIP BETWEEN MANAGEMENT AND FINANCE DEPARTMENT
The basic functions of the Finance Department will be accounting, planning, budgeting,
reporting, internal control, internal auditing, management and administration of funds.
Management will have the responsibility for achieving all programs and development objectives
by providing an overall framework for planning, executing, controlling, monitoring and
evaluating project, programs and activities.
01.05 FINANCE DEPARTMENT ORGANIZATIONAL CHART
Developing an organizational structure for the Finance Department involves determining the key
areas of authority and responsibility and appropriate lines of reporting, taking into consideration
segregation of duties to ensure that no single staff initiates, process and record a transaction
alone.
01.06 FINANCIAL MANAGEMENT COMMITTEE
A Financial Management Committee (FMC) will be established to monitor and supervise the
financial management functions. The finance manager shall be responsible to the FMC and
provide necessary information. The composition of other members of FMC shall be determined
by the Management board. The FMC will meet at a periodic interval to review the financial
reports generated by the financial management system, monitor financial management and
procurement aspects of Programs and activities and resolve financial issues that arose. The
Reports to be reviewed at a period interval will consist of the General Program Reports, Financial
Reports, Procurement Report, Personnel Report and Progress Report from all activities.
____________________________________________
14
15
CHAPTER TWO
ACCOUNTING PRACTICES AND POLICIES
02.01 INTRODUCTION
This section summarizes the accounting practices and policies to be adopted. The procedures by
which the policy is implemented are contained in the relevant sections of this manual.
02.02 RESPONSIBILITY FOR ACCOUNTING POLICIES
The Finance Manager, the Internal Auditor and the External Auditors may recommend
accounting policies to management for approval. However, the implementation of accounting
policies shall be the responsibility of the Finance Manager and the Internal Auditor.
02.03 THE ACCOUNTING SYSTEMS
The Finance Department’s Accounting Systems shall be based on a rational combination of

Accounting Policies and Practices best suited to report the financial affairs. The reports are
prepared in accordance with the reporting and presentation requirements of International
Financial Reporting Standard (IFRS) issued by the International Accounting Standard Board (IASB)
while the policies and practices are in conformity with the Generally Acceptable Accounting
Principles(GAAP):
▪ Going Concern – operations will be sustained into the foreseeable future and that
there will be no significant liquidation of its assets due to a reduction in the scale of
operations or Grant cancellation.
▪ Consistency - Accounting policies set below will be applied consistently from one
accounting period to another, and within accounting period, except when there is a
special reason to depart from such policies. However, such reason(s) will be fully
disclosed in the Financial Statements.
▪ Prudence - Adequate restraint will be exercised in the determination of income to be

included in the Income and Expenditure Account and that all known costs and
liabilities are charged in relevant period accounts with due regard to the accounting
basis.
▪ Accrual Accounting- Income and charges relating to a specific financial year will be
taken into account when occurred and not only when the related cash are received or
paid.
▪ Cash Accounting – Income is recognized when cash are received, and expenditure
recorded when related cash are spent
▪ Hybrid Accounting –NEPWHAN will operate a hybrid of accrual and cash accounting.
____________________________________________
15
16
ACCOUNTING POLICIES
The following are the significant accounting policies to be followed in recording transactions and
in financial position reporting:
1) Accounting Convention:
The accounts are to be prepared under the historical cost convention.
2) Basis of Accounting:
The Cash basis shall be adopted in the preparation of Financial Statements.
3) Fixed Assets and Depreciation:
Fixed Assets are those intended for use over a period exceeding one accounting year. In
applying the capitalization policy, all related (landing) costs and installation costs are
included in the acquisition cost of the fixed asset item. Capital expenditure on contract
works will be included on the basis of valuation certificates including retention. No
Depreciation is charged on the project’s fixed assets as there are no revenues to be
matched against such charges and but charged in total within the period it is incurred.
4) Inventory:
5) Debtors:
Debtors are stated after making specific provision for debts considered doubtful of
recovery.
6) Foreign Currency:
Income and Expenditure items in foreign currencies are converted to Naira at the
prevailing rates at the transaction dates. Assets and Liabilities expressed in foreign
currencies are converted to Naira at the prevailing rates at the balance sheet date and
gains or losses on such conversions are credited or charged to reserve
in the period which they arise.
7) Indirect cost: NEPWHAN shall charge an appropriate indirect cost rate on all projects
being proposed.
____________________________________________
16
17
CHAPTER THREE
BUDGET
03.01 NEPWHAN’S ANNUAL BUDGET:

The Management board has the responsibility of final preparation and approval of NEPWHAN
organizational budget, with the Finance Manager and Program Manager collating the Budget
from various department and final submission for review and approval from Management Board.
The circular/ Call for budget and plan activity from various departments for the coming year shall
be before mid-July of the current year. The next year’s Annual budget must be approved by
management by end of November on the current year.
03.02 BUDGETING AND BUDGETARY CONTROLS

BUDGETING
The budget shows expenditure by objectives, service delivery areas and /or activities, the nature
of the expenditure, and expenditure timing. The National coordinator must ensure that a good
work plan is prepared from the approved budget to ensure timing of cash flow.
The Work Plan will use the trends and assumptions in the approved budget to set out specific
objectives, targets, performance measures, indicators and financial plan for each year, and the
way in which these will be met. The agreed Work Plan shall be the basis for developing an annual
financial plan. The Financial Plan will lay emphasis on funds requirements as well as the timing.
The National Coordinator will submit the detailed work and financial plan to management Board
for review and approval before implementation.
Once the Work and financial plan has been approved, the necessary budgetary control
machinery shall be put in place to ensure effective monitoring of the activities under the various
departments. The National Coordinator shall put in place an appropriate accounting procedure
that will monitor expenditure against the work plan. No expenditure will be authorized by the
National Coordinator except in accordance with the approved work plan.
At the end of every month, quarter and year, the Finance Department shall prepare Financial
Monitoring Report for the Management Board, which will include a Budget Report. The Budget
Report shall comprise of the expenditure for the month as well as the accumulated figures, the
latter figures being further compared with the corresponding budget figures, and variances
between budgeted amounts and actual expenditure stated, both in amount (absolute) and
percentage.
Significant variances shall be investigated and explained in a report. This report shall be sent to
the Finance Manager, Head of units, relevant program Manager/officers and all
____________________________________________
17
18
requiring such reports. The process of informing management Board about the level of actual
expenditure as compared to budget limits will be part of the monitoring system.
03.04 BUDGETING PROCESS

The under-listed are the budgeting process to be adopted:
▪ Department timetable is drawn by the Finance Manager to all Heads of
Departments/Budget holders.
▪ Finance Manager will call for budget retreat, which shall be attended by all the Heads
of Department/ Budget holders in August every year.
▪ Budget holders shall submit annual proposals to the Program Management Team
(PMT), which consist of the management team.
▪ Management will convene another meeting to finalize the budget.
▪ The National Coordinator will send the final budget to the Management Board for
vetting and approval before implementation
▪ The approved budget is then circulated to Heads of unit/ Budget holders for
implementation.
▪ The Internal Audit is then charged with the monitoring, compliance and evaluation of
the budget.
03.05 PAYMENT PROCEDURE AND WITHDRAWAL OF FUNDS:
Payment Procedure
The following steps are adhered to before payments are made:

A link between progress of work done and the payments;
An efficient and effective flow of funds;
The need for a sufficient fund;
Supporting documents for verification and payments;
The meeting of the requirements of Financial Monitoring Reports.
All payment shall follow the following processes;

Internal memo is raised by a staff through the head of the department
Through the National Secretary for recommendation
National Coordinator approves and forwards to Finance Manager
Finance Manager Sends to internal auditor for checking correspondence with
approve budget.
Internal auditor checks for compliance and pre-monitoring audit.
Account Office process and make payment
Report based payment arrangement
This is a payment arrangement, whereby documentation and feedback report is required as part
of conditions needed to effect payments, stating the date and duration of activities. The
objectives of this are:
____________________________________________
18
19
To facilitate prompt payment of any size, which is required for smooth and efficient
program implementation
To reduce payment processing time
To reduce transaction costs related to the submission of supporting documentation for
disbursement
To promote integrated monitoring of all financial management and work in progress for
NEPWHAN activities.
03.06 FLOW OF FUNDS

The Finance Department will identify a major bank where a Domiciliary Account and a Naira
denominated account will be opened. The authorized signatories to the account shall be the
National Coordinator, National Secretary and the National Treasurer. A system of early
replenishment will be instituted such that the Finance Department will have adequate resources
to enable NEPWHAN activities to be implemented. Equivalent foreign currencies (if any) will be
converted and transferred into the Naira account to meet identified eligible local expenditure.
All bank accounts MUST be reconciled with the cashbook using the bank statements on a
monthly basis. These reconciliations will be reviewed by the Finance Manager and approved by
the National Coordinator.
03.07 FUNDS DISBURSEMENT

The Finance Manager shall prepare a letter of instruction in triplicate to the commercial bank(s)
where the NEPWHAN Domiciliary Account is held to transfer the Foreign Currency equivalent of
the Naira amount to the Naira Account. The letter of instruction shall be approved and signed by
the authorized signatories to the Domiciliary Account. The Finance Manager shall dispatch two
copies of the letter of instruction to the bank(s) and forward the third copy to the Accounts
Officer for his/her file. On receiving the letter of instruction, the bank(s) shall acknowledge
receipt by stamping and signing the duplicate copy, which will be filed in bank correspondence
file in Finance Department. The relevant transactions shall be posted into the Cash Books as
appropriate, using Inter-Bank Fund Transfer Voucher IBFTV (See Appendix 20). Before any
disbursement is made from the Naira Account, the approval of the National Coordinator shall be
obtained and adequate directives for disbursement shall be given by the Finance Manager.
Accounting Implication shall be:

Debit Bank (Naira Current Account) and Credit Bank (Domiciliary Account)
The posting must be done using the currency of transaction, i.e. the foreign currency. The rate
prevailing at date of transaction must be accordingly applied.
03.08 BANKING ARRANGEMENTS

With respect to banking arrangements and funds flow, donors will disburse grants through a
domiciliary Account of foreign currency denomination or Naira account opened with a
commercial bank (s) approved by management Board.
____________________________________________
19
20
The Domiciliary Account shall be operated by bank transfers through transfer instructions to the
Bank(s), while the Naira Account shall be operated as Cheque Accounts. If all cheques are
presented and cleared as issued, the balance on these accounts should be equal to the balance
in the cash book except for bank charges. Expenditures/transactions payments shall be made by
cheque. All cheques and letters of confirmation shall be signed by at least two (2) authorized
signatories.
03.09 Signatories:
There shall be two (2) signatories with one each from;
➢ Category A
➢ Category B.
Category A shall be the National Coordinator

Category B shall be The National Secretary and The National Treasurer
All Cash Books and bank statements shall be reconciled monthly within the 15th of the month.
Differences arising, if any, shall be investigated and resolved promptly. Un-presented cheques
after six (6) months shall become stale and entries reversed in the Cash Book. (see Appendix 12
for sample Bank Reconciliation Statement)
All payment vouchers and cheques shall be written in the name of the beneficiary that appears
on the supporting documents. When a beneficiary other than the person shown in the
supporting documents requires to be paid an open cheque, a letter of indemnity must be
obtained.
Signing of blank cheque is prohibited.
Unused booklets shall be kept in a safe custody by the Finance Manager.

Transfer of foreign currency to Naira shall be converted at the prevailing rate on the value date
i.e. date of the transaction.
03.10 BANK RECONCILIATION AND FINAL ACCOUNTS
Bank Reconciliation Statements shall be prepared monthly for all bank accounts. It is, therefore,
important that all accounting books are posted to date and balanced. Bank Statements shall be
obtained from the banks and reconciliation statements prepared.
The Internal Auditor shall ensure that all reconciliation differences are properly and promptly
investigated with a view to regularizing them. All reconciliation statements shall be reviewed by
the Financial Manager and approved by the National Coordinator. When the bank reconciliation
is completed, the Trial Balance and other Final Accounts are prepared for Management Team
with all the supporting schedules. The final accounts and the relevant schedules shall form part
of the Program Financial Monitoring Report.
____________________________________________
20
21
The National Coordinator shall before the end of the third week (i.e. 15 working days) after the
month end, submit to the Management Board quarterly, the Bank reconciliation statement, the
Trial Balance and other Final Accounts including a statement showing Budget versus Actual
expenditures and their variances. The Management Board shall within one week of receipt vet
and approve the reports.
____________________________________________
20
21
22
CHAPTER FOUR
ACCOUNTING FOR RECEIPTS AND PAYMENTS
04.01 CASH MANAGEMENT AND ACCOUNTING

The Finance Department shall have responsibility for ensuring that the procedure established for
payments and receipts of cash are properly followed. Also, it is responsible for issuing receipts,
preparing payment vouchers, and maintaining the cash records in accordance with the laid down
procedure.
The main features of the accrual systems are as follows:

▪ At commencement of operation for local bank account, a cash book shall be kept by
the Finance Department to record all receipts and payments on a daily basis.
▪ All cash and cheque receipts shall be banked intact within 24 hours;
▪ Funds received shall be banked with the appointed bankers in the account opened for
the purpose;
▪ All cheques shall be signed only by the authorized signatories;
▪ The bank statements entries are compared every month with the cash book entries
while discrepancies discovered are promptly taken up with the bank;
▪ Details of receipts and payment vouchers shall be posted into the appropriate Cash
Book/computerized accounting system daily by the Finance Department in real time.
▪ Alterations of transactions in ledgers in the computerized accounting system can only
be effected by the accounting officers responsible for the posting with the approval
of the Finance Manager.
04.02 NEPWHAN EXPENDITURE

All expenditure shall receive the clearance of the head of Units/budget holder before they are
authorized by the National Coordinator and no expenditure of Program funds shall be incurred
or committed unless:
▪ Funds are available and expenditure within approved work plan.
▪ The proposed expenditure is an eligible expenditure under grant Agreement.
▪ The expenditure to be incurred is in line with approved NEPWHAN policies and
procedure.
▪ Staff giving clearance to expenditure must ensure that account description properly
portrays the nature of the expenditure, the activity, the component and program or
project against which the expenditure is to be charged.
▪ Under no circumstances should Project expenditure be incurred for private purposes.
▪ Approval to incur expenditure shall rest with the National Coordinator who can
delegate levels of financial authority and responsibility to various positions under the
program.
____________________________________________
22
23
04.03 MODE OF PAYMENT

The Finance Department will process two types of payment:
▪ Sub Recipient related payments
▪ Other NEPWHAN Related payments
Sub Recipient Related Payments
When a proposal(s) is/are received with the supporting documents, the relevant program officer
shall review the documentation for completeness and appropriateness and make
recommendation (after which the Program Manager and the program officer must have checked
for budgetary limit) to the National Coordinator for his/her approval.
Other NEPWHAN Related payments
All payments shall be made by online bank transfers and cheques.
Advances against Expenses
Advances are defined as “payments” made by the Finance Department for delivery of services or
goods in the normal course of business and advances given to staff (national and state) for the
purpose of activity implementation. An advance can be cleared by the retirement with
receipt/invoices where appropriate or by refund of unutilized funds advanced. Authorizing
officers approving travels should ensure that travel advance is applied for and disbursed within a
week of departure date. If approved travel does not take place or is cancelled, the travel advance
should be refunded immediately, and receipt issued for the purpose
Procedure
To obtain an advance against expenses, the recipients are required to complete “Cash Advance
Requisition Form (CARF) (See Appendix 2) with all relevant information, which must be duly
signed by the Head of Unit/budget holder. National staff is required to retire his/her advances
within seven (7) working days of return from the date of completion of activities for which the
advance was granted, the recipients must retire the advance with supporting documents
(receipts/ invoices, etc). This must be done by using Cash Advance Retirement Analysis Form
CARAF (See Appendix 21).
Procedure for State Advance

(Standard Operating Procedures for State Activities Advance)
For any state activity implementation by state staff, the retirement of advances disbursed for the
month is required to be retired immediately after the implementation of Activity is completed
within the stipulated time, and the retirement should get to the national office on or before 15 th
of the following month. This will enable the state staff to compile all financial, program and M&E
reports accordingly. Buffer will be given to state staff for the following month in order not to
distort implementation of activities at the state level and on no account will further advance be
23
24
given to state staff that fails to retire two or more months pending advances. At the close-out of
project, salary will not be paid to staff with pending retirement until such retirement is cleared.
Failure to retire within the stipulated time limit will earn the staff a notification letter and/or
surcharge from the staff salary. Staff whose retirement of advances is outstanding may not be
advanced funds for any new assignment till retirements of outstanding advances are reconciled
accordingly. Other disciplinary action may be enforced accordingly.
Accounting Implication
When the advance is taken

Debit Staff Subsidiary Ledger in the Cash Advance Control Account
Credit Mode of Payment
When the advance is being retired

Debit Expense
Credit Staff Subsidiary Ledger in the Cash Advance Control Account
When the expenses incurred is more than advance collected, that is, reimbursement is required
Debit Expense, with full cost incurred
Credit Staff Subsidiary Ledger in the Cash Advance Control Account.
24
25
Payment against expenses

Payment to suppliers, consultants and contractors shall be made on cash basis. That is,
NEPWHAN shall recognise liabilities and expenses immediately they are incurred.
Contractors/Supplier Invoice Voucher
CSIV (See Appendix 3) shall be used to record transactions that are treated on accrual basis.
When invoice is submitted and certified for payment
Debit Asset/Stock/Expenses
Credit Individual Subsidiary Ledger in the Creditors Control A/c
When the invoice is due for payment
Debit Individual Subsidiary Ledger in the Creditors Control A/c
04.03 MOBILIZATION PAYMENTS

The procurement officer will forward a copy of the approved Contract for services or the
Purchase Order to Finance Department indicating that mobilization fee that is been required.
The Finance Department will ensure that a bill from the Consultant or a Pro-Forma invoice from
the supplier is submitted and processed for payment. At this stage the payment is charged to the
advance payment account.
Debit Individual Subsidiary Ledger in the Creditors Control A/c
Advance Payment Guarantee (APG):

From a reputable commercial bank or insurance company will be required before an advance
payment is given to any contractor or consultant (Subject to the Amount involved). Advance
payment will be a maximum of 50% of total cost of the contract. The advance payment must be
recovered from the subsequent payments due to the contractor or consultant.
____________________________________________
25
26
Dr Asset/Stock/Expenses
Cr Individual Subsidiary Ledger in the Creditors Control A/c
Cr Individual Subsidiary Ledger in the Creditors Control A/c (with the balance on the invoice)
On satisfactory receipt of the goods or services, after receiving report has submitted (duly signed
by internal auditor, procurement officer, store and rep from finance department) the stores
keeper/ end-user would promptly notify the Finance Department for full payment and where the
contract agreement provides for the deduction of 10% retention fees to be paid after one
month..
Accounting Implication, where deduction of retention fees is involved:

Dr Asset/Stock/Expenses
Cr Individual Subsidiary Ledger in the Creditors Control A/c
Cr Individual Subsidiary Ledger in the Retention Fees Control A/c (with the 10% of retention
amount)
Cr Individual Subsidiary Ledger in the Creditors Control A/c (with the balance on the invoice after
retention fees)
04.05 PERSONAL REIMBURSEMENTS

All personal reimbursement/claims must be made on Cash Reimbursement Requisition Form
CRRF (see Appendix 4) and should be accompanied by original receipts and supporting
documentation.
04.06 PETTY CASH

The Finance Department shall maintain an Imprest Account to facilitate the purchase of minor
items. The Accountant shall be responsible for the security, balancing and reimbursement of this
Imprest Account. The Imprest Account will have a maximum petty cash float of N50,000 (Fifty
Thousand Naira). The float shall be replenished when the cash till balance falls below N5, 000
(Five Thousand Naira), subject to availability of fund. The Imprest holder shall be the Account
Officer.
PROCEDURE FOR PAYMENTS FROM THE PETTY CASH FLOAT:
Petty cash claims by beneficiaries shall not exceed the threshold of Five Thousand Naira (N5,
000) only. However, claims exceeding this level should be reimbursed via a cheque.
Each request for petty cash payments will be forwarded to the Head of Unit for approval. The
Finance Department will ensure that the petty cash so disbursed are adequately/appropriately
documented. Petty Cash Vouchers shall be filed serially (with supporting documents attached)
on a daily basis and PCVs (Appendix 5) for each year shall be filed separately.
____________________________________________
26
27
The Accounts Officer must ensure that the petty cash float is validated weekly, the float is kept in
a secure, locked place and a written report detailing any discrepancies is sent to the Accountant.
The Accountant after investigation shall report to the Finance Manager who shall present the
report to management within 24 hours of knowledge of the discrepancy. Petty cash shortages
will be borne by the Accounts Officer responsible by way of immediate cash payment into the
till. The petty cash float will be subject to regular and surprise independent checks by the
Internal Auditor and a reconciliation of the petty cash float shall include all monies on hand at
the time. All attached supporting documents must be stamped “PAID”, signed and dated by the
Accounts Officer after payment. Official receipts collected from third parties in respect of
payment from petty cash should be attached to the Petty Cash Voucher.
REFUND OF PETTY CASH EXPENDITURE:
Program Staff seeking reimbursement of expenditure within the approved limit must present an
approved Cash Reimbursement Requisition Form, showing the amount claimed with supporting
documentation to the Financial Department. Before reimbursing a claim, the Finance
Department should ensure that:
▪ The reimbursement does not exceed the approved limit
▪ The claim has been authorized by the Head of Unit.
▪ All support documents are attached
▪ All expenditure details have been entered to enable proper verification
Dr Expenses
Cr Petty Cash Account
REIMBURSEMENT OF PETTY CASH FLOAT
When cash at hand has been reduced below N10, 000, the Account Officer must commence the
reimbursement process. This shall be accomplished by the preparation of Petty Cash
Reimbursement Statement PCRS (See Appendix 6), which is to be supported by all the
reimbursable petty cash vouchers for the Finance Manager’s approval. The Accountant shall:
1) Check to ensure that the Petty Cash Vouchers are in order and have been signed by an
approved authorizing officer, do not exceed the petty cash limit and are coded to the
correct account codes
2) Check the PCVs against the listing
3) Check that the reimbursement amount and the cash on hand balances to the petty cash
float
4) Sign list to indicate that all necessary checks have been completed and approved
Dr Petty Cash Account
Cr Mode of Payment
____________________________________________
NEPWHAN FINANCIAL POLICY AND PROCEDURES REVIEWED, OCTOBER 2017
27
28
04.07 ACCOUNTING RECORDS

The following books of account and records shall be kept to ensure that all monies received are
properly brought to account, all payments are correctly made and properly authorized and
recorded and that adequate control is maintained over all assets. These books and records might
not be physically required in a computerized accounting system, because they will be automated
in the system.
04.08 CASH BOOKS

This is for bank transactions detailing receipts and payments. Separate bank accounts as well as
separate cash book will be maintained for each bank account and petty cash. The cash book shall
form part of the double entry records.
____________________________________________
28
29
CHAPTER FIVE
FIXED ASSETS AND LEDGER
05.01 FIXED ASSETS REGISTER

This provides details of suppliers, description of goods, original cost, location and disposal of
assets. The Fixed Assets Register FAR (See Appendix 7) highlights for each individual asset, the
following information:
▪ Supplier’s name and address;
▪ Description and location of the asset within the Program;
▪ Asset reference (identification) number;
▪ Purchase price (cost) and/or valuation;
▪ Date of purchase and disposal;
▪ Useful life and residual value;
▪ Serial or registration number
▪ Additions to the asset; condition of asset, etc.
The Fixed Assets Register (FAR) shall be updated regularly by the Administration Department
while the internal auditor validate using the information from the appropriate source
documents, such as, Cheque Payment Vouchers, Journal Vouchers JV (Appendix 8), etc.
Periodically, the Fixed Assets Register will be reconciled with the Fixed Assets Ledgers, and a
physical verification of fixed assets will be carried out. Any discrepancies shall be investigated
and satisfactorily resolved with the approval of the Administration Manager. The FAR shall
support the double entry records and for the extraction of depreciation charges for a particular
period. Microsoft Excel spreadsheet shall be used to maintain the Fixed Assets Register.
Dr Depreciation Expense Account
Cr Accumulated Depreciation Account
05.02 USE OF MOTOR VEHICLE:

Mileage log should be maintained for all vehicles (NEPWHAN & Project) by the drivers and
supervised by the Administration Manager. Only the drivers shall drive NEPWHAN vehicle (s).
Dr Cash Book
Cr Individual Ledger Account
Cheques Issued Register (See Appendix 9)

This lists all cheques drawn and evidence of their collection by payees
____________________________________________
29
30
05.03 LEDGER
Advance Payment Ledger:

This shall be used to record advances taken by staff and suppliers/consultants together with
subsequent repayments or retirement. This shall form part of the double entry records.
If it involves suppliers/contractors (see Mobilization Payment)
If it involves staff (see Advance against expenses)
Standard Journal Book

This contains posting journals where transactions cannot be recorded direct from the source
documents to update the general ledger/subsidiary ledger as in cases such as payroll and where
adjustments or reversals of earlier wrong entries or omission are requested to be made, Journal
Vouchers shall be prepared by the Accounts Officer and used as the source of posting to the
ledger. Journal Vouchers shall be submitted to the Accountant for review and approval. The
Accountant shall review the journal voucher for arithmetical accuracy and proper coding. If the
journal voucher is for correction of previous error or misclassification, he/she shall take
necessary action to ensure that future re-occurrence is avoided after approval of the journal
voucher, it shall be referred back to the Accounting Officer who shall cause the Journal Voucher
to be posted. However, this might not be the case with computerized accounting system (Journal
Adjustments should be with the notice of National Coordinator through the Finance Manager).
General Ledger (GL)

This contains separate folio for major expenditure items under each of the categories,
Objectives, Service Delivery Areas, Activities and programs or projects. A Trial Balance will be
extracted annually from the GL.
Register of Statement of Expenses (SOEs)

This contains analysis of the SOEs on a monthly basis. This shall be a memorandum record for
review and control of the SOEs (see Appendix 10).
Stores Records (See Appendix 11)

This shows the in and out movement of store items. The Store Records will serve as a
memorandum record to monitor movements of the store items only. Each transaction shall be
initiated on a source document like invoices, bills, receipts, staff claims, demand notice, bank
pay-in-slip, debit advice, and so on. All the above will be kept posted up to date and presented
for auditing or any other inspection from time to time.
Monthly, Quarterly, Bi-annual and Annual Statements

At the end of every month, quarter, bi-annual and annual the following Statements and
schedules will be prepared for management and relevant committees:
____________________________________________
30
31
▪ Cash Flow Statements or Summary of Sources and Uses of Funds

▪ Uses of funds by Project activity
▪ Statement of Expenditures (SOEs) Schedule
▪ Cash Flow Projections for the following quarter
▪ Bank Account Statement /Reconciliation
▪ Statement of Actual vs. Budgeted Expenditures
▪ Trial Balance
▪ Income and Expenditure Statement
▪ Balance Sheet
At the end of the fiscal year, financial statements as shown above will be prepared. In addition,
the following schedules and statements will be prepared for annual accounts:
▪ Schedules of debtors – Local and foreign,
▪ Schedule of advances,
▪ Schedule of cash and bank balances,
▪ Schedule of local and foreign creditors,
▪ Schedule of funds received by source,
▪ Schedule of fixed assets; and
▪ Statement of expenditure and financing.
Safe Custody of Accounting Records/ Filing Systems

The main objective of a filing system is to ensure that accounting documents are filed in logical
sequence, so as to facilitate retrieval, support financial reports and help to establish a clear audit
trail and provide feedback regarding the accuracy of the financial reports. All accounting records
shall be kept in secured rooms or fire proof locked cabinets when not in use. No accounting
records shall be removed from the room or safe storage facility where they are normally kept,
except for audit or legal purposes. In such cases an official receipt shall be obtained. Accounting
records may however be retained by authorized accounts staff, but a register shall be
maintained to monitor the movement of such records. Separate files will be maintained in the
Finance Department in respect of payment vouchers showing the following details:
▪ Voucher number, (specifying range i.e. from – to - )

▪ Period – (month)
▪ Financial year
▪ Name of Bank Account
▪ Project
All documents in electronic form shall be backed up monthly and copies kept by the Finance
Manager and Accountant on site while another copy are kept at a designated bank and online.
Fireproof safes shall be the means of storing important financial documents.
More information can be accessed in the NEPWHAN back up policy.
31
32
Coding System
NEPWHAN shall establish a coding system where all transactions are posted into an accounting
software whereby easy cross-referencing linked to the physical supporting documentation can
be achieved using budget line, PV/JV sequential numbering and dates (Day, Month and Year) for
easy accessibility for NEPWHAN internal use and external reviewers.
Records must be created, shared and stored in the simplest way possible while preserving their
authenticity, reliability, integrity, usability, information classification and record trail.
Filling Process
NEPWHAN will create a filling shelf where files are tagged, arranged and demarcated in the
following order for easy retrieval and return
1. Project
2. Monthly Folders- PVs & JVs
3. Yearly Folders
4. State Retirements (JVs)
The Finance Officer will be responsible for all filling processes from start to finish .
Record Management
The minimum retention period (Seven years after the date of conclusion of the transaction) this
will be defined in accordance with the applicable national/local laws and specific donor
requirements.
All relevant original legal documents including business registration/licenses, contracts, financial
reports, vouchers including supporting documents and bank documents must be kept in a safe
place. All computer systems (including the accounting software) need to be regularly (daily if
possible) backed up and procedures established to restore data and/or software following any
operational disruption.
The financial transactions are recorded in the accounting system from source documents. These
documents should be standard and should allow for proper control, such as the initiation,
authorization and approval of transactions. The main source documents for the accounting
system are:
• Official Receipt: used to document the receipt of cash and checks;
• Bank Receipt Voucher: used to document the receipt of funds directly deposited to the
bank account;
• Payment Voucher: used to record payment transactions where the mode of payment is
a checks/withdrawal slip;
32
33
• Petty Cash Payment Voucher: used to record the payment of transactions from petty
cash funds;
• Purchase Order: used to record official orders of goods to suppliers or contractors.
NEPWHAN will contract a vendor to scan all relevant documents and the Admin officer is will be
responsible for the backup/Archiving of all scanned document on the cloud.
33
34
05.04 RECONCILIATION OF ACCOUNTS (SEE APPENDIX 12)
There shall be monthly reconciliation between control accounts and the subsidiary ledgers
where detailed accounts are maintained and the memorandum registers. Any unusual account
balances will be investigated and resolved promptly on a monthly basis. Monthly Bank
reconciliation will also be undertaken for all bank accounts. Where a disparity exists, the errors
should be traced by a systematic checking of postings into the ledger accounts or the subsidiary
ledger accounts. Where reconciliation has been successfully carried out for a particular month,
subsequent reconciliation shall become limited to the current postings when tracing errors.
05.05 CHART OF ACCOUNTS

To make sense of financial data, it is essential to be able to code and classify it. A chart of
accounts is a means of coding and classifying accounting data in a way that will promote its use,
lead to better management, and achieve more meaningful accountability. In effect, the chart of
accounts drives what can be achieved from the financial management system.
Moreover, it is the basic information structure for all of the financial systems. It represents an
organizing framework used to budget, record, and report on all financial transactions and
accounts balances.
The codes identify the types of account in terms of the categories in the accounting system, that
is, Program components and categories and also classes represents source of funding. Once
established, the chart of accounts should not be amended lightly. The final decision to alter the
chart should be left to the Finance Manger who shall assess the need of the proposed change.
Once the amendment has been approved by the National Coordinator the amended version of
the chart should be printed and distributed to the Finance Department staff and the Manual of
Accounts should be amended to highlight major changes. The Finance Department shall institute
and accordingly apply and acceptable coding and classification of accounts. This chart of
accounts will maintain the key classification features of activities and sources of funds as spelt
out in Grant Agreements as well as GAAP. (A copy of the chart of accounts is in Appendix 13).
The following are the major considerations in the design:

• General simplicity;
• Ease of reporting major disbursements by Components,
• Ease of reporting Components by disbursement category,
• Ease of capturing Sources and Uses of Funds.
____________________________________________
34
35
CHAPTER SIX
STANDARD ACCOUNTING INSTRUCTIONS
06.01 STORES AND STOCK CONTROL
Receipt of Goods
The Stores Section shall be responsible for:

▪ Receiving goods into the Stores using Store Received Voucher SRV (See Appendix 13) and
issuing of goods using Store Issued Voucher SIV (See Appendix 14).
▪ Recording goods received into a Goods Received Register GRR (See Appendix 15).
▪ Recording each item received into the stores in the Bin cards and continuously updating
it with issues and receipts.
▪ Ensuring that goods/stocks are held in suitable place(s) and under responsible officers
who shall see that they are kept under suitable storage conditions.
Receiving Procedure
In conjunction with the experts on the procured goods, the Stores Section shall examine the
quality and quantity in the presence of the supplier or his representative. The Administrative
department and the Internal Auditor shall be present. The Goods shall be received into the
Stores after inspecting Waybill/Delivery Note and compare with the copy of Local Purchase
Order/contract document and certified that the delivery agrees with purchase order or
procurement specification. The Store Keeper shall sign the Waybill/Delivery Note as evidence of
Delivery/receipt of goods and prepare a Store Received Voucher. The Store Received Voucher
shall be signed by Stores Keeper, the both representatives of the user unit and finance
department cum the Internal Auditor. The Store Received Voucher shall be in triplicate and be
distributed as follows;
▪ Original copy to the Finance Department

▪ Duplicate to procurement department
▪ Booklet copy to be retained in stores
The booklet copy of the Store Received Voucher is used to post into Goods Received Register
(GRR). The Stores Keeper shall arrange the goods into their respective section of the stores,
stacks them and posts quantity/volume received into the Stock Bin Cards (SBC) from the booklet
copy of SRV.
____________________________________________
35
36
Issuing Procedure
These shall be as follows:

▪ Requisitioning unit shall prepare a Store Requisition Note SRN (See Appendix 16) for
stores items and be approved by the designated official.
▪ The stores section shall receive a properly authorized Requisition Note from the user
department.
▪ The designated officer shall issue out the goods based on the requisition and prepares a
Stores Issue Voucher (SIV). The Store Issued Voucher shall be in triplicate as follows:
Original copy to the Requisitioning unit
Duplicate copy to the Finance Department
Triplicate copy retained in the booklet
The Administrative Department shall assign a store keeper who would be in charge of issuing
items out of the store and also account for unused items returned to stores.
Stock Bin Card
Stock Bin Cards will be kept and maintained by the Stores section. Each card will show details of
all receipts including date, name of supplier and quantity and where applicable the consuming
department/unit. The balance of each stock item will be calculated and entered in the Stock Bin
Card after every stock movement.
The Stock Bin Card will have the following features:

▪ Stock Item name
▪ Stock Item code
▪ Stock Item part number
▪ Location
▪ Reorder level;
▪ Maximum stock level;
▪ Minimum stock level;
▪ Unit of measurement
Stock Reports
The Stores Section shall prepare stock report which shall form part of the Financial Monitoring
Report.
Stock Taking
This shall be performed monthly by the store section, supervised by the Admin Officer and
validated by Internal Auditor. Procedure for stock taking:
▪ Identification of personnel involved

▪ Duration of the stock taking exercise must be determined by Administration manager
____________________________________________
32
36
37
▪ Print detailed Stock Taking Form STF (see appendix 17) take into consideration
expired date, draft a stock returned form from project)
▪ Stock Taking Form is submitted to Finance Department for stock evaluation purposes.
▪ Variances will be properly investigated.
06.02 FIXED ASSETS
Fixed Assets Register: Fixed Assets are tangible assets that have been procured, donated, or
constructed and held for use over a period exceeding one accounting year and the value of
which is not below what the accounting policy stipulates (N50,000). Other non-qualifying
expenditure of a capital nature shall be treated as small tools and expended, while a
memorandum account shall be maintained for those assets. Attributable costs (Installation,
Transportation and other costs required to activate the use of the asset) to be capitalized along
with the initial cost of fixed assets shall be in accordance with the applicable accounting
standards as mentioned above.
06.03 MAINTENANCE OF FIXED ASSET REGISTER (FAR)
▪ A Fixed Assets Register shall be maintained by the Administration department and

Internal Auditor for recording all fixed assets procured, donated, or constructed from
NEPWHAN’s fund.
▪ The register shall contain detailed information concerning each asset as contained in
the sample Fixed Assets Register.
▪ The Fixed Assets shall be code-numbered for proper identification as to categories and
location.
▪ The fixed assets register shall be designed to accommodate the additions and
disposals of assets.
▪ A summary of fixed assets shall be extracted from the Fixed Assets Register and form
part of the Financial Monitoring Report and financial statements.
▪ All assets shall be tagged by Administration Department and Internal Auditor with
asset identification number, while movable assets such as vehicles will carry the
imprint of NEPWHAN.
06.04 PROCEDURE FOR MAINTENANCE OF FIXED ASSET REGISTER
▪ The Administration Manager shall scrutinize the Payment Voucher files and extract
details relating to the purchase or acquisition of assets into Fixed Asset Register
Update Form FARF (see appendix 17)
▪ The invoice value of the fixed asset item shall be compared by the accountant with the
contract documents and Fixed Asset Register Update Form to ensure compliance and
proper classification.
▪ Where joint costs (e.g. custom duties, insurance, freight and other incidental costs)
are incurred, the Administration Manager shall apportion them to the specific assets
acquired, using value as the basis of apportionment.
____________________________________________
37
38
▪ The Accountant shall review the total cost of the assets and pass to the Internal
Auditor for processing and ensure that appropriate entries are made in the Fixed Asset
Register. A separate file shall be maintained for all Fixed Asset Register update Form.
▪ The Finance Department shall obtain the distribution or location list of the assets from
the Administration Department.
DEPRECIATION OF FIXED ASSETS

Fixed assets shall be depreciated according to NEPWHAN’s Policy on fixed asset depreciation the
following rates will be used:
Motor Vehicles 25%
Equipments 20%
Furniture and Fittings 20%
Plants and Machinery 10%
Building 2%
DISPOSAL OF FIXED ASSETS

The Administrative Manager shall conduct a periodic assessment of all NEPWHAN assets. When
equipment is found to be beyond repair, or is out dated or has exceeded its useful life, the
equipment shall be evaluated by Internal Auditor along with the finance unit and turned over to
the administration unit for disposal. The final approval for disposal or distribution shall rest with
the Management Board.
Once removed, the equipment is gathered in a central area, the required equipment and
property activity form filled.
FIXED ASSET ENUMERATION
▪ Annually the Finance Manager through the Accountant shall issue guidelines for
enumeration of fixed asset being carried in the books of NEPWHAN.
▪ Designated Officers shall conduct a physical verification exercise of all fixed assets at
least twice in a year and supervised by the Internal Auditor to ascertain the existence,
custody, and general status of the fixed assets.
▪ The result of the stock verification exercise shall be reconciled with the balances in
the Fixed Asset Register and Fixed Assets Ledger, and differences, if any, will be
investigated and reconciled.
▪ Necessary correcting entries shall, thereafter, be made in the necessary books.
▪ At the end of the exercise, Management should be advised with respect to the status
of Fixed Assets in the organization, with a recommendation of disposal or otherwise.
ASSET REVALUATION
Management shall engage the services of a professional value to carry out revaluation of
NEPWHAN fixed asset at the interval of every three (3) years. Post revaluation reports shall be
submitted to NEPWHAN management for further planning and decision making.
____________________________________________
38
39
06.05 FINANCIAL MONITORING REPORTS

Financial Monitoring Reports (FMR) are intended to assist in managing and monitoring the
NEPWHAN’s activities. It should provide information that will be useful to the stakeholders. Financial
Monitoring Reports should comprise of:
▪ Financial Reports
▪ Physical Progress Reports
▪ Procurement Reports
▪ Personnel Reports
FINANCIAL REPORTS
This must include a statement showing:-
▪ Cash Flow Statements or Summary of Sources and Uses of Funds
▪ Uses of funds by Project activity
▪ Statement of Expenditures (SOEs) Schedule
▪ Cash Flow Projections for the following quarter
▪ Bank Account Statement /Reconciliation
▪ Statement of Actual vs. Budgeted Expenditures
▪ Trial Balance
▪ Income and Expenditure Statement
▪ Balance Sheet
These reports shall be produced and submitted by Finance Department through the National
Coordinator.
PHYSICAL PROGRESS REPORTS

This must include:
▪ Narrative information and output indicators linking financial information with physical
progress of Programs, Project and Activities.
▪ Highlight of issues that require attention.
▪ The Senior Programme Manager, the Programme Manager or Program Officer shall
collate relevant information for the generation of the reports for onward submission to
Management through for further planning and decision making.
PROCUREMENT REPORTS:
Separate tables should be used to provide information on the following;
▪ Procurement of Goods
▪ Procurement of Services
▪ Selection of Consultants
▪ Procurement for Training
The Procurement Officer shall submit a report showing status of Local Purchase Order LPO (See
Appendix 18)/Contract documents and un-serviced purchase requisition to Admin Manager who shall
forward same to Management for planning and decision making through the National Coordinator.
The reports should compare actual procurement performance against the work plan agreed for the
period under consideration among other things.
____________________________________________
PERSONNEL REPORT
39
40
This must include:

▪ Staff cost Report (Salary-related costs)
▪ Staff cost (Training, Medical, Pension contribution, e.t.c.)
▪ Staff Enumeration Report
▪ Leave Report (Casual, Sick, Annual, Study, Maternity, leave of absence)
▪ Monthly Summary of individual Time Sheet Report
These reports shall be prepared and submitted by Administration Department to management

through the National Coordinator.
MANAGEMENT INFORMATION SYSTEM
These reports are designed to assist in managing, monitoring, evaluating and controlling. They
comprise Financial Reports, Physical Progress, Procurement Management and Personnel
Reports. The Monitoring Report comprises the following:
Program Financial Reports

Report Description Relevance Relevant
No. Office
1A Uses of funds by Program, States expenditure by activities, Finance
Project and/or Activity Programs and or Projects Department
1B Budget Report Provide expenditure by disbursement Finance
categories and funding sources Department
comparing actual, budget and extracting
the variances.
1C Cash flow Statement for the Provide cash flows and disbursement Finance
Month/Quarter for the period on monthly and or Department
quarterly basis, year to date comparing
with last period actual and forecast for
next two quarter.
1D Bank Account Statement Shows the movement in the Bank Finance
Accounts. Department
1E Balance Sheet Gives the periodic position of assets, Finance
liabilities and funding of NEPWHAN Department
1F Disbursement by Summarizes by disbursement Finance
funding source and categories, the current period’s Department
categories expenditures showing the amount of
eligible expenditures
IG Income and Expenditure Summarizes all income/funds received Finance
Statement and total expenditure for period stated Department
1H Cash Forecast Summarized forecast total expenditures Finance
and eligible expenditures by categories Department
and funding source.
____________________________________________
NEPWHAN FINANCIAL POLICY AND PROCEDURES
REVIEWED,
40
41
41
42
PROGRAM PROGRESS REPORT

No. Office
2A Quarterly Program, Project Gives activity cost data Program
or Activity Completion and Department
Inspection Report
2B Quarterly Work In Progress Shows cost of Programs or activities Program
Report not completed Department
2C Completed Program or States valuation to completion
Program
activity Report quarterly comparing with budget and over or Department
under expenditures /Finance
Dept
2D Quarterly Program or Gives percentage of physical Program
activity Status Report completion and comparing actual cost Department
with budget /Finance
Dept
PROCUREMENT MANAGEMENT REPORT

No. Office
3A Procurement Process Provides details of the status of Procurement
Monitoring procurement Office
Personnel Management Report

No. Office
4A Quarterly Staff cost Report Provides details of the total staff Administratio
(Salary-related costs) salary costs. n
Department/
Finance Dept
4B Quarterly Staff cost Provides details of the total cost of Administratio
(Training, Medical, Pension staff training, Medical and Pension n
contribution, e.t.c.) contributions Department/
Finance Dept
4C Quarterly Staff Enumeration Provides details of staff strength for Administratio
Report the reporting period n Dept
4D Quarterly Leave Report Provide details of leave granted to Administratio

(Casual, Sick, Annual, Study, staff n Dept
Maternity, leave of absence)
4E Monthly Summary of Provides details of total hours Administratio
individual Time Sheet Report worked by each staff for the month. n Dept
____________________________________________
42
43
METHOD OF PREPARATION
The management information reports will largely be generated from the computerized
accounting system. However some information would be extracted from sundry sources for
completing the Performance Monitoring Reports (PMR) by the relevant officials.
Monthly reports will be prepared and distributed before the following month, while quarterly
reports will not exceed the end of proceeding month. The annual reports shall be prepared and
distributed after one month of the preceding year. All financial report and Program Progress
reports are prepared latest 3rd week after the month ends and after the approval of the
National Coordinator and submitted to the Management board every quarter, all necessary
reports can now be submitted to the stakeholders if required
06.05 INTERNAL CONTROL AND INTERNAL CONTROL SYSTEMS

An Internal Control Process will be implemented by the National Coordinator to ensure that the
objectives of NEPWHAN are met in order to achieve:
▪ Effectiveness and efficiency of operations;

▪ Reliability of financial and operational reporting;
▪ Compliance with applicable laws and regulations; and
▪ Transparency of operations to stakeholders and beneficiaries.
The internal control structure of NEPWHAN will have the following elements:
▪ The information system;
▪ Control procedure;
▪ The control environment; and
▪ Risk assessment and monitoring.
The Information System

Transactions will remain the major focus of the information system as they comprise exchanges
of assets and services between NEPWHAN and third parties and the transfer or use of assets
within the Program and activities.
A major focus of controls in the information system will therefore ensure that transactions are
initiated and processed in a way that prevents misstatements and promotes transparency and
credibility. NEPWHAN’s information system will therefore:
▪ Identify and record all valid transactions that occurred in the current period of reporting;
▪ Ensure that recorded assets and liabilities are the result of transactions that produced
rights to or obligations for those items;
▪ Measure the value of transactions in a way that allows their accurate monetary value to
be recorded;
▪ Capture sufficient detail of all transactions to allow their proper presentation in the
financial report;
____________________________________________
43
44
▪ Provide timely, accurate and relevant information to management for efficient program
or activity implementations;
▪ Ensure effective communication between NEPWHAN and donors, other partners and
stakeholders.
The Finance Department of NEPWHAN shall provide: A complete audit trail for each transaction.
Evidence that connects account balances and other summary results with original
transaction data through:
Proper coding
Appropriate cross references, and
Adequate documentation.
CONTROL PROCEDURE
▪ Control procedure will be established to ensure, as far as possible, that NEPWHAN’s
overall objectives are achieved. Control procedure shall include general (where the
system is computerized) and/or applications controls including proper authorization,
appropriate documentation and independent checks; segregation of duties, physical
controls and performance reviews.
▪ Authorization procedure shall ensure that all transactions are authorized by staff acting
within their limits of authority.
▪ Documents and records shall have reference to the source documents, which provide
evidence that transactions occurred, and the applicable price, description and terms are
captured.
▪ Documents and records will be pre-numbered to maintain control and accountability and
be designed to ensure that they capture all relevant information and authorizations.
▪ On completion of processing, all NEPWHAN’s financial documents and records shall be
filed in an orderly manner.
▪ Duties within the Finance Department would be segregated to ensure checks and
balances.
▪ Signatories to NEPWHAN’s Bank Accounts must compare the amounts on cheques
prepared with amounts on supporting documents before signing the cheques.
▪ Supporting documents and Payment Vouchers must be initialed by the Signatories as
evidence of performance of independent checks.
▪ The Internal Control Checklist (See Appendix 19) will be used by management as a guide
for assessing the adequacy of the Internal Control System.
RISK ASSESSMENT AND MONITORING.

To provide reasonable assurance regarding the achievement of NEPWHAN’s objectives, risk
management and monitoring will focus on:
▪ Program or activity management and other personnel,
▪ Strategy setting and Program or activity Implementation,
▪ Potential events that may affect the Program or activity, and
▪ Risks tolerance level assessment
____________________________________________
44
45
06.06 AUTHORISATION AND APPROVAL LIMIT
▪ In order to achieve effective control; expenditure on behalf of NEPWHAN shall be

authorized only by the National Coordinator.
▪ The Internal Auditor and the Financial Manager has the responsibility for ensuring that
the various authority limits are adhered to. She/he shall review these limits
periodically and recommend appropriate changes to management Board through the
National Coordinator.
▪ Officers who are authorizing or approving any document shall ensure that the
documents presented and the relevant attachments are in order and conform to the
established procedure of NEPWHAN. Officers are not permitted to authorize or
approve expenditure relating to them. Where expenditure affects an officer, she/he
shall obtain the approval of a superior officer, or that of the Finance Manager/
National Secretary.
Delegated Authority
Where an authorized officer has delegated his powers to a subordinate officer, s/he nevertheless
remains responsible for the efficient performance of the delegated authority. Management can
also delegate authority to a junior staff in the absence of a superior officer in writing.
Specimen Signature
Specimen signatures and names of officers authorized to sign Vouchers and other security
documents will be made available to the Finance Manager and appropriate staff responsible for
processing payment vouchers. All payment vouchers, which shall precede the payment of
cheques and cash, shall be authorized by the National Coordinator. An officer may not make
payment against a voucher unless:
1) It is properly signed, authorized and approved for payment by the appointed signatories;
2) It bears the appropriate classification and accounts code/name;
3) All computations have been properly checked and confirmed as such.
Authorization and Approval Schedule
The authorization and approval limits for various documentations and processes are the
responsibility of the Management Board. No expenditure shall be authorized until the necessary
clearance is obtained by the Heads of Department/ budget holders to confirm that the
expenditure is within the approved budget and activity plan.
____________________________________________
45
46
06.07 AUDIT ARRANGEMENTS

Internal Audit Function
NEPWHAN’s activities would be reviewed by the Internal Auditor (IA), who is INDEPENDENT of
the Finance Department and any other department for that matter. The internal audit function
shall ensure the orderly and efficient conduct of operations including, among others:
▪ adherence to NEPWHAN’s policies
▪ adherence to rules and regulations
▪ safeguarding of assets
▪ prevention, detection and reporting of errors and irregularities
▪ Promoting the accuracy and reliability of the accounting records
The IA should work within a well-defined framework of programs and reporting requirements.
Importantly, the internal audit function should complement NEPWHAN’s monitoring and
evaluation system. The internal audit program for each year should be developed by the internal
auditor and discussed with the National Coordinator and management board. The Internal
Auditor will carry out both the traditional compliance audit and the non-financial or operational
audit.
Compliance Audit
Internal audit is a control function that evaluates the adequacy and effectiveness of other
controls as a basis for improving managerial performance. The scope of the internal audit should
be to evaluate the adequacy and effectiveness of the organization’s system of internal control
and the quality of performance in carrying out assigned responsibilities. In an attempt to
overcome the issue of independence and any undue interference which may jeopardize the
objectivity of his/her work, Internal Auditor shall report to the Management Board but with
copies of his/her quarterly reports address to the National Coordinator. The following measures
shall be put in place:
A statement of purpose, authority and responsibility for the internal audit unit:
▪ Detailed work-plans to carry out the responsibilities of the internal audit function with
appropriate emphasis on identified risks;
▪ Written policies and procedure to guide audit staff;
▪ A program for the coordination of internal and external audit exercises; and
▪ A quality assurance program to evaluate the operations of the internal audit function.
NEPWHAN’s Monitoring and Evaluation systems

As NEPWHAN become more decentralized with increased delegation of authority, operational
auditing or monitoring and evaluation becomes a more valuable and critical tool for improving
the delivery of services being provided. NEPWHAN’s monitoring and evaluation systems shall be
a systematic process of evaluating effectiveness, efficiency and economy of operations under
management control, and reporting the results of the evaluation along with recommendations
for improvement. In essence the procedure:
____________________________________________
46
47
▪ Appraises the economy and efficiency with which resources are employed; and
▪ Reviews NEPWHAN’s operations or programs to ascertain whether results are
consistent with established objectives and goals and whether the operations or
programs are being carried out as planned.
▪ Impact of NEPWHAN’s operations on end users.
▪ Internal Auditor shall ensure that all departments are working in compliance with
relevant policies and procedure to achieving set goals and objectives of the
organization
External Audit and External Auditors
NEPWHAN will have its financial statements audited each year and that they are in accordance
with acceptable standards. Examples of these standards are the International Standards on
Auditing (ISA) published by the International Federation of Accountants (IFA) and Auditing
Standards issued by the International Federation of Accountants (IFA). The use of independent
audit firms should be promoted, and every effort should be made to appoint auditors who fulfill
the criteria required by the International Standards on Auditing. Audit scope and guidance can
be obtained in Appendix 16: Donor and partners Agreement Document. While the Terms of
Reference provides the opportunity for drawing Special attention to areas of concern that may
not be covered or emphasized during a normal audit, such as compliance with Grant
agreements, and the special review of procurement documents, International Standards on
Audit and the standards of Nigeria’s professional auditing organizations suggest that the auditor
determines the scope of the audit of financial statements in accordance with requirements of
legislation, regulations, and generally accepted auditing standards.
Accordingly, the Terms of Reference must not restrict the auditor’s obligations with respect to
such requirements. In other words, the auditor will not be allowed to claim in the event of poor
performance that the Terms of Reference prevented him or her from performing to statutory,
regulatory or professional requirements. The scope of the audit should always include the
requirement to give an opinion on NEPWHAN’s specified financial statements.
The Auditor’s Formal Contract

The auditor’s formal contract shall set out the responsibilities of the auditor. The contract shall
include:
▪ Confirmation of acceptance of the appointment including the Terms of Reference;
▪ Management’s responsibilities, particularly in the preparation of financial statements;
▪ Access to premises and documents the auditor may require;
▪ The form of audit report
▪ Arrangements regarding the involvement of internal auditors, other external auditors
and any other financial consultants of NEPWHAN. The expected date the audit report
will be issued.
▪ The basis on which fees are determined, and billing arrangements.
____________________________________________
47
48
Term of appointment of Auditors

There shall be only one audit firm appointed for NEPWHAN who shall have the responsibility for
auditing all Programs, projects and activities irrespective of sources of funding. An Audit firm
shall be appointed before the end of the fiscal year by the Management Board.
Scope of Audit
In addition to complying with donor requirements, annual audits need to comply with
government requirements and any other terms agreed between donors, partners and
NEPWHAN. Annual audit report shall include:
1) An assessment of the adequacy of the accounting and internal control systems;

2) Whether NEPWHAN has maintained adequate documentation on all relevant
transactions;
3) Verification as to whether expenditure documented to each funding source are
allowable or unallowable expenditure;
4) A separate opinion as to whether the financial statements of NEPWHAN gives a true
and fair view of it’s financial position;
5) A management letter from the auditor which evaluates overall management
performance within the audit period.
Timing of submission of audit reports
➢ The submission of audited financial statements shall not be later than six months after
the end of the fiscal year.
➢ Audit firm contracted should start and submit the annual audited financial report three
months after the audit has been conducted.
06.08 ADDITIONS, DELETIONS AND AMENDMENTS

Any main section or sub-section of this Financial Procedure Manual may be amended if the need
arises, subject to the recommendation of the Finance Manager in consultation with the IA and
NEPWHAN Management Board. The Chief executive Officer/National Coordinator shall approve
such changes before they can be affected.
07.00 OVERHEAD APPORTIONMENT/COST SHARING

The following bases guide the apportionment of joint cost, where the organization has more
than one project in operation.
Description Base
Rent and tenement rate No of staff
Internet subscription No of eligible staff
Vehicle fueling No of vehicles/user project
Office maintenance Rational among projects
Copier toner and other maintenance Rational
Stationery Rational
____________________________________________
48
49
LIST OF APPENDIXES
No Name Acronym
1 Cheque Payment Voucher CPV
2 Cash Advance Requisition Form CARF
3 Contractor/Supplier Invoice Voucher CSIV
4 Cash Reimbursement Requisition Form CRRF
5 Petty Cash Voucher PCV
6 Petty Cash Reimbursement Statement PCRS
7 Fixed Assets Register FAR
8 Journal Voucher JV
9 Cheque Issue Register CIR
10 Register of Statement of Expenses RSOE
11 Store Record SR
12 Bank Reconciliation Statement BRS
13a Store Received Voucher SRV
13b Chart of Account COA
14 Store Issued Voucher SIV
15 Goods Received Register GRR
16 Store Requisition Note SRN
17a Fixed Assets Update Form FAUF
17b Stock Taking Form STF
18 Local Purchase Order LPO
19 Internal Control Checklist ICC
20 Interbank Fund Transfer Voucher IBFTV
21 Cash Advance Retirement Form CARAF
____________________________________________
49
50
50

NEPWHAN Financial Policy and Procedure 2021

Uploaded by

Copyright:

Available Formats

NEPWHAN Financial Policy and Procedure 2021

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

NEPWHAN Financial Policy and Procedure 2021

Uploaded by

Copyright:

Available Formats

1

NETWORK OF PEOPLE LIVING WITH HIV AND AIDS IN NIGERIA

FINANCIAL POLICY AND PROCEDURES MANUAL

Reviewed November, 2021

2. ACCOUNTINGS FOR RECEIPTS AND PAYMENTS 21

3. FIXED ASSETS AND LEDGER 27

To support the mission, NEPWHAN is committed to:

Office Operations Policy

Standards of Ethical Conduct

01.02 PURPOSE OF THE FINANCIAL POLICY AND PROCEDURE MANUAL

Other uses of the manual include:

01.03 INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS

A Finance Department will establish appropriate financial management to ensure that:

▪ The financial information required by and other stakeholders are prepared

The Finance Department will amongst other things:

The Accountant who will be reporting to the Finance Manager;

▪ Prepayments/Advances and General Accounting: This entails recording of all

01.04 RELATIONSHIP BETWEEN MANAGEMENT AND FINANCE DEPARTMENT

01.05 FINANCE DEPARTMENT ORGANIZATIONAL CHART

01.06 FINANCIAL MANAGEMENT COMMITTEE

ACCOUNTING PRACTICES AND POLICIES

02.02 RESPONSIBILITY FOR ACCOUNTING POLICIES

02.03 THE ACCOUNTING SYSTEMS

The Finance Department’s Accounting Systems shall be based on a rational combination of

▪ Prudence - Adequate restraint will be exercised in the determination of income to be

03.01 NEPWHAN’S ANNUAL BUDGET:

03.02 BUDGETING AND BUDGETARY CONTROLS

03.04 BUDGETING PROCESS

03.05 PAYMENT PROCEDURE AND WITHDRAWAL OF FUNDS:

The following steps are adhered to before payments are made:

All payment shall follow the following processes;

Report based payment arrangement

03.06 FLOW OF FUNDS

03.07 FUNDS DISBURSEMENT

Accounting Implication shall be:

03.08 BANKING ARRANGEMENTS

Category A shall be the National Coordinator

Signing of blank cheque is prohibited.

Unused booklets shall be kept in a safe custody by the Finance Manager.

03.10 BANK RECONCILIATION AND FINAL ACCOUNTS

ACCOUNTING FOR RECEIPTS AND PAYMENTS

04.01 CASH MANAGEMENT AND ACCOUNTING

The main features of the accrual systems are as follows:

04.02 NEPWHAN EXPENDITURE

04.03 MODE OF PAYMENT

Sub Recipient Related Payments

Other NEPWHAN Related payments

All payments shall be made by online bank transfers and cheques.

Advances against Expenses

Procedure for State Advance

When the advance is taken

When the advance is being retired

Payment against expenses

04.03 MOBILIZATION PAYMENTS

Advance Payment Guarantee (APG):

Accounting Implication, where deduction of retention fees is involved:

04.05 PERSONAL REIMBURSEMENTS

04.06 PETTY CASH

PROCEDURE FOR PAYMENTS FROM THE PETTY CASH FLOAT: