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FINANCIAL MANAGEMENT SYSTEMS MANUAL - DRAFT
FEBRUARY 2005
WATER SERVICES TRUST FUNDWATER SERVICES TRUST FUND
PWC
FINANCIAL MANAGEMENT SYSTEMS MANUAL - DRAFT
FEBRUARY 2005
WATER SERVICES TRUST FUNDWATER SERVICES TRUST FUND
PWC
MMIINNIISSTTRRYY OOFF WWAATTEERR AANNDD IIRRRRIIGGAATTIIOONN
TABLE OF CONTENTS
Page
1 Introduction .................................................................................................................1
1.1 Background.........................................................................................................1 1.2 Purpose of the Financial Management Systems Manual (FMSM) ............1 1.3 Structure of the Financial Management Systems Manual ..........................1
2 Financial Regulations and Policies......................................................................5 2.1 Financial regulations .........................................................................................5 2.2 Objectives of the accounting and reporting systems ...................................5 2.3 Significant accounting policies .........................................................................5 2.4 Policies ................................................................................................................5
3 Reporting, Structure of Accounts and Analysis Codes..................................8 3.1 Purpose...............................................................................................................8 3.2 Reports and data analysis requirements .......................................................8 3.3 Chart of accounts .............................................................................................11
4 Systems – to be inserted once Financial Management System is selected......................................................................................................................13
5 Budget Preparation Procedures..........................................................................14 5.1 Budget preparation procedures.....................................................................14 5.2 Annual estimates .............................................................................................14 5.3 Data Flow Diagram ..........................................................................................16
6 Cash Management...................................................................................................20 6.1 Purpose.............................................................................................................20 6.2 Receipt of money and recording of funds....................................................20 6.3 Payment procedures .......................................................................................20 6.4 Authorisation of payment for goods, works and services ..........................21 6.5 Bank and banking arrangements ..................................................................21 6.6 Cash flow forecast and investment of excess funds ..................................22 6.7 Data Flow Diagram (DFD) and Data Processing Instructions (DPI) ........23
7 Petty Cash Control Procedures...........................................................................28 7.1 Purpose.............................................................................................................28 7.2 Policy .................................................................................................................28 7.3 Description ........................................................................................................28
8 Travel and Activity Imprests.................................................................................34 8.1 Purpose.............................................................................................................34 8.2 Policy .................................................................................................................34 8.3 In country- out of station allowance ..............................................................34 8.4 Out of country subsistence allowance..........................................................34 8.5 Application for travels and activities imprests .............................................34
9 Payroll Procedures..................................................................................................39 9.1 Purpose.............................................................................................................39
9.2 Policy .................................................................................................................39 9.3 Description ........................................................................................................40
10 Fixed Assets System..............................................................................................43 10.1 Purpose.............................................................................................................43 10.2 Policy .................................................................................................................43 10.3 Data Flow Diagram (DFD)..............................................................................45
11 WSTF Accounting and Reporting Procedures................................................50 11.1 WSTF accounting policies ..............................................................................50 11.2 Reporting and data analysis requirements ..................................................50 11.3 Reports from benefic iaries and preparation of consolidated reports .......53 11.4 Project auditing arrangements .......................................................................53
APPENDIX 1: Structure of Accounts............................................................................54 APPENDIX 2: Accounting Forms ..................................................................................58 APPENDIX 3: Reporting Forms .....................................................................................71
PricewaterhouseCoopers Water Services Trust Fund 1 Financial Management Manual (Draft)
List of Abbreviations and Acronyms CB Cas h Book CBO Community Based Organisation CEO Chief Executive Officer CV Curriculum Vitae FMSM Financial Management Systems Manual GoK Government of Kenya GRN Goods Received Note LPO Local Purchase Order MTEF Medium Term Expenditure Framework MWI Ministry of Water and Irrigation NGO Non-Governmental Organisation PCV Petty Cash Voucher PS Permanent Secretary PV Payment Voucher WSTF Water Services Trust Fund
PricewaterhouseCoopers Water Services Trust Fund 1 Financial Management Manual (Draft)
1 Introduction
1.1 Background The Water Services Trust Fund (WSTF) was set up under The Water Act 2002 as a mechanism for financing the provision of water and sanitation services to inadequately served areas. WSTF will manage funds received from the Government of Kenya (GoK), donations, grants and bequests from sources as outlined in the Act.
The objectives for which the Trust Fund was formed are:
• Providing financing and other support towards capital investment costs of providing water services to communities without adequate water services; Capacity building activities and projects which enable communities to plan, implement, manage, operate and sustain water services; The creation of awareness and dissemination of information regarding community management of water services; and Active community participation in the implementation and management of water services.
• Providing a mechanism for managing funding systems whose objective is to fund activities within the Water sector generally as may from time to time be assigned to it to manage.
1.2 Purpose of the Financial Management Systems Manual (FMSM) The p urpose of this manual is to provide a comprehensive documentation of the WSTF’s accounting and reporting procedures. It will be used as follows:
• as a training resource for staff either new or redeployed to the WSTF
• as reference material by existing staff in performance of financial management tasks
• by management and trustees of the WSTF in ensuring compliance with WSTF financial management policies and procedures
• by auditors, consultants and development partners who want to understand and/or evaluate WSTF’s financial management systems
1.3 Structure of the Financial Management Systems Manual The Financial Management Systems Manual (FMSM) is organised under three main sections as follows:
l The introduction
l Procedures and documentation
l Appendices
1.3.1 Procedures documentation
The procedures are grouped into a number of sections. In each section the following is provided:
PricewaterhouseCoopers Water Services Trust Fund 2 Financial Management Manual (Draft)
l Purpose of the procedure and significant policy statements (where applicable)
l Description of the procedure
l Data flow diagrams and detailed instructions for the procedure
1.3.2 Appendices
The appendices to the Financial Management Systems Manual include:
l Accounts Structure
l Accounting forms
l Sample of Financial Reporting Forms
1.3.3 Flowchart Symbols Used
Connector
Process
Document
Decision
Computer Interface
Printer
File
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1.3.4 How to use the manual
The manual is organised in sections of specific relevance to minimise the need for reference. For example, staff concerned with imprests may need only to read that section, while the finance staff may need to read the whole manual.
1.3.5 How to maintain the manual
The Finance Manager will be directly responsible for the update of this FMSM. However, all users may initiate improvement and changes. The FM will be responsible for ensuring that:
l Amendments to the manual are properly authorised and controlled
l The manual is kept up to date
l Sufficient copies are appropriately distributed in a timely manner.
l A change to the procedures manual could be prompted by:
− A change to existing procedures
− A deletion of existing procedure
− Addition of new or previously omitted procedure.
1.3.6 Distribution of the manual
A record of the holders of the manual showing the holder and the number of the manual shall be maintained.
1.3.7 Financial management and reporting
The principal sources of funding to WSTF are the Government of Kenya (GOK), development partners and other funding agencies and individuals. These sources have varying reporting requirements, all of which have to be met if maximum co-operation from all stakeholders is to be sustained.
To achieve this reporting WSTF has developed financial management systems manual to capture transactions at all levels. The accounting system is central and flexible enough to meet GOK and other development partners accounting and reporting requirements.
For the efficient conduct of the affairs of the WSTF the finance function will be organised as shown below:
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Basic organogram of the finance function
The Finance Department headed by a Finance Manager supported by accountants provides regular financial management skills support to implementing bodies. It is responsible for financial reporting and finance mobilization strategies.
The Finance Department also supports the implementing institutions in their strategy formulation, planning and budgeting. It is also be responsible for all the WSTF financial operations and management and cash flow forecasts that will be used for request for disbursement from development partners and other contributors to WSTF.
Finance Manager
Assistant Accountant /
Cashier
Procurement Officer
Internal Auditor
CEO
Financial Accountant
Management Accountant
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2 Financial Regulations and Policies
2.1 Financial regulations The FMSM addresses the following GoK regulations:
i. WSTF will be guided by the Trustees Act of the Laws of Kenya
ii. WSTF will strictly adhere to the requirements of the Public Audit Act, 2003 and the Exchequer and Audit Act (CAP, 412), Laws of Kenya;
iii. The Financial Year of the Fund shall be the period of twelve months commencing 1 st July to 30th June of the following year;
2.2 Objectives of the accounting and reporting systems The objectives of WSTF FMSM procedures are to:
• Provide accurate, complete, reliable and timely financial information to management to facilitate informed and timely decision-making
• Ensure effective control and security, and efficient utilisation of resources
• Provide reports to the GoK, donors and other stakeholders in accordance with agreed content, format and reporting period
2.3 Significant accounting policies WSTF will observe accounting practices acceptable to the Government of Kenya and where appropriate, specific accounting policies and reporting requirements as set out in the Memorandum of Understanding between the Trustees and the Donors.
It is a going concern that will report its activities and financial transactions over specified periods on the basis of generally accepted accounting practices. These will be modified as appropriate to address the requirements of the GoK and development partners.
2.4 Policies 2.4.1 Historical cost
Transactions shall be recorded at historical cost i.e. the exchange price on the date of the transaction.
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2.4.2 Modified accrual accounting
Under the accrual concept revenue is recognized when earned and expenditure when incurred. WSTF will apply this principle as follows:
Revenue recognition
Revenue is recognized when funds are received both from the Government, other donors and other sources.
Expenditure recognition
Expenses will be recognised when incurred even though payment may not have been made.
2.4.3 Consistency
Consistent accounting methods will be applied and changes made will be reported and the effect on reported results disclosed in accordance with Generally Accepted Accounting Principles (GAAP).
2.4.4 Foreign currency transactions
The accounts of WSTF will be maintained in Kenya Shillings. Transactions denominated in foreign currency will be converted into Kenya Shillings as follows:
• transactions, including grants and donations received, which are expressed or denominated in a foreign currency will be converted into Kenya Shillings at the market exchange rate prevailing at the date of each transaction,
• foreign currency assets and liabilities will be converted into Kenya Shillings at the exchange rates prevailing at the balance sheet date, and
• exchange differences arising from the conversion of foreign currency balances will be dealt with through the income and expenditure statement.
2.4.5 Reporting in foreign currencies
Financial statements may be translated into a relevant foreign currency for donors who require such reports.
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In this case:
• transactions and balances which are denominated in foreign currency or expressed in foreign currency shall be shown in the relevant foreign currency.
• all other income and expenditure in Kenya Shillings should be translated into the relevant foreign currency using the average exchange rate obtained from the exchange of the foreign currency during the period, and
• all assets and liabilities will be translated into the relevant foreign currency at the exchange rate prevailing as at the balance sheet date or reporting period.
2.4.6 Fixed Assets
Fixed assets are defined as all tangible assets with a life of three years or more and having a minimum value of Kshs 50,000 either individually or collectively. This may be reviewed and revised by Management as necessary. Fixed Assets will be capitalised, inventoried and controlled individually by assigning tag numbers and maintaining a detailed register combined with periodical physical checks.
2.4.7 Depreciation
The straight-line depreciation method will be used. This will allocate the cost of the depreciable asset uniformly over its expected useful life. The annual depreciation will be based on the full acquisition cost of the depreciable asset, net of its salvage value, as applicable. The rate will apply from the year of acquisition until it is disposed of/written off or until it is fully depreciated, whichever occurs first.
A set of office furniture purchased at a single point in time should be considered an asset for depreciation, even if individual items cost less than the minimum value for categorisation as an asset.
2.4.8 Stocks and stores (inventories)
Stocks will be valued at the lower of cost or net realisable value. Cost will comprise expenditure incurred in the ac quisition of these items.
Items in the stores will be tagged and their usage controlled through the use of store movement cards.
2.4.9 Funds disbursed to Projects
Funds disbursed to various water projects will be recorded as payments in WSTF accounting records. These payments will however need to be fully accounted for and supported with expenditure and project reports.
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3 Reporting, Structure of Accounts and Analysis Codes
3.1 Purpose The purpose of the structure of accounts or a chart of accounts and analysis codes is to provide a framework for capturing and grouping data in a manner that will facilitate generation of the required reports. Its design depends on:
• The reporting requirements of the organization
• The accounting software on which the systems are based.
Below are the main procedures in the maintenance of the structure of accounts.
3.2 Reports and data analysis requirements
Formats of the required financial reports and management reports are provided in Appendix 3. To efficiently produce these reports, the accounting transactions need to be analysed in a number of ways, including:
• Expenditure categories and sub-categories
• Components and activities
• Source of funds
• Geographical location of projects
• Time frame – date and periods
• Cost centres
• Specific technology applied in water supply interventions
These dimensions of analysis are captured by a combination of both account and analysis codes. Brief descriptions of these dimensions are provided below.
3.2.1 Dimension 1: Expenditure categories and sub-categories
The expenditure categories for the WSTF will follow categories that will assist management control expenditure. The main groups are as follows:
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The following will be the 3 main expenditure categories, from which other sub -categories may follow:
• Office Expenses
• Disbursements to Projects
• Project Management and Capacity Building Expenses
Office Expenses:
These would include those costs specifically incurred at the head office or any other WSTF offices and arising from office operations. A number of these expenditure sub-categories would include:
• Personnel emoluments • Motor Vehicle Expenses • Travel and Accommodation • Utilities • Telephone and Postal Expenses • Insurance (Non -Motor) • Board Expenses • Office Running Expenses • Staff Training Costs • Staff Expenses • Consultancies • Advoca cy and Advertising • Printing and Stationery • Bank Charges
Disbursements to Projects
These are those funds disbursed to projects which have been approved based on procedures outlined in the WSTF Operations Manual. Projects receiving funds will then be grouped into the following sub-categories based on the nature of the intervention:
• Water Supply Systems – including piped-gravity and piped-pumping schemes, open ducts, boreholes, shallow wells, rain water harvesting (rain water catchment), dams, pans etc
• Sanitation and Hygiene Promotion
• Training and Capacity Building
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Project Management and Capacity Building
This category includes expenses incurred in supervision and co -ordination of implementation of projects which are ongoing at project sites. As the funded projects are envisioned to be demand driven, these expenses will be those incurred in backstopping by technical staff from the head office and would include:
• Travel and Accommodation
• Vehicle running and maintenance costs
• Printing, photocopy and stationery
• Consultancy services for 3 r d parties to carry out the supervision and co-ordination activities where deemed appropriate by WSTF management
3.2.2 Dimension 2: Components and activities
WSTF was formed for the purpose of providing financing and other support towards the capital investment costs of providing water services to communities without adequate water services and to provide a mechanism for managing funding systems whose objective is to fund activities within the water sector.
The key components and priority areas that WSTF will be engaged in seeking to fulfil the above objectives will include;
• Promotion of Water Supply Systems • Promotion of Sanitation and Hygiene • Training and Capacity Building The accounting system will have the ability to generate reports showing expenditure per component and priority area.
3.2.3 Dimension 3: Source of funds
Data may be analysed by the funding source at the transaction entry level to facilitate reporting by financier. Financiers include GOK and other donors or funding agencies.
3.2.4 Dimension 4: Geographic location of projects
Reports produced should enable management assess expenditure by geographic areas and by number of beneficiaries in those locations. Geographic locations may refer to Administrative Regions following from the various Water Service Boards or to Climatic Regions, with areas classified as either, Arid and Semi-Arid Lands (ASAL), High, Medium or Low potential. This will help management identify the cost per beneficiary served in different geographic locations.
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3.2.5 Dim ension 5: Timeframe
Management reporting will be on a quarterly basis. Data will be analysed by date at the transaction entry level to facilitate generation of reports for various periods, including daily, weekly, monthly etc.
3.2.6 Dimension 6: WSTF units and cost centres
Data will be analyzed by WSTF Units and Cost Centres, which include:
• Finance & Resource Mobilization Department • Technical Appraisal Department – Nairobi , Central, Coast and Northern • Technical Appraisal Department – Lake Victoria North, Lake Victoria South, Rift Valley • Field Co-ordination Department • Administration and Human Resources Department • Sanitation and Hygiene • Institutional Development • CEO
The heads of different departments will be the budget holders for their respective departments / cost centres.
3.3 Chart of accounts The design of a chart of accounts normally depends on:
• The reporting requirements
• Data analysis and reporting compatibility of the accounting software on which it is based.
To meet the identified reporting requirements, the project accounting software will have a strong data analysis capability and a flexible report generator.
Based on the reporting requirements and operations of the WSTF, the account code will have segments as outlined below. A more detailed illustration of the Accounts Structure is provided in Appendix 1 .
The first segment will identify the Account Type as follows:
100000 for income accounts 200000 for expenditure accounts 300000 for assets 400000 for liabilities 500000 for capital accounts 600000 clearing account
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The second segment will identify the Primary Expenditure Groups as follows:
10000 for Office Expenses 20000 for Funds Disbursed to Projects 30000 for Project Management and Capacity Building
The third segment will be the Cost Centre. These would include
1000 Finance & Resource Mobilization Department 2000 Technical Appraisal Department – Nairobi, Central, Coast and Northern 3000 Technical Appraisal Department – Lake Victoria North, Lake Victoria South, Rift Valley 4000 Field Co-ordination Department 5000 Administration and Human Resources Department 6000 Sanitation and Hygiene Department 7000 CEO
The fourth segment will identify the priority intervention areas. These include:
100 Ground Water Distribution 200 Surface Water Distribution 300 Rainwater Harvesting 400 Transmission Systems 500 Point Sources 600 Promotion of Sanitation and Hygiene 700 Training and Capacity Building
The fifth segment is the main account code. For Instance:
10 Printing, photocopy and stationery 20 Travel and accommodation 30 Vehicle running and maintenance costs
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4 Systems – to be inserted once Financial Management System is selected
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5 Budget Preparation Procedures
5.1 Budget preparation procedures WSTF has a role in the wider budget process through the influence of resource allocation to key priority areas and activities carried out by various stakeholders. WSTF will prepare its annual and quarterly budgets in accordance with the requirements of Government of Kenya. The Government of Kenya budget is prepared in the three-year rolling Medium Term Expenditure Framework (MTEF). The MTEF provides a link between budgetary allocations and specific measures /activities geared towards fulfilling the overall objective or theme of the budget.
5.2 Annual estimates
As outlined in section 3.2.1, WSTF will have 3 key types of expenditure, Offices Expenses; Funds Disbursed to Projects and Project Management and Capacity Building Expenses.
Head Office Expenses which will include personnel emoluments and office operation costs will be categorised as recurrent expenditure while funds disbursed to projects, project management and capacity building expenses will be categorised as development expenditure. Annual estimates for the WSTF will then be prepared in accordance with Treasury circulars.
5.2.1 Recurrent expenditure estimates for WSTF
These will be prepared by the various cost centre heads in consultation with the WSTF Finance and Resource Mobilisation Department. These estimates will be reviewed and approved by the CEO and Trustees and will then be forwarded to the Ministry of Water and Irrigation. These estimates will be prepared in line with the guidelines of the State Corporations Act CAP 446 and The Report of the Inter-Ministerial Task Force on The Delinking of the Water State Corporations of August 2004.
The submissions are scrutinised in line with the recurrent ceiling of the ministry and the resource envelope to the Trust Fund. Monitoring and Evaluation of the annual budget shall be done to rationalize further the available resources for different activities. It also acts as a remedy / check to over-expenditures and under-expenditures in the budgeting process.
5.2.2 Development expenditure estimates for WSTF
WSTF will prepare annual development expenditure budgets guided by the objectives it sets out in its Strategic Plans which will typically be based on a time frame of 3 to 5 years. Based on the identified priority technologies to be employed per geographic area, the intended number of people to be served and costs per beneficiary per identified technology to be applied per geographic area, annual development expenditure estimates may then be generated. The development expenditure budgets prepared in this way will assist the WSTF in resource planning.
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For control purposes and expense rationalisation, Project Management and Capacity Building expenses will be computed as a percentage of funds to be disbursed to projects. Depending on the geographical location of the project and technology applied for water supply and sanitation delivery this percentage will vary. WSTF will develop rates following an outline as per the table below to assist it in budgeting.
Region Ground Water
Distribution
Surface Water
Distribution
Rainwater
Harvesting
Transmission
Systems
Point
Sources
Sanitation
and Hygiene
Training
and Cap
Bldg
Central
Coast
L. Victoria N
L. Victoria S
Nairobi
Northern
Rift Valley
It is also recognised that WSTF may receive funds in an ad-hoc manner not necessarily following its calendar year. As this is likely to be a key method of funds receipt, WSTF budget preparation processes should be flexible enough to adapt accordingly and assist management with human and financial resource planning.
Funds will typically be received in two ways: Funds allocated to specific projects; funds received and placed in the WSTF expenditure pool. Besides affecting human resource planning for monitoring, evaluation and technical support, specifically funded projects are not expected to have a major impact on the WSTF annual budgeting process.
Actual funding for disbursement to projects received for the year may differ from that projected based on firm commitments earlier received. The grading of project funding applications should be flexible enough to ensure that funding is then disbursed based on a rational system taking into account the ranking given to the application and geographic location of the project such as to fairly allocate funds to more projects if the funds actually received are higher than the commitments made and to fairly exclude projects if the funds received are less than the commitments made.
Development expenditure estimates will be prepared by activity and type as per the necessary work plans received from the various p rojects. These must be approved by the respective water Service Boards otherwise the Trustees will approve the projects where the Water Service Boards are not yet operational.
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5.3 Data Flow Diagram The procedures are provided in detail below.
Heads of Departments
Heads of Departments
Finance Manager
• Finance Manager• CEO• Trustees
1. Staff within the various departments contribute towards the generation of annual expenditure estimates based on their annual work plans
2. The department / cost centre heads submit their expenditure estimates to the finance manager
3. Finance manager to consolidate expenditure estimates from the various departments
4. Finance manager to forward the consolidated organisational -wide expenditure estimate to the CEO and Trustees for review and approval
1.
2.
3.
4.
ResponsibilityProcedure StepsProcess Flow
WSTF Budgeting Preparation Procedures – Recurrent Expenditure
Heads of Departments
Heads of Departments
Finance Manager
• Finance Manager• CEO• Trustees
1. Staff within the various departments contribute towards the generation of annual expenditure estimates based on their annual work plans
2. The department / cost centre heads submit their expenditure estimates to the finance manager
3. Finance manager to consolidate expenditure estimates from the various departments
4. Finance manager to forward the consolidated organisational -wide expenditure estimate to the CEO and Trustees for review and approval
1.
2.
3.
4.
ResponsibilityProcedure StepsProcess Flow
WSTF Budgeting Preparation Procedures – Recurrent Expenditure
Departments / Cost Centres to prepare work plans for the year in consultation with Finance Manager
Annual Work plans and expenditure estimates submitted to the Finance Manager
Finance manager to consolidate the various work plans and expenditure estimates
Consolidated organisational-wide annual recurrent expenditure estimate
To 5
Organisation-wide expenditure estimates forwarded to CEO and Trustees for review and approval
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• CEO WSTF• Chairperson WSTF
Finance Manager, CEO
5. The approved annual budget is then forwarded to the PS MWI for approval
5.
ResponsibilityProcedure StepsProcess Flow
WSTF Budgeting Preparation Procedures – Recurrent Expenditure
• CEO WSTF• Chairperson WSTF
Finance Manager, CEO
5. The approved annual budget is then forwarded to the PS MWI for approval
5.
ResponsibilityProcedure StepsProcess Flow
WSTF Budgeting Preparation Procedures – Recurrent Expenditure
Approved Annual Organisation-wide
Recurrent Expenditure Estimates
Approved Annual Recurrent Expenditure Estimates forwarded to PS MWI for approval
Approved Annual Recurrent Expenditure
Estimates / Budget
File Copy
From 4
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Department Heads,Finance Manager
Department Heads,Finance Manager
Department Heads,Finance Manager
Finance Manager
CEO
CEO
1. The total number of the target population for the year is identified from the objectives outlined in the Strategic Plan.
2. The target population is divided into geographic areas based both on administrative regions and climatic conditions.
3. A per capita service cost rate is applied to the targeted population per geographic location. A percentage rate for project management and capacity building is also applied based on the value of projects selected for a geographic area.
4. A 1st Draft Development Expenditure Budget is developed
5. The 1st draft budget is circulated to the CEO and all department heads, discussed and agreed upon by the WSTF management team
6. The 1st draft budget is forwarded to the trustees for review and approval
1.
2.
3.
4.
5.
6.
ResponsibilityProcedure StepsProcess Flow
WSTF Budgeting Preparation Procedures – Development Expenditure
Department Heads,Finance Manager
Department Heads,Finance Manager
Department Heads,Finance Manager
Finance Manager
CEO
CEO
1. The total number of the target population for the year is identified from the objectives outlined in the Strategic Plan.
2. The target population is divided into geographic areas based both on administrative regions and climatic conditions.
3. A per capita service cost rate is applied to the targeted population per geographic location. A percentage rate for project management and capacity building is also applied based on the value of projects selected for a geographic area.
4. A 1st Draft Development Expenditure Budget is developed
5. The 1st draft budget is circulated to the CEO and all department heads, discussed and agreed upon by the WSTF management team
6. The 1st draft budget is forwarded to the trustees for review and approval
1.
2.
3.
4.
5.
6.
ResponsibilityProcedure StepsProcess Flow
WSTF Budgeting Preparation Procedures – Development Expenditure
WSTF Strategic Plan
Total No. of Target Population Identified
Target Population divided into
Geographic Regions
Per Capita Service Cost Rates applied to
Target Population
1st Draft Development Expenditure
Budget Developed
1st Draft Development Expenditure
Budget
1st draft circulated and
discussed
1st draft forwarded to trustees for review and
approval
To 7
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Trustees
PS MWI
WSTF
7. The approved draft expenditure budget is forwarded to the PS MWI for review and approval
8. The PS MWI reviews and approves the draft development expenditure budget and may propose adjustments to be made
9. The final development expenditure budget is prepared and adopted
7.
8.
9.
ResponsibilityProcedure StepsProcess Flow
WSTF Budgeting Preparation Procedures – Development Expenditure
Trustees
PS MWI
WSTF
7. The approved draft expenditure budget is forwarded to the PS MWI for review and approval
8. The PS MWI reviews and approves the draft development expenditure budget and may propose adjustments to be made
9. The final development expenditure budget is prepared and adopted
7.
8.
9.
ResponsibilityProcedure StepsProcess Flow
WSTF Budgeting Preparation Procedures – Development Expenditure
From 6
Approved draft budget forwarded
to PS MWI
PS MWI reviews and approves draft budget or proposes adjustments
Final Development Expenditure Budget
Prepared
Development Expenditure
Budget
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6 Cash Management
6.1 Purpose The purpose of the cash management system is to ensure that:
• All cash received is promptly and accurately accounted for and banked intact
• All payments are properly verified and approved before payment is made
• All vouchers and supporting documentation are properly stamped “paid” immediately after payment is done
• There is adequate segregation of responsibilities
• All cash transactions are properly captured by the General Ledger system
• Bank and cash reconciliations are done on a timely basis
• Cash requirements are forecast and surplus funds may be invested.
6.2 Receipt of money and recording of funds
Funds are received in the following ways:
• Direct transfers into WSTF accounts from the donors and other funding agencies. • Cheque /cash receipts from GoK and donors. • In the case of direct bank transfers, WSTF will receive a deposit advice from the bank to confirm
receipt of the funds. The bank advice will be used to raise a receipt. • When cash/cheque is received, an official receipt will be raised in triplicate immediately.
6.3 Payment procedures Payments will be made to:
• Contracted Parties implementing relevant projects • Suppliers of goods and services • Staff carrying out WSTF activities in form of imprests • Staff as salaries • Replenish petty cash
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For all purchase/service and payment orders there shall be two authorised signatories. The Finance department will prepare payments upon the receipt of approved purchase orders, invoices and other supporting documents.
All cheques will be supported by a payment voucher and will be entered into a register before they are released. The register will show the name of the payee, the am ount, the cheque number and the date of collection (or despatch by registered mail and courier). All cancelled cheques will be stamped "VOID" and recorded in the cheque register with the word ‘CANCELLED’ in the payee space.
6.4 Authorisation of payment for goods, works and services
Official purchase orders shall be issued for all goods, works and services required in accordance with the WSTF procurement regulations. These regulations will be based on best practice, public procurement regulations and project donor procurement guidelines. For specific procurements being funded by a specific Development Partner, the WSTF procurement regulations and practices will allow GoK and /or development partners procedures to take precedence over any conflicting provisions in the WSTF regulations.
Local Purchase/Service Orders shall be in a form approved by the Finance Manager in liaison with the Administration and Human Resources Manager as well as the Procurement Officer.
The Procurement Officer shall control the printing and issue of such forms. The orders and copies thereof shall contain such information as the Procurement Officer in consultation with the Finance Manager and Administration and Human Resources Manager, require from time to time to ensure that there is an a dequate record of WSTF’s liability.
The Local Purchase/Service Order will be signed by two authorised officials as follows:
Finance Manager & CEO Kshs.5,000 – Kshs.1 Million Selected Trustee and CEO Over Kshs.1 Million Authorisation for payment levels and signatories are as follows:
Finance Manager Up to Kshs. 200,000 CEO Up to Kshs. 5,000,000 Trustees’ resolution Over Kshs. 5 million
6.5 Bank and banking arrangements The CEO on behalf of the Fund shall make all bank and banking arrangements with reputable banks only as approved by the trustees.
The cheque signatories will fall under two categories as follows:
Category A Finance Manager
PricewaterhouseCoopers Water Services Trust Fund 22 Financial Management Manual (Draft)
CEO Category B WSTF Chairperson Two designated trustees All cheques must have 2 signatories with both Category A and B bei ng mandatory. Cheques shall only be ordered by any of the two signatories per mandate. The Finance Manager will make adequate arrangements for their custody.
Cheques in current use shall be entered in the register of accountable documen ts to be kept by the Finance Manager.
Bank reconciliations will be prepared not later than 10 working days after the previous end of month by the Accountant. The Finance Manager will ensure the reconciliation of all bank account balances to the cashbooks is done. Each bank reconciliation will be prepared by a designated accountant and reviewed by the Finance Manager (Evidence of the date of preparation and review must be indicated on each reconciliation). The WSTF CEO will randomly review the bank reconciliations from time to time.
6.5.1 Insurance
All cash in transit and petty cash held in the WSTF offices shall be insured against any form of loss. The level of insurance shall depend on the security measures put in place to minimise theft or any other form of loss.
Fidelity guarantee must be taken in respect of pecuniary loss as a result of infidelity of employees occupying declared positions in finance.
6.6 Cash flow forecast and investment of excess funds Cash flow projections will be prepared and the cash position reviewed in making cash management decisions. Surplus funds will be invested, according to the approved investment policy, while ensuring WSTF is liquid enough to make payments for its obligations in a timely manner.
The Finance Manager will be responsible for the preparation of cash projections (Weekly, monthly, quarterly) and any envisaged excess funds/cash will be invested in short term (Maximum 90 days) liquid and secure securities e.g. Government securities like Treasury Bills or similar investments. WSTF’s bankers will act as agents and/or advisors once investment decisions are taken by the Fund.
PricewaterhouseCoopers Water Services Trust Fund 23 Financial Management Manual (Draft)
6.7 Data Flow Diagram (DFD) and Data Processing Instructions (DPI) The procedures are provided in detail below.
Finance Manager (FM)
Cashier
Cashier
Cashier
Accountant
Accountant
Accountant
1. Receive cheque or bank deposit advice, ensure it has been registered in the incoming mail register, and forward it to the Cashier.
2. Receive cash/cheque or bank deposit advice and raise an official receipt in triplicate. Send one copy to source of funds to acknowledge receipt. File a copy in the bank fi le and leave third as the book copy.
3. Bank cheques and cash received immediately, and not later than the end of the business day following the date of receipt.
4. Code the Official Receipt using the chart of Accounts and analysis codes.
5. Review Coding and approve for entry to Cashbook.
6. Update the Cashbook.
7. File official receipts and bank pay- in-slips, and vouchers in serial number order.
1.
2.
3.
4.
5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Receipt and Recording of Funds
WSTF Cash Management Procedures
Finance Manager (FM)
Cashier
Cashier
Cashier
Accountant
Accountant
Accountant
1. Receive cheque or bank deposit advice, ensure it has been registered in the incoming mail register, and forward it to the Cashier.
2. Receive cash/cheque or bank deposit advice and raise an official receipt in triplicate. Send one copy to source of funds to acknowledge receipt. File a copy in the bank fi le and leave third as the book copy.
3. Bank cheques and cash received immediately, and not later than the end of the business day following the date of receipt.
4. Code the Official Receipt using the chart of Accounts and analysis codes.
5. Review Coding and approve for entry to Cashbook.
6. Update the Cashbook.
7. File official receipts and bank pay- in-slips, and vouchers in serial number order.
1.
2.
3.
4.
5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Receipt and Recording of Funds
WSTF Cash Management Procedures
Funds Advice
Receive Chq /Advice
Raise receipt
Receipt
File
Pay -in Slips
Bank Funds
Assign Codes
Approve
Record
File
Funds from donors
PricewaterhouseCoopers Water Services Trust Fund 24 Financial Management Manual (Draft)
Accountant
Accountant
Accountant
Accountant
Accountant
1. Receive Purchase orders/contracts as evidence of ordering goods.
2. Record LPOs as commitments and file in LPO number order.
3. Receive invoice and supporting Goods/Service Received Notes (GRN) and other documents. Review invoice against supporting documents and check calculations. Ensure it is certified for receipt of goods by end user or Administration.
4. Prepare Payment Vouchers if invoice is correct in all respects. Forward PV together with supporting documents to the Finance Manager. If not in order return to the Procurement Office or Administration as appropriate.
5. Review PV against supporting documents to ensure there is sufficient evidence of receipt of goods or services according to specific LPO or contract. Also review correctness of amounts on the documents and ensure PV complies with WSTF payment policies. Sign for review and forward to CEO WSTF.
1.
2.
3.
4.
5.
ResponsibilityProcedure StepsProcess Flow
Making Payments
WSTF Cash Management Procedures
Accountant
Accountant
Accountant
Accountant
Accountant
1. Receive Purchase orders/contracts as evidence of ordering goods.
2. Record LPOs as commitments and file in LPO number order.
3. Receive invoice and supporting Goods/Service Received Notes (GRN) and other documents. Review invoice against supporting documents and check calculations. Ensure it is certified for receipt of goods by end user or Administration.
4. Prepare Payment Vouchers if invoice is correct in all respects. Forward PV together with supporting documents to the Finance Manager. If not in order return to the Procurement Office or Administration as appropriate.
5. Review PV against supporting documents to ensure there is sufficient evidence of receipt of goods or services according to specific LPO or contract. Also review correctness of amounts on the documents and ensure PV complies with WSTF payment policies. Sign for review and forward to CEO WSTF.
1.
2.
3.
4.
5.
ResponsibilityProcedure StepsProcess Flow
Making Payments
WSTF Cash Management Procedures
Invoice LPO GRN
Update Commitments
Review Invoice
Prepare PV
PV
Approve PV
To 6
From Purchasing
PricewaterhouseCoopers Water Services Trust Fund 25 Financial Management Manual (Draft)
Finance Manager
Cashier
Cheque Signatories
Accountant
Cashier
Accountant
Accountant
6. Sign PV to authorise payment and forward it together with supporting documents to the Cashier.
7. Prepare cheque and submit to the signatories.
8. Sign cheques and forward for recording and despatch.
9. Record details of signed cheques in the Cheque Despatch Register. Ensure that all cancelled Cheque are stamped ‘VOID’ and recorded in the Register with word ‘CANCELLED’ on the payee field. Ensure persons collecting Cheques enter their name, signature and identification numbers on the Register. Use Registered mail or Courier service for deliveries outside Nairobi.
10. Stamp the PV, invoices and supporting documents ‘PAID’. Record the payment in the Cash Book.
11. Review Cashbook journal and update General Ledger.
12. File PVs, supporting journal print out and documents in PV order number
6.
7.
8.
9.
10.
11.
12.
WSTF Cash Management Procedures
Finance Manager
Cashier
Cheque Signatories
Accountant
Cashier
Accountant
Accountant
6. Sign PV to authorise payment and forward it together with supporting documents to the Cashier.
7. Prepare cheque and submit to the signatories.
8. Sign cheques and forward for recording and despatch.
9. Record details of signed cheques in the Cheque Despatch Register. Ensure that all cancelled Cheque are stamped ‘VOID’ and recorded in the Register with word ‘CANCELLED’ on the payee field. Ensure persons collecting Cheques enter their name, signature and identification numbers on the Register. Use Registered mail or Courier service for deliveries outside Nairobi.
10. Stamp the PV, invoices and supporting documents ‘PAID’. Record the payment in the Cash Book.
11. Review Cashbook journal and update General Ledger.
12. File PVs, supporting journal print out and documents in PV order number
6.
7.
8.
9.
10.
11.
12.
WSTF Cash Management Procedures
From 5
Authorise Payment
Prepare Cheque
Sign Cheque
Stamp PV
Record Cheque
Update CB and GL
File
Cheque
PricewaterhouseCoopers Water Services Trust Fund 26 Financial Management Manual (Draft)
Finance Manager
Accountant
Accountant
Accountant
Finance Manager
Accountant
Accountant
1. Receive monthly bank statements from the bank.
2. Agree the balance to the cashbook balance
3. Identify the reconciling items.
4. Prepare adjusting journals for the identified reconciling items.
5. Review the reconciliation and sign off
6. Process the journals in the accounts and adjust the cash book.
7. File copy of the reconciliation
1.
2.
3.
4.
5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Bank reconciliation procedures
WSTF Cash Management Procedures
Finance Manager
Accountant
Accountant
Accountant
Finance Manager
Accountant
Accountant
1. Receive monthly bank statements from the bank.
2. Agree the balance to the cashbook balance
3. Identify the reconciling items.
4. Prepare adjusting journals for the identified reconciling items.
5. Review the reconciliation and sign off
6. Process the journals in the accounts and adjust the cash book.
7. File copy of the reconciliation
1.
2.
3.
4.
5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Bank reconciliation procedures
WSTF Cash Management Procedures
Receive Statement
Agree to Cashbook
Identify reconciling
items
Prepare adjusting journals
Sign Off
Process account
File
Print-out
PricewaterhouseCoopers Water Services Trust Fund 27 Financial Management Manual (Draft)
Heads of Departments
Finance Manager
Finance Manager
Finance Manager
Finance Manager
CEO and Trustees
Finance Manager
Finance Manager
Monthly:1. With assistance from
Finance, allocate planned expenditure to the approximate month of payment. In doing this consider timing of activity and payment policy.
2. Generate cash requirements forecast analysed by activity and expense type.
3. Prepare a projected cash inflow analysed by source of funds and discuss with CEO
4. Obtain approval of cash flow forecast from the CEO and transfer funds to operating accounts as appropriate.
5. Seek authority to invest surplus funds in accordance to WSTF’s surplus funds investment policy
6. Approve investment of funds in deposit accounts.
7. Prepare advice for funds transfer; obtain approval from cheque signatories and forward transfer advice to the Bank.
8. File copy of the forecast
1.
2.
3.
4.
5.
6.
7.
8.
ResponsibilityProcedure StepsProcess Flow
Review of Cash position and Preparation of Cash Forecasts
WSTF Cash Management Procedures
Heads of Departments
Finance Manager
Finance Manager
Finance Manager
Finance Manager
CEO and Trustees
Finance Manager
Finance Manager
Monthly:1. With assistance from
Finance, allocate planned expenditure to the approximate month of payment. In doing this consider timing of activity and payment policy.
2. Generate cash requirements forecast analysed by activity and expense type.
3. Prepare a projected cash inflow analysed by source of funds and discuss with CEO
4. Obtain approval of cash flow forecast from the CEO and transfer funds to operating accounts as appropriate.
5. Seek authority to invest surplus funds in accordance to WSTF’s surplus funds investment policy
6. Approve investment of funds in deposit accounts.
7. Prepare advice for funds transfer; obtain approval from cheque signatories and forward transfer advice to the Bank.
8. File copy of the forecast
1.
2.
3.
4.
5.
6.
7.
8.
ResponsibilityProcedure StepsProcess Flow
Review of Cash position and Preparation of Cash Forecasts
WSTF Cash Management Procedures
Payments timing
estimate
Generate Cash Requirement
Forecast
Project Cash-flow
Obtain approval
Surplus?
Seek approval
Approve investment
Process transfer
File To Bank
Bank advice
File
Bank statement
Forecast
From bank
NO
YES
PricewaterhouseCoopers Water Services Trust Fund 28 Financial Management Manual (Draft)
7 Petty Cash Control Procedures
7.1 Purpose The purpose of the petty cash system is to ensure:
• The maintenance of sufficient amount of float to meet small cash needs • Safe custody of petty cash funds • Adequate controls over a petty cash held and petty cash payments made • Prompt and accurate processing, issuance, recording and accounting for petty cash.
7.2 Policy WSTF will maintain a petty cash float to meet small office expenses.
WSTF management will agree the float amount which will be monitored and revised, with approval of the CEO, when considered necessary.
Any payments in excess of Kshs 5,000 will be made by Cheque.
7.3 Description The Cashier will maintain an initial float of Kshs 50,000 for meeting small office expenses, and any other cash withdrawn for specific purposes has to be surrendered to the Cashier for proper accounting before the money is paid out. Petty cash will not be used for workshops, travel, per diems, allowances, fuel or salary advances.
Travel allowance and workshop imprest procedures are provided in Section 8. Funds for these activities will be advanced and accounted for using an Imprest Application Form and an Imprest Accounting Form.
Petty cash shall be securely locked up in a safe. The Cashier should ensure adequate security measures are in place while transporting petty cash from the bank and when accessing the safe to make payments.
The Finance Manager will conduct surprise petty cash counts to ensure petty cash is safe, used as intended and accounted for correctly. The count sheet shall be counter signed by both the Cashier and the person conducting the count and dated. Any discrepancies noted shall be reported immediately to the Finance Manager and WSTF CEO.
7.3.1 Request and payment of petty cash
Requests for petty cash will be made using a Petty Cash Voucher (PCV). Employees requiring petty cash will complete the form and obtain approval from the respective Head of Department. Heads of
PricewaterhouseCoopers Water Services Trust Fund 29 Financial Management Manual (Draft)
Departments requiring petty cash will complete the form and obtain approval from the Finance Manager or CEO.
Once approved by the Finance Manager or Accountant, the PCV will be presented to the Cashier for payment. The recipient of petty cash will sign the PCV on receipt of the funds. The Cashier will retain the PCV in the petty cash box until the funds are accounted for with supporting documents.
7.3.2 Accounting for expenditure
Petty cash advances will be accounted for immediately after incurring expenditure. This should take place on the same day the petty cash a dvance is taken. Only in exceptional cases should petty cash be accounted other than on the day of disbursement. The petty cash holder will summarise the expenses, attach all the receipts and submit them to the Cashier. Any difference between the advance and the expenditure will be reflected on the PCV and surrendered to the Cashier. If more than the approved advance is spent, the person who authorised the expenditure will be required to approve the additional payment to the Petty Cash holder.
Un-surrendered petty cash should be recovered from the staff salary in the same month it was paid out.
7.3.3 Petty cash replenishment
The petty cash float will be replenished with the amount spent every time the balance falls below 25% of the float. The CEO, WSTF will appro ve any revision to this percentage. A properly analysed Petty Cash Replenishment Request Form will be completed to account for the float. This will be adequately supported by PCVs and expenditure receipts.
A payment voucher will be raised for the replenishment. The petty cash replenishment cheque should be reconciled to the petty cash expenditure. Any discrepancies noted should be investigated immediately and corrective action taken.
7.3.4 Cash reconciliation procedures
This will be prepared on a daily basis by the Cashier and supervised by the Accountant who will ensure that it agrees to the daily balances.
7.3.5 Data flow Diagram (DFD)
The procedures are illustrated below.
PricewaterhouseCoopers Water Services Trust Fund 30 Financial Management Manual (Draft)
Petty Cash Applicant
Finance Manager orAccountant
Petty Cash Applicant
Cashier
1. Fill in a Petty Cash Voucher (PCV) for the required amount of petty cash and forward to the to Section Head to approve.
2. Review PCV and ensure that:
• it is reasonable and/or adequately supported by valid documentation
• the purpose of the request (the activity, expenditure type and details) is clearly stated
• activity is within the approved work-plan and budget approved.
Approve petty cash voucher and forward to the Cashier.
3. Receive cash from the Cashier and sign for receipt
4. Hold PCV in petty cash box until funds are accounted for
1.
2.
3.
4.
ResponsibilityProcedure StepsProcess Flow
Request and Payment of Petty Cash
WSTF: PETTY CASH CONTROL
Petty Cash Applicant
Finance Manager orAccountant
Petty Cash Applicant
Cashier
1. Fill in a Petty Cash Voucher (PCV) for the required amount of petty cash and forward to the to Section Head to approve.
2. Review PCV and ensure that:
• it is reasonable and/or adequately supported by valid documentation
• the purpose of the request (the activity, expenditure type and details) is clearly stated
• activity is within the approved work-plan and budget approved.
Approve petty cash voucher and forward to the Cashier.
3. Receive cash from the Cashier and sign for receipt
4. Hold PCV in petty cash box until funds are accounted for
1.
2.
3.
4.
ResponsibilityProcedure StepsProcess Flow
Request and Payment of Petty Cash
WSTF: PETTY CASH CONTROL
Prepare PCV
PCV
Approve PCV
Receive Cash
Hold
PricewaterhouseCoopers Water Services Trust Fund 31 Financial Management Manual (Draft)
Petty Cash Holder
Cashier
Accountant
Cashier
Cashier
Cashier
1. Support expenditure incurred with original receipts and sign each receipt at the back. Return the documents together with all unused cash to the Cashier immediately on return to office.
2. Attach all the original receipts to the PCV and ensure that relevant expenditure details (Activity, expense type and source of funds) are indicated. Indicate expenditure amount on the PCV and calculate difference between advance and expenditure.
3. Verify Petty cash expenditure.
4. Where there is a balance of unused petty cash, receive it and sign the PCV. Where the Holder spends more than advanced, pay balance after the person who authorised the advance approves the extra spending. Ensure the recipient signs the PCV for the additional payment.
5. Record petty cash expenditure in the Petty Cash Book.
6. File the petty cash vouchers sequentially in a box file
1.
2.
3.
4.
5.
6.
ResponsibilityProcedure StepsProcess Flow
Accounting for Petty Cash
WSTF: PETTY CASH CONTROL
Petty Cash Holder
Cashier
Accountant
Cashier
Cashier
Cashier
1. Support expenditure incurred with original receipts and sign each receipt at the back. Return the documents together with all unused cash to the Cashier immediately on return to office.
2. Attach all the original receipts to the PCV and ensure that relevant expenditure details (Activity, expense type and source of funds) are indicated. Indicate expenditure amount on the PCV and calculate difference between advance and expenditure.
3. Verify Petty cash expenditure.
4. Where there is a balance of unused petty cash, receive it and sign the PCV. Where the Holder spends more than advanced, pay balance after the person who authorised the advance approves the extra spending. Ensure the recipient signs the PCV for the additional payment.
5. Record petty cash expenditure in the Petty Cash Book.
6. File the petty cash vouchers sequentially in a box file
1.
2.
3.
4.
5.
6.
ResponsibilityProcedure StepsProcess Flow
Accounting for Petty Cash
WSTF: PETTY CASH CONTROL
Expense receipts
Submit expense receipts
Attach expense receipts
Verify expenses
Receive cash
differences
Update petty cash book
File
File
PCV
PCV
File
PricewaterhouseCoopers Water Services Trust Fund 32 Financial Management Manual (Draft)
Cashier
Cashier
Accountant
Finance Manager
Accountant
Finance Manager
Accountant
1. Count the cash at close of business
2. Agree to petty cash book
3. Identify all the reconciling items
4. If misuse of petty cash noted then disciplinary action should be taken.
5. Where normal reconciling items pass adjusting journals
6. Review the reconciliation and sign off
7. Process the account with any adjustments and file the reconciliation together with cash count results
1.
2.
3.
4.5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Daily Cash Reconciliation
WSTF: PETTY CASH CONTROL
Cashier
Cashier
Accountant
Finance Manager
Accountant
Finance Manager
Accountant
1. Count the cash at close of business
2. Agree to petty cash book
3. Identify all the reconciling items
4. If misuse of petty cash noted then disciplinary action should be taken.
5. Where normal reconciling items pass adjusting journals
6. Review the reconciliation and sign off
7. Process the account with any adjustments and file the reconciliation together with cash count results
1.
2.
3.
4.5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Daily Cash Reconciliation
WSTF: PETTY CASH CONTROL
Count cash
Agree to petty cash book
Identify reconciling
itemsSerious?
YES
NO
Pass adjusting journal
Sign off
Process account
File
Take Action
PricewaterhouseCoopers Water Services Trust Fund 33 Financial Management Manual (Draft)
Cashier
Accountant
Finance Manager
Cashier
Cheque Signatories
Cashier
Accountant
Accountant
Accountant
1. Prepare an expenditure report, the Petty Cash Replenishment Request (PCRR) detailing total expenditure each time the balance reaches replenishment level (25% Float).
2. Prepare a Payment Voucher for replenishment of petty cash. Attach the PCRR and supporting expenditure documents, and forward to the Finance Manager.
3. Check the PCRR to the original receipts. Review the payment voucher and ensure that the reimbursement amount equals the total of the expenditure receipts. Approve the replenishment
4. Raise Cheque for Replenishment and forward to cheque signatories.
5. Sign Petty Cash replenishment Cheque.
6. Replenish the float.
7. Update the General Ledger with petty cash expenditure as follows:
Dr Expense (various)Cr. Petty Cash.
8. Update the Cash book with the float replenishment payment by:
Dr. Petty cash Cr. Bank-main cashbook
9. File vouchers in PV Number order
1.
2.
3.
4.
5.
6.
7.
8.
9.
ResponsibilityProcedure StepsProcess Flow
Replenishment of Petty Cash
WSTF: PETTY CASH CONTROL
Cashier
Accountant
Finance Manager
Cashier
Cheque Signatories
Cashier
Accountant
Accountant
Accountant
1. Prepare an expenditure report, the Petty Cash Replenishment Request (PCRR) detailing total expenditure each time the balance reaches replenishment level (25% Float).
2. Prepare a Payment Voucher for replenishment of petty cash. Attach the PCRR and supporting expenditure documents, and forward to the Finance Manager.
3. Check the PCRR to the original receipts. Review the payment voucher and ensure that the reimbursement amount equals the total of the expenditure receipts. Approve the replenishment
4. Raise Cheque for Replenishment and forward to cheque signatories.
5. Sign Petty Cash replenishment Cheque.
6. Replenish the float.
7. Update the General Ledger with petty cash expenditure as follows:
Dr Expense (various)Cr. Petty Cash.
8. Update the Cash book with the float replenishment payment by:
Dr. Petty cash Cr. Bank-main cashbook
9. File vouchers in PV Number order
1.
2.
3.
4.
5.
6.
7.
8.
9.
ResponsibilityProcedure StepsProcess Flow
Replenishment of Petty Cash
WSTF: PETTY CASH CONTROL
Prepare PCRR
PCRR
Prepare PV
PV
Review PCRR/ PV
Raise Cheque
Cheque
Sign Cheque
Replenish float
Update GL
Update CB and PCB
File
PricewaterhouseCoopers Water Services Trust Fund 34 Financial Management Manual (Draft)
8 Travel and Activity Imprests
8.1 Purpose The purpose of the imprest system is to ensure that:
• Imprest is issued for approved activities and expenditure types • Proper approval systems are adhered to in making imprests payments • Reasonable amounts are paid out as imprests • Imprest is promptly and fully accounted for with appropriate supporting documents • Travel and other activities requiring imprests are adequately planned for in advance.
8.2 Policy WSTF will pay for travel and reasonable living expenses for employees on official business in accordance with guidelines and rates set out in the Terms and Conditions of Service. These details will be elaborated in a personnel policies and procedures manual, but in summary the expenses will be claimed as detailed in the sections that follow.
8.3 In country- out of station allowance Officers travelling on duty within Kenya and away from their duty station will be paid a per diem / Daily Subsistence Allowance (a flat accommodation allowance per night) at rates guided by government circulars to be issued from time to time.
Officers travelling on duty but not spending a night away from their duty station will be eligible for lunch and dinner allowance at rates also to be guided by government circulars issued from time to time.
Fuel and other incidental vehicle running costs will be based on the official expenditure receipts.
8.4 Out of country subsistence allowance This allowance will be paid as per agreed rates determined by the WSTF Management. All out of country travel allowances will be approved by the Chairperson of WSTF or by the Vice-Chairperson in the absence of the Chairperson.
8.5 Application for travels and activities imprests The respective budget holders for approved activities will review and approve local travel and activity imprest applications. All out of country activities must also be approved by the Chairperson of WSTF or by the Vice-Chairperson in the absence of the Chairperson.
PricewaterhouseCoopers Water Services Trust Fund 35 Financial Management Manual (Draft)
The approved application shall be submitted to the Finance department at least one week (5 working days) before the date on which funds are required. Once an imprest is issued, it will immediately be posted to an interim staff imprest account of the individual taking the imprest.
8.6 Accounting for imprests
Imprests must be accounted for within 48 hours of return to office from activity in the field. No further advances will be made until previous ones are fully accounted for. An Expenditure Form will be completed in accounting for the imprest. The form is designed to facilitate analysis of the spending by activity and expenditure type, e.g. per diem, stationery, transport etc.
The imprest holder will obtain approval either from the Budget Holder or the CEO, WSTF before submitting the form to Finance Department.
Any amounts not spent will be surrendered to the Cashier when accounting for the imprest, and an official receipt issued. Similarly, officers who spend more than the amount advanced will be refunded the excess amount spent after they have accounted for the advance. The excess amount must be approved by the Department Head or CEO.
8.7 Unsurrendered imprest
Imprests that remain unaccounted for beyond the required period of return to office will be recovered from the employee’s salary in such amounts and over such period as the Finance Manager in consultation with the CEO, WSTF may consider appropriate.
8.8 Data Flow Diagram (DFD)
A diagram illustrating the sequence of processes identified above is illustrated below:
PricewaterhouseCoopers Water Services Trust Fund 36 Financial Management Manual (Draft)
Applicant
Head of Department
Head of Department
Administration
Accountant
Accountant
Accountant
1. Complete and sign an Imprest Application Form (IAF) either for travel on WSTF assignment /conferences/ meetings or to undertake activities which are included in the approved work plan and budget for the period.
2. Review the IAF to confirm activity is within our work plan and budget for the period. Also check reasonableness of rates and quantities used. Approve, if satisfied and forward the IAF to the CEO.
3. Review IAF and if satisfied, authorise travel or activity. (CEO and Chairperson of WSTF may approve out of country applications)
4. If ticket or other procurement required, observe appropriate procurement procedures. Forward documents for payment to Finance.
5. Observe payment procedures to process payments.
6. Record the advance payment in the cash book. Also update the Imprest Ledger to reflect the debit on the imprest holder’s account.
Dr. Imprest Holder (specific)Cr. Bank/Cash.
7. File Documents.
1.
2.
3.
4.
5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Travel and Activity Imprest Application
WSTF: IMPRESTS – TRAVEL AND ACTIVITY
Applicant
Head of Department
Head of Department
Administration
Accountant
Accountant
Accountant
1. Complete and sign an Imprest Application Form (IAF) either for travel on WSTF assignment /conferences/ meetings or to undertake activities which are included in the approved work plan and budget for the period.
2. Review the IAF to confirm activity is within our work plan and budget for the period. Also check reasonableness of rates and quantities used. Approve, if satisfied and forward the IAF to the CEO.
3. Review IAF and if satisfied, authorise travel or activity. (CEO and Chairperson of WSTF may approve out of country applications)
4. If ticket or other procurement required, observe appropriate procurement procedures. Forward documents for payment to Finance.
5. Observe payment procedures to process payments.
6. Record the advance payment in the cash book. Also update the Imprest Ledger to reflect the debit on the imprest holder’s account.
Dr. Imprest Holder (specific)Cr. Bank/Cash.
7. File Documents.
1.
2.
3.
4.
5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Travel and Activity Imprest Application
WSTF: IMPRESTS – TRAVEL AND ACTIVITY
Complete IAF
IAF
Review and approve
Review and sign IAF
Ticket purchase
To purchase of ticket
To payment procedures
Record imprestadvance
File
PricewaterhouseCoopers Water Services Trust Fund 37 Financial Management Manual (Draft)
Advance Holder
Head of Department
Accountant
Accountant
Accountant
Accountant
1. To account for travel/activity imprest, fill in a Personal Expenditure Form (PEF) within 14 days of returning to office, to account for the imprest. Where a flat per diem is used, show the number of nights actually spent and rate applied. For fuel and other activities attach supporting expenditure documentation and forward to the Head of Department.
2. Review expenditure report to ensure that all expenditure items are supported by valid receipts/vouchers. Approve and forward to the Finance Section.
3. If there is a difference between imprest and expenditure observe payment procedure to make additional payment and receiving procedure to record funds surrendered.
4. Ensure expenditure is assigned to the correct account codes and correctly analysed by activity codes, cost centre and financier codes.
5. Record the expenditure to debit the expense accounts and credit staff imprest account
Dr. Expense (various)Cr. Imprest Holder. Also record cash
balance paid or received Back as appropriate.
6. File documents.
1.
2.
3.
4.
5.
6.
ResponsibilityProcedure StepsProcess Flow
Accounting for Imprests
WSTF: IMPRESTS – TRAVEL AND ACTIVITY
Advance Holder
Head of Department
Accountant
Accountant
Accountant
Accountant
1. To account for travel/activity imprest, fill in a Personal Expenditure Form (PEF) within 14 days of returning to office, to account for the imprest. Where a flat per diem is used, show the number of nights actually spent and rate applied. For fuel and other activities attach supporting expenditure documentation and forward to the Head of Department.
2. Review expenditure report to ensure that all expenditure items are supported by valid receipts/vouchers. Approve and forward to the Finance Section.
3. If there is a difference between imprest and expenditure observe payment procedure to make additional payment and receiving procedure to record funds surrendered.
4. Ensure expenditure is assigned to the correct account codes and correctly analysed by activity codes, cost centre and financier codes.
5. Record the expenditure to debit the expense accounts and credit staff imprest account
Dr. Expense (various)Cr. Imprest Holder. Also record cash
balance paid or received Back as appropriate.
6. File documents.
1.
2.
3.
4.
5.
6.
ResponsibilityProcedure StepsProcess Flow
Accounting for Imprests
WSTF: IMPRESTS – TRAVEL AND ACTIVITY
Complete PEF
PEF
Review PEF
Imprest = Expense ?
YES
NOTo payment
Analyse expenditure
Record
File
PricewaterhouseCoopers Water Services Trust Fund 38 Financial Management Manual (Draft)
Accountant
Finance Manager
CEO
Accountant
Accountant
1. Monthly generate an aged unsurrendered imprest report and forward to the Finance Manager.
2. Review the unsurrendered report and notify individuals with unaccounted for imprests. Obtain authorisation from the CEO to deduct unaccounted for imprestsfrom staff member’s salary.
3. Approve the imprest recovery schedule.
4. Recover unaccounted for imprests through the payroll once approval is received from the CEO.
5. File Reports.
1.
2.
3.
4.
5.
ResponsibilityProcedure StepsProcess Flow
Unsurrendered Imprests
WSTF: IMPRESTS – TRAVEL AND ACTIVITY
Accountant
Finance Manager
CEO
Accountant
Accountant
1. Monthly generate an aged unsurrendered imprest report and forward to the Finance Manager.
2. Review the unsurrendered report and notify individuals with unaccounted for imprests. Obtain authorisation from the CEO to deduct unaccounted for imprestsfrom staff member’s salary.
3. Approve the imprest recovery schedule.
4. Recover unaccounted for imprests through the payroll once approval is received from the CEO.
5. File Reports.
1.
2.
3.
4.
5.
ResponsibilityProcedure StepsProcess Flow
Unsurrendered Imprests
WSTF: IMPRESTS – TRAVEL AND ACTIVITY
Generate report
UnsurrenderedImprest Report
Review report
Approve to deduct
Deduct
File
PricewaterhouseCoopers Water Services Trust Fund 39 Financial Management Manual (Draft)
9 Payroll Procedures
9.1 Purpose The purpose of the payroll system is to ensure:
• Complete and accurate data capture and payroll processing
• Production of all required reports in a timely manner
• Employees are paid in accordance with letters of appointment
• There is adequate security over payroll data
• Statutory and voluntary deductions are properly accounted for and remitted to the appropriate authorities
• Payroll expense is forwarded to the General Ledger system.
9.2 Policy
WSTF will issue appointment letters to all newly employed staf f and the payroll processing will be in line with the Terms and Conditions of Service of each category of staff.
The Finance Department shall not make payroll changes without the express authority of the Finance Manager.
Tax will be deducted on all taxable pay in accordance with relevant tax law.
WSTF will comply with local labour laws, regulations governing employment and provisions of specific employment contracts.
To avoid the risk inherent in carrying large sums of money and minimise the risk of loss of payroll frauds, all staff will be required to operate bank accounts through which their salaries will be paid. Cash cheques will only be used on a temporary basis to allow new staff adequate time to open bank accounts.
The payroll will be prepared on a monthly basis. The Finance Manager will ensure that this is prepared by the 20th of every month. Salary bank transfer instructions and the salary cheque will be forwarded to the bank on or before 23r d of every month to ensure salaries are credited to employee bank accounts before the end of the month.
Payroll reports (net salaries, statutory and non-statutory deductions) will be reviewed by the Finance Manager and verified by the Administration and Human Resource Manager. Once approved, they will be forwarded to the Chairperson for authorisation of payments.
PricewaterhouseCoopers Water Services Trust Fund 40 Financial Management Manual (Draft)
9.3 Description This section only provides the payroll preparation procedures. Details on other personnel procedures will be included in the WSTF personnel policies and procedures manual.
For the purposes of payroll processing, the Finance Department will receive a Payroll Change Advice from the Human Resources Manager with the following employee details:
• Full name, • Payroll number (provided by the system/HR Dept), • Position, • Department, • Bank Name & Branch, • Bank Account Number, • Statutory registration numbers (PIN, NSSF, NHIF,ID), • Other registration numbers (Co-operative, HELB, etc), • Emoluments details, • The birth date. • The appointment date. On receipt of the Payroll Change Advice, the Finance Manager will review and sign it for processing in the payroll system. Staff advances shall be paid out in accordance with the provisions of the Terms and Conditions of Service.
The Finance Manager will ensure strict compliance with the law in regard to taxes and other statutory deductions. He will ensure that WSTF obtains all the pertinent information regarding statutory deductions and complies with them. Such information can be obtained from Kenya Revenue Authority, NSSF, NHIF, the print media (e.g. Kenya Gazette) etc. Penalties due to non-compliance resulting from the negligence of an officer shall be recovered from that officer.
It will be the duty of the Finance Manager to ensure recoveries are effected on a timely basis. Payroll reports (net salaries, statutory and non -statutory deductions) will be reviewed by the Finance Manager and verified by the Administration and Human Resources Manager. Once approved, they will be forwarded to the CEO, WSTF for authorisation of the payments.
9.4 Data Flow Diagram (DFD)
A diagram illustrating the sequence of processes identified above is illustrated below:
PricewaterhouseCoopers Water Services Trust Fund 41 Financial Management Manual (Draft)
Administration andHuman ResourcesManager
Finance Manager
Accountant
Finance Manager
Administration andHuman ResourcesManager
Finance Manager
Accountant
1. Update employee file with payroll changes and prepare a Payroll Change Advice. This could be for new staff, termination, change in salary or other payroll items. Forward to the Finance Manager.
2. Review and approve Payroll Change Advice for input into the payroll systems.
3. Input changes to payroll (new staff, pay change, termination etc).
4. Review payroll data and confirm correct input of changes.
5. Review payroll update report and if okay sign and return to Finance Manager. Indicate if there are amendments to be made.
6. Receive reports and if changes signed by Human Resources Manager forward to Accountant for filing.
7. File update reports.
1.
2.
3.
4.
5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Updating Payroll Records
WSTF: PAYROLL PROCEDURES MANUAL
Administration andHuman ResourcesManager
Finance Manager
Accountant
Finance Manager
Administration andHuman ResourcesManager
Finance Manager
Accountant
1. Update employee file with payroll changes and prepare a Payroll Change Advice. This could be for new staff, termination, change in salary or other payroll items. Forward to the Finance Manager.
2. Review and approve Payroll Change Advice for input into the payroll systems.
3. Input changes to payroll (new staff, pay change, termination etc).
4. Review payroll data and confirm correct input of changes.
5. Review payroll update report and if okay sign and return to Finance Manager. Indicate if there are amendments to be made.
6. Receive reports and if changes signed by Human Resources Manager forward to Accountant for filing.
7. File update reports.
1.
2.
3.
4.
5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Updating Payroll Records
WSTF: PAYROLL PROCEDURES MANUAL
Payroll change advice
Update employee file
Updated report
From personnel procedures
Review and approve payroll
update
Input new changes
Review new inputs
Review payroll update
Review report and forward
for filing
File
PricewaterhouseCoopers Water Services Trust Fund 42 Financial Management Manual (Draft)
Accountant
Finance Manager
Administration and Human ResourcesManager
Finance Manager
Accountant
Accountant
Accountant
1. Generate payroll reports, including payslips, bank transfers, statutory and other deductions no later than the 20th of every month.
2. Review payroll reports, ensure errors noted are rectified, sign and forward to the Human Resources Manager.
3. Review Monthly payroll reports, sign and return to Finance.
4. Obtain signatories for bank transfer letter (same as cheque) and despatch to the bank for money transfer to the respective employee bank accounts.
5. Observe payment procedures to pay monthly statutory and other deductions.
6. Update the General Ledger with the payments by debiting the various expense accounts with the payroll related payments as follows:
ENTRIES TO GENERAL LEDGER:Dr. Payroll Expenses (various
accounts)Cr. Payroll Liabilities (various)ENTRY ON PAYMENTDr. Payroll Liabilities (various) Cr. Bank
7. File Documents
1.
2.
3.
4.
5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Monthly Payroll Processing
WSTF: PAYROLL PROCEDURES MANUAL
Accountant
Finance Manager
Administration and Human ResourcesManager
Finance Manager
Accountant
Accountant
Accountant
1. Generate payroll reports, including payslips, bank transfers, statutory and other deductions no later than the 20th of every month.
2. Review payroll reports, ensure errors noted are rectified, sign and forward to the Human Resources Manager.
3. Review Monthly payroll reports, sign and return to Finance.
4. Obtain signatories for bank transfer letter (same as cheque) and despatch to the bank for money transfer to the respective employee bank accounts.
5. Observe payment procedures to pay monthly statutory and other deductions.
6. Update the General Ledger with the payments by debiting the various expense accounts with the payroll related payments as follows:
ENTRIES TO GENERAL LEDGER:Dr. Payroll Expenses (various
accounts)Cr. Payroll Liabilities (various)ENTRY ON PAYMENTDr. Payroll Liabilities (various) Cr. Bank
7. File Documents
1.
2.
3.
4.
5.
6.
7.
ResponsibilityProcedure StepsProcess Flow
Monthly Payroll Processing
WSTF: PAYROLL PROCEDURES MANUAL
Run payroll
Review monthly payroll reports
Review monthly payroll reports
Net salary bank transfer to bank
Statutory and non statutory deductions to payment procedures
Update A/C system with payroll transactions
File
Monthly payroll report
PricewaterhouseCoopers Water Services Trust Fund 43 Financial Management Manual (Draft)
10 Fixed Assets System
10.1 Purpose The purpose of the fixed assets system is to ensure that:
All assets are safeguarded by recording their details and monitoring their location, condition and usage
There is proper maintenance of a fixed assets register, appropriately designed to include all information necessary to properly record and control fixed assets
There is proper accounting for fixed assets.
10.2 Policy
10.2.1 Fixed assets
Fixed assets or plant and equipment refer to long lived assets acquired for use in the operation of an organisation. In the case of WSTF, these will include office equipment and computers, vehicles, furniture and fittings.
The cost of fixed assets will include all expenditures reasonable and necessary in acquiring the asset and placing it in a position and condition for use in WSTF’s operations. This will mainly include the cash outlay necessary in acquiring the asset plus any incidental costs (e.g. expenditures for freight, insurance while in transit, installation and any other costs necessary to make the asset ready for use).
On receipt, each asset will be verified and assigned a unique tag number and recorded in detail in the Fixed Assets Register. The Fixed Assets Register shall have the following information for each asset:
• Description of asset including model and serial number, • Date of purchase and cost, • The tag number, • Class and category of asset, • General and specific location. • Condition.
Management will ensure that independent physical verifications are regularly conducted. Any discrepancies will be investigated and corrective action taken.
PricewaterhouseCoopers Water Services Trust Fund 44 Financial Management Manual (Draft)
10.2.2 Capitalisation Policy
Fixed assets with a minimum value of Kshs 50,000 individually or collectively and a life of three years or more will be capitalised and depreciation computed on these. Assets costing less than Kshs 50,000 will be expensed in the year of purchase and will be recorded in a stores register for control purposes. Small items like staplers and punches will be treated as consumables and controlled using a stores ledger card.
10.2.3 Depreciation
The straight-line method of depreciation will be used. This will allocate the cost of the depreciable asset uniformly over its expected useful li fe. The annual depreciation will be based on the full acquisition cost of the depreciable asset, net of its salvage value, as applicable. The rate will apply from the date the asset is placed into use until it is disposed off/written off or until it is fully depreciated, whichever occurs first. Sets of assets e.g. office furniture, purchased at a single point in time should be considered a single asset for depreciation, even if individual components of the set cost less than the minimum value for capitalisation.
The following rates will be used in computing depreciation:
Class Name Estimated Useful life Depreciation rate 1 Motor Vehicles 4 years 25% 2 Computer equipment 3 years 33% 3 Office equipment 4 years 25% 4 Office furniture & fittings 5 years 20%
10.2.4 Disposal of fixed assets
Disposal of assets will be effected only on the recommendation of the Finance and Procurement Committee and approved by the Trustees. Fixed Assets shall be disposed off after valuation and the disposal procedure shall be by open tender, public auction or private treaty (to members of staff). In all cases, the disposal shall be subject to a reserve price.
10.2.5 Control over fixed assets usage
Fixed assets usage will be controlled through the use of the following forms:
• Transport requisition form • Vehicle movement register (work tickets) • Fixed assets movement register • Authority for movement of fixed assets form.
PricewaterhouseCoopers Water Services Trust Fund 45 Financial Management Manual (Draft)
10.2.6 Insurance arrangements
Insurance is a vital component of WSTF’s operations. Insurance should cover the following risks among others:
• Fire • Burglary • Motor vehicle insurance The CEO shall be responsible for effecting all insurance covers with reputable insurers on behalf of the Trustees. The CEO will negotiate claims and where necessary in consultation with other officers. Adequate insurance registers shall be kept and policy documents kept in safe custody by the Finance Manager.
10.3 Data Flow Diagram (DFD) A diagram illustrating the sequence of processes identified above is illustrated below:
PricewaterhouseCoopers Water Services Trust Fund 46 Financial Management Manual (Draft)
End User or Headof Department
CEO
Finance Manager
Finance Manager
CEO and Trustees
Procurement
Stores/Appropriate Technical Expert
Stores
1. Raise and sign fixed assets purchase requisition.
2. Approve purchase if within approved work-plan and budget. Forward to Finance Department.
3. Check that requisition is included in the approved work-plan and is within budget. If not, return requisition to budget holder with an explanatory note.
4. If within budget indicate availability of funds and forward to CEO.
5. Approve purchase of fixed assets and forward to procurement.
6. Observe appropriate procurement procedures to select supplier and acquire asset.
7. Receive purchased item and inspect to ensure that the condition is satisfactory and is in accordance with the terms and conditions of the related purchase contract. If the item is technical in nature, get an expert to test and certify quality condition. Assign a unique tag number to the asset using the WSTF asset coding register and complete a Goods Received Note
8. Physically tag the fixed asset and forward copy of GRN, the invoice and relevant supporting documents to Finance Department.
1.
2.
3.
4.
5.
6.
7.
8.
ResponsibilityProcedure StepsProcess Flow
Fixed Assets Acquisition, Recording and Depreciation
WSTF: FIXED ASSETS SYSTEMS USER PROCEDURES
End User or Headof Department
CEO
Finance Manager
Finance Manager
CEO and Trustees
Procurement
Stores/Appropriate Technical Expert
Stores
1. Raise and sign fixed assets purchase requisition.
2. Approve purchase if within approved work-plan and budget. Forward to Finance Department.
3. Check that requisition is included in the approved work-plan and is within budget. If not, return requisition to budget holder with an explanatory note.
4. If within budget indicate availability of funds and forward to CEO.
5. Approve purchase of fixed assets and forward to procurement.
6. Observe appropriate procurement procedures to select supplier and acquire asset.
7. Receive purchased item and inspect to ensure that the condition is satisfactory and is in accordance with the terms and conditions of the related purchase contract. If the item is technical in nature, get an expert to test and certify quality condition. Assign a unique tag number to the asset using the WSTF asset coding register and complete a Goods Received Note
8. Physically tag the fixed asset and forward copy of GRN, the invoice and relevant supporting documents to Finance Department.
1.
2.
3.
4.
5.
6.
7.
8.
ResponsibilityProcedure StepsProcess Flow
Fixed Assets Acquisition, Recording and Depreciation
WSTF: FIXED ASSETS SYSTEMS USER PROCEDURES
Raise requisition
Approve requisition
Check against work plan
Approve purchase
Forward to CEO if ok
Procurement procedures
Receive item and verify
GRN and Invoice
Physically tag asset
To 9
PricewaterhouseCoopers Water Services Trust Fund 47 Financial Management Manual (Draft)
Accountant
Accountant
Accountant
Accountant
9. Receive Goods Received Note for the asset and invoice duly certified by receiving officer/stores.
10. Record the fixed assets in the register. Debit the correct code and credit bank account.
11. Review the fixed assets journal and post to the General Ledger. Print a journal for reference purpose.
12. File Journal and supporting documents.
10.
11.
12.
WSTF: FIXED ASSETS SYSTEMS USER PROCEDURES
Accountant
Accountant
Accountant
Accountant
9. Receive Goods Received Note for the asset and invoice duly certified by receiving officer/stores.
10. Record the fixed assets in the register. Debit the correct code and credit bank account.
11. Review the fixed assets journal and post to the General Ledger. Print a journal for reference purpose.
12. File Journal and supporting documents.
10.
11.
12.
WSTF: FIXED ASSETS SYSTEMS USER PROCEDURES
Update FAR with
acquisition
Update GL with
acquisition
File
From 8
PricewaterhouseCoopers Water Services Trust Fund 48 Financial Management Manual (Draft)
Finance Manager
Accountant
Finance Manager
Accountant
Finance Manager
Accountant
1. Receive fixed asset disposal report from Administration. Review report and prepare a journal to record the disposal by:
Debit: Respective accumulated depreciation account
Credit: Respective fixed assets account
Debit/Credit: Loss or gain from disposal.
2. Update fixed assets register with disposal.
3. Review journal and post to update General Ledger Accounts.
4. Generate disposal report and print it.
5. Review report and sign.
6. File report for reference and audit purpose.
1.
2.
3.
4.
5.
6.
ResponsibilityProcedure StepsProcess Flow
Recording Fixed Assets Disposals
WSTF: FIXED ASSETS SYSTEMS USER PROCEDURES
Finance Manager
Accountant
Finance Manager
Accountant
Finance Manager
Accountant
1. Receive fixed asset disposal report from Administration. Review report and prepare a journal to record the disposal by:
Debit: Respective accumulated depreciation account
Credit: Respective fixed assets account
Debit/Credit: Loss or gain from disposal.
2. Update fixed assets register with disposal.
3. Review journal and post to update General Ledger Accounts.
4. Generate disposal report and print it.
5. Review report and sign.
6. File report for reference and audit purpose.
1.
2.
3.
4.
5.
6.
ResponsibilityProcedure StepsProcess Flow
Recording Fixed Assets Disposals
WSTF: FIXED ASSETS SYSTEMS USER PROCEDURES
From administration
Disposal report and support documents
Receive disposal report
Update FAR with disposal
Update GL with disposal
Generate disposal report
Review disposal report
File
PricewaterhouseCoopers Water Services Trust Fund 49 Financial Management Manual (Draft)
Accountant
Finance Manager
Finance Manager
Accountant
Finance Manager
Accountant
1. Periodically and prior to preparation of reports, run depreciation for the period.
2. Review the depreciation journal and post debit to depreciation accounts and credit to accumulated depreciation accounts in the General Ledger.
3. Select user defined depreciation report in the system and print it for the relevant period.
4. Prepare and print the Fixed Assets movement report for the relevant period.
5. Review periodical fixed Assets reports and sign them.
6. File reports.
1.
2.
3.
4.
5.
6.
ResponsibilityProcedure StepsProcess Flow
Recording Fixed Assets Disposals
WSTF: FIXED ASSETS SYSTEMS USER PROCEDURES
Accountant
Finance Manager
Finance Manager
Accountant
Finance Manager
Accountant
1. Periodically and prior to preparation of reports, run depreciation for the period.
2. Review the depreciation journal and post debit to depreciation accounts and credit to accumulated depreciation accounts in the General Ledger.
3. Select user defined depreciation report in the system and print it for the relevant period.
4. Prepare and print the Fixed Assets movement report for the relevant period.
5. Review periodical fixed Assets reports and sign them.
6. File reports.
1.
2.
3.
4.
5.
6.
ResponsibilityProcedure StepsProcess Flow
Recording Fixed Assets Disposals
WSTF: FIXED ASSETS SYSTEMS USER PROCEDURES
Run depreciation
Update GL with
depreciation
Print depreciation
report
Print FA movement
report
Review periodical
reports
File
PricewaterhouseCoopers Water Services Trust Fund 50 Financial Management Manual (Draft)
11 WSTF Accounting and Reporting Procedures
11.1 WSTF accounting policies
11.1.1 Income
WSTF income will be recognised when funds are received. Funds will be received from the Government of Kenya and from donor agencies in the form of grants and donations. These funds will be pooled and recognized as income. Specific grants received from donors and allocated for specific purposes and not pooled will be recognised as other income.
11.1.2 WSTF expenses
Expenditure will be recognised when payments are made. WSTF beneficiaries and project implementers will report quarterly and activity progress reports will include expenditure reports. Expenditure incurred but not paid for will be treated as a commitment to pay. Other WSTF commitments such as purchase orders will also be monitored. All commitments will be reported under appropriate categories for budgetary control purposes.
11.1.3 WSTF assets
For reporting to GoK and other donors, assets will be expensed in full and the amount reflected in the income and expenditure report for the period in which they are purchased. For WSTF internal purposes, a memorandum balance sheet will be maintained in which fixed assets will be capitalised and depreciated over their useful lives.
11.1.4 WSTF balance sheet
WSTF accounting system will be cash based. A memorandum balance sheet will be prepared outside the accounting software to classify WSTF resources under investments (including fixed assets) and operations and show how these are funded.
11.1.5 Reporting
Sample formats of WSTF financial reporting forms are included in Appendix 3.
11.2 Reporting and data analysis requirements The WSTF accounting system will be designed to facilitate timely generation of periodic financial management reports. To efficiently produce these reports, the accounting transactions need to be analysed in a number of ways, including:
• Expenditure categories and sub categories • Components and activities • Source of funds
PricewaterhouseCoopers Water Services Trust Fund 51 Financial Management Manual (Draft)
• Institution and units/cost centres • Location • Timeframe - date and periods. • Geographic location of projects A brief description of the identified analysis dimensions is provided below.
(To be developed upon discussion with WSTF team)
11.2.1 Dimension 1: Category of expenditure:
The Categories of Expenditure (COE) for reporting will be as follows:
• Office Expenses • Disbursements to Projects • Project Management and Capacity Building Expenses The above categories will be further broken down as follows:
Head office Expenses will include costs specifically incurred at the head office and arising from head office operations as outlined in section 3.2.1. A number of these expenditure sub-categories would include:
• Printing, photocopying and stationery • Workshops and Hire of facilities • Head Office Staff Training • Travel and Accommodation • Advertising and exhibitions • Utilities • Audit and consultancies • Bank charges and commissions • Vehicle running and maintenance costs • Repairs and maintenance-non vehicle • Insurance–non-vehicle • Other expenses -miscellaneous Disbursements to Projects
These are those funds disbursed to projects which have been approved based on procedures outlined in the WSTF Operations Manual. Projects receiving funds will then be grouped into the following sub-categories based on the nature of the intervention:
• Transmission Systems – including piped-gravity and piped-pumping schemes and open ducts • Non-transmission Systems – including boreholes and shallow wells, rain water harvesting (rain
water catchment), dams, pans etc • Sanitation and Hygiene Promotion • Training and Capacity Building
PricewaterhouseCoopers Water Services Trust Fund 52 Financial Management Manual (Draft)
Project Management and Capacity Building
This category includes expenses incurred in managing projects which are ongoing at project sites. As the funded projects are envisioned to be demand driven, these expenses will be those incurred in backstopping by technical s taff from the head office and would include:
• Travel and Accommodation • Vehicle running and maintenance costs • Printing, photocopy and stationery
11.2.2 Dimension 2: Project components and activities
The main project components are based on the identified priority areas as listed in section 3.2.2. These will include the following: • Promotion of Transmission Systems • Promotion of Non-Transmission Systems • Promotion of Sanitation and Hygiene • Training and Capacity Building
11.2.3 Dimension 3: Source of funds
Expenditure reporting will also be done according to the following possible funding sources for the WSTF;
• GoK • Various donors
11.2.4 Dimension 4: Institution
Expenditure reporting and data analysis will also occur according to WSTF Units and Cost Centres, which include:
• Finance & Resource Mobilization Department • Technical Appraisal Department – Transmission Systems • Technical Appraisal Department – Non-Transmission Systems • Field Co-ordination Department • Administration and Human Resources Department • Sanitation and Hygiene Dept • CEO
11.2.5 Dimension 5: Timeframe
PricewaterhouseCoopers Water Services Trust Fund 53 Financial Management Manual (Draft)
Beneficiaries of WSTF funding will be required to prepare quarterly and annual progress reports and end of project reports. WSTF management will consolidate these reports and will prepare quarterly and annual reports for presentation to the Trustees. A monitoring and evaluation report will be prepared by WSTF management half-yearly.
The copies of the consolidated reports will be forwarded to the Trustees and through the MWI to the GoK and other donors.
11.3 Reports from beneficiaries and preparation of consolidated reports All beneficiary projects will be expected to report on a timely basis to WSTF management. The minimum reporting requirements would include:
• Quarterly progress and financial reports • Annual progress reports • An end of project report WSTF management will consolidate all the reports received from the beneficiaries and produce consolidated quarterly and annual progress and financial reports. As WSTF head office will also produce quarterly and annual progress and financial reports, these will be consolidated with the quarterly and annual project beneficiary reports. Copies of consolidated reports are then forwarded to the Board of trustees and subsequently to the donors and to the GoK through MWI. The consolidated reports are a basis for audits and programme reviews by the Auditor General and other auditors appointed by the GoK, donors and WSTF Trustees.
11.4 Project auditing arrangements As outlined in section 11.3 above, a consolidated expenditure report will be prepared for all expenses incurred by WSTF annually and this expenditure report will be the basis of audits. WSTF accounts shall be audited and reported on annually by the Kenya National Audit Office or by an auditor in accordance with the Public Audit Act, 2003.
PricewaterhouseCoopers Water Services Trust Fund 54 Financial Management Manual (Draft)
APPENDIX 1: Structure of Accounts
Detailed Structure of Accounts
100000 INCOME Pooled
Funds
GoK Donors Others Project
Specific Funds
GoK Donors Others 200000 EXPENDITURE 10000 Head Office
Expenses
Personnel Emoluments 1 Basic salary 2 House Allowance 3 Out-Patient medical
Allowance 4 Commuter
Allowance 5 Entertainment
Allowance 6 Leave Allowance 7 Overtime Allowance 8 Acting Allowance 9 Special Duty
Allowance 10 Payment in Lieu of
Leave 11 Casual Wages 12 Pension Payments 13 NHIF Payments 14 NSSF Payments 15 Disturbance
Allowance Motor Vehicle Expenses 1 Fuel Expenses 2 Repairs and
Maintenance 3 Insurance
PricewaterhouseCoopers Water Services Trust Fund 55 Financial Management Manual (Draft)
Travel and
Accommodation
1 Local Travel 2 International Travel Utilities 1 Water 2 Electricity Telephone and Postal
Expenses
1 Fixed Phone Charges
2 Postal Expenses 3 Mobile Phone Costs 4 Internet Access
Costs Insurance (Non-Motor) 1 Property 2 Staff 3 Public Liability Board Expenses 1 Allowances 2 Insurance Office Running Expenses 1 Sundry Expenses 2 Repairs and
Maintenance Bank Charges 1 Charges on
Deposits 2 Other Bank Charges Staff Training Costs 1 Training Fees 2 Hire of Facilities Staff Expenses 1 Staff Welfare 2 Medical Expenses Consultancies 1 External Audit Costs 2 Legal Fees 3 Miscellaneous
Consultancies Advocacy and Advertising 1 Media
Advertisements 2 Promotional
Activities
PricewaterhouseCoopers Water Services Trust Fund 56 Financial Management Manual (Draft)
Printing and Stationery 1 Stationery 2 Printing 20000 Financing to
Projects
Surface Water Distribution 1 Piped Gravity 2 Piped Pumping 3 Open Ducts Ground Water Distribution 1 Boreholes and
Shallow Wells 2 Rainwater
Harvesting 3 Dams and Pans Sanitation and Hygiene Training and Capacity
Building
30000 Project
Management and Capacity Building
Travel and Accommodation Vehicle Running and
Maintenance
Stationery and Photocopying Consultancies 300000 ASSETS Current
Assets
Bank Account 1 Pooled Funds
Bank Account 2 Specific Project Funds
Petty Cash Staff Debtors Other Debtors Fixed
Assets
Furniture and Fittings Motor Vehicles Computer Equipment Field Equipment Depreciation Furn & Fittings Depreciation Motor Vehicles Depreciation Computer
PricewaterhouseCoopers Water Services Trust Fund 57 Financial Management Manual (Draft)
Equipment Depreciation Fi eld
Equipment
400000 LIABILITIES Suppliers 500000 CAPITAL
ACCOUNTS
Initial GoK Contribution
Surplus Carried Forward
600000 CLEARING
ACCOUNTS
PricewaterhouseCoopers Water Services Trust Fund 58 Financial Management Manual (Draft)
APPENDIX 2: Accounting Forms
ACCOUNTING FORMS – Form WSTF AF1
PHONE FAXADDRESS
WATER SERVICES TRUST FUNDPHONE FAXADDRESS
WATER SERVICES TRUST FUND
DATENUMBERGOODS RECEIVED NOTE DATENUMBERGOODS RECEIVED NOTE
GOODS RECEIVED FROMGOODS RECEIVED FROM
COST CENTRECOMPONENT / ACTIVITY
EXPENSE CATEGORYITEM CODE
COST CENTRECOMPONENT / ACTIVITY
EXPENSE CATEGORYITEM CODE
TOTAL
TOTALUNIT PRICEQTYITEM DESCRIPTION
TOTAL
TOTALUNIT PRICEQTYITEM DESCRIPTION
DATESIGNAPPROVED BY
DATESIGNRECEIVED BY
INVOICE NUMBER
DELIVERY NOTE NUMBERPURCHASE ORDER NUMBER
DATESIGNAPPROVED BY
DATESIGNRECEIVED BY
INVOICE NUMBER
DELIVERY NOTE NUMBERPURCHASE ORDER NUMBER
PricewaterhouseCoopers Water Services Trust Fund 59 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF2
PHONE FAXADDRESS
WATER SERVICES TRUST FUNDPHONE FAXADDRESS
WATER SERVICES TRUST FUND
DATENUMBERPURCHASE ORDER DATENUMBERPURCHASE ORDER
NAME OF SUPPLIERNAME OF SUPPLIER
COST CENTRECOMPONENT / ACTIVITY
EXPENSE CATEGORYITEM CODE
COST CENTRECOMPONENT / ACTIVITY
EXPENSE CATEGORYITEM CODE
PLEASE SUPPLY THE FOLLOWING GOODS
TOTAL
TOTALUNIT PRICEQTYITEM DESCRIPTION
PLEASE SUPPLY THE FOLLOWING GOODS
TOTAL
TOTALUNIT PRICEQTYITEM DESCRIPTION
DATESIGNAUTHORISED BY
DATESIGNAPPROVED BY
DATESIGNREQUESTED BY
QUOTATION NUMBER AND DATE
DATESIGNAUTHORISED BY
DATESIGNAPPROVED BY
DATESIGNREQUESTED BY
QUOTATION NUMBER AND DATE
PricewaterhouseCoopers Water Services Trust Fund 60 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF3
PHONE FAXADDRESS
WATER SERVICES TRUST FUNDPHONE FAXADDRESS
WATER SERVICES TRUST FUND
DATENUMBERGOODS & SERVICES REQUISITION FORM DATENUMBERGOODS & SERVICES REQUISITION FORM
NAME OF STAFF REQUESTINGNAME OF STAFF REQUESTING
COST CENTRECOMPONENT / ACTIVITY
EXPENSE CATEGORYITEM CODE
COST CENTRECOMPONENT / ACTIVITY
EXPENSE CATEGORYITEM CODE
REQUEST FOR THE FOLLOWING GOODS / SERVICES
TOTAL
TOTALUNIT PRICEQTYITEM DESCRIPTION & PURPOSE REQUIRED
REQUEST FOR THE FOLLOWING GOODS / SERVICES
TOTAL
TOTALUNIT PRICEQTYITEM DESCRIPTION & PURPOSE REQUIRED
DATESIGNAUTHORISED BY
DATESIGNAPPROVED BY
DATESIGNREQUESTED BY
QUOTATION NUMBER AND DATE
DATESIGNAUTHORISED BY
DATESIGNAPPROVED BY
DATESIGNREQUESTED BY
QUOTATION NUMBER AND DATE
PricewaterhouseCoopers Water Services Trust Fund 61 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF4
PHONE FAXADDRESS
WATER SERVICES TRUST FUNDPHONE FAXADDRESS
WATER SERVICES TRUST FUND
DATENUMBERPAYMENT VOUCHER DATENUMBERPAYMENT VOUCHER
NAME OF PAYEENAME OF PAYEE
COST CENTRECOMPONENT / ACTIVITY
EXPENSE CATEGORYITEM CODE
COST CENTRECOMPONENT / ACTIVITY
EXPENSE CATEGORYITEM CODE
PAYMENT BEING MADE FOR THE FOLLOWING ITEMS
TOTAL
TOTALUNIT PRICEQTYITEM DESCRIPTION
PAYMENT BEING MADE FOR THE FOLLOWING ITEMS
TOTAL
TOTALUNIT PRICEQTYITEM DESCRIPTION
INVOICE NUMBERPURCHASE ORDER NUMBER
DATESIGNAUTHORISED BY
DATESIGNAPPROVED BY
DATESIGNCHECKED BY
DELIVERY NOTE NUMBERGOODS RECEIVED NOTE NO.
INVOICE NUMBERPURCHASE ORDER NUMBER
DATESIGNAUTHORISED BY
DATESIGNAPPROVED BY
DATESIGNCHECKED BY
DELIVERY NOTE NUMBERGOODS RECEIVED NOTE NO.
PricewaterhouseCoopers Water Services Trust Fund 62 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF5
PHONE FAXADDRESS
WATER SERVICES TRUST FUNDPHONE FAXADDRESS
WATER SERVICES TRUST FUND
DATENUMBERRECEIPT DATENUMBERRECEIPT
COST CENTRECOMPONENT / ACTIVITY
EXPENSE CATEGORYITEM CODE
COST CENTRECOMPONENT / ACTIVITY
EXPENSE CATEGORYITEM CODE
AMOUNTCHEQUE NO. AND DETAILSCASHRECEIVED FROM AMOUNTCHEQUE NO. AND DETAILSCASHRECEIVED FROM
DATESIGNRECEIVED BY
DATESIGNCHECKED BY
DATESIGNRECEIVED BY
DATESIGNCHECKED BY
PricewaterhouseCoopers Water Services Trust Fund 63 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF6
BOOK VALUE
ACCUMULATED DEPRECIATION
COSTPURCHASE DATE
LOCATIONDESCRIPTION AND SERIAL NUMBER
ASSET CODE
BOOK VALUE
ACCUMULATED DEPRECIATION
COSTPURCHASE DATE
LOCATIONDESCRIPTION AND SERIAL NUMBER
ASSET CODE
DEPRECIATION RATEASSET CATEGORY
FIXED ASSETS REGISTER
WATER SERVICES TRUST FUND
DEPRECIATION RATEASSET CATEGORY
FIXED ASSETS REGISTER
WATER SERVICES TRUST FUND
PricewaterhouseCoopers Water Services Trust Fund 64 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF7
Bank charges as per schedule No. vv
ADJUSTED CASHBOOK BALANCE
LESS:
TOTAL
Deposits made but not shown in cashbook as per schedule No. zz
ADD
BALANCE PER CASHBOOK
Outstanding cheques as per schedule No. yy
LESS:
TOTAL
Deposits made but not shown in bank statement as per schedule No. .xx
ADD:
Balance per Bank Statement Dated dd-mm-yyyy
Bank charges as per schedule No. vv
ADJUSTED CASHBOOK BALANCE
LESS:
TOTAL
Deposits made but not shown in cashbook as per schedule No. zz
ADD
BALANCE PER CASHBOOK
Outstanding cheques as per schedule No. yy
LESS:
TOTAL
Deposits made but not shown in bank statement as per schedule No. .xx
ADD:
Balance per Bank Statement Dated dd-mm-yyyy
BANK RECONCILIATION FORM
WATER SERVICES TRUST FUND
BANK RECONCILIATION FORM
WATER SERVICES TRUST FUND
YEARMONTHDATEACC. CODE
BANK ACCOUNT NUMBERBANK ACCOUNT NAME
YEARMONTHDATEACC. CODE
BANK ACCOUNT NUMBERBANK ACCOUNT NAME
DATESIGNAPPROVED BY
DATESIGNREVIEWED BY
DATESIGNPREPARED BY
DATESIGNAPPROVED BY
DATESIGNREVIEWED BY
DATESIGNPREPARED BY
PricewaterhouseCoopers Water Services Trust Fund 65 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF8
CHEQUE PAYMENT REGISTER
WATER SERVICES TRUST FUND
CHEQUE PAYMENT REGISTER
WATER SERVICES TRUST FUND
SIGNATURE OF RECEPIENT
NAME OF RECEPIENT
AMOUNTDATEPAYEECHEQUE NUMBER SIGNATURE OF RECEPIENT
NAME OF RECEPIENT
AMOUNTDATEPAYEECHEQUE NUMBER
PricewaterhouseCoopers Water Services Trust Fund 66 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF9
IMPREST / ADVANCE APPLICATION FORM
WATER SERVICES TRUST FUND
IMPREST / ADVANCE APPLICATION FORM
WATER SERVICES TRUST FUND
AMOUNT REQUESTED IN WORDS
IMPREST FORM NO.
YES NO (Tick as appropriate)CURRENT OUTSTANING IMPRESTS?
DATE IMPREST REQUIRED
PURPOSE FOR WHICH IMPREST / ADVANCE IS REQUESTED. (Attach copy of budget and reference to approved work plan)
AMOUNT REQUESTED IN FIGURES
NAME OF STAFF
AMOUNT REQUESTED IN WORDS
IMPREST FORM NO.
YES NO (Tick as appropriate)CURRENT OUTSTANING IMPRESTS?
DATE IMPREST REQUIRED
PURPOSE FOR WHICH IMPREST / ADVANCE IS REQUESTED. (Attach copy of budget and reference to approved work plan)
AMOUNT REQUESTED IN FIGURES
NAME OF STAFF
DATESIGNAUTHORISED
DATESIGNAPPROVED
DATESIGNREVIEWED
DATESIGNAUTHORISED
DATESIGNAPPROVED
DATESIGNREVIEWED
SIGNEDNAME OF RECEPIENT
DATEAMOUNT OF FUNDS RECEIVED
SIGNEDNAME OF RECEPIENT
DATEAMOUNT OF FUNDS RECEIVED
PricewaterhouseCoopers Water Services Trust Fund 67 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF10
IMPREST / ADVANCE ACCOUNTING FORM
WATER SERVICES TRUST FUND
IMPREST / ADVANCE ACCOUNTING FORM
WATER SERVICES TRUST FUND
IAF NUMBER
DATE
DATE
KSHSAMOUNT ISSUED
KSHSDIFFERENCE
KSHSAMOUNT ACCOUNTED FOR
NAME OF STAFF
IAF NUMBER
DATE
DATE
KSHSAMOUNT ISSUED
KSHSDIFFERENCE
KSHSAMOUNT ACCOUNTED FOR
NAME OF STAFF
DATESIGNAUTHORISED
DATESIGNAPPROVED
DATESIGNREVIEWED
DATESIGNAUTHORISED
DATESIGNAPPROVED
DATESIGNREVIEWED
SIGNEDNAME OF STAFF
DATEKSHSAMOUNT OF CASH RETURNED
SIGNEDNAME OF STAFF
DATEKSHSAMOUNT OF CASH RETURNED
NO
TOTAL
YES
RECEIPT ATTACHED?AMOUNTEXPENDITURE DETAILSDATE
NO
TOTAL
YES
RECEIPT ATTACHED?AMOUNTEXPENDITURE DETAILSDATE
PricewaterhouseCoopers Water Services Trust Fund 68 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF11
PETTY CASH VOUCHER
WATER SERVICES TRUST FUND
PETTY CASH VOUCHER
WATER SERVICES TRUST FUND
DATE REQUESTEDPETTY CASH VOUCHER NO.
NAME OF STAFF
DATE REQUESTEDPETTY CASH VOUCHER NO.
NAME OF STAFF
DATESIGNAUTHORISED
DATESIGNAPPROVED
DATESIGNAUTHORISED
DATESIGNAPPROVED
AMOUNTPURPOSEDATE AMOUNTPURPOSEDATE
DATESIGNSIGNATURE OF RECEPIENT DATESIGNSIGNATURE OF RECEPIENT
PricewaterhouseCoopers Water Services Trust Fund 69 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF12
IMPREST APPLICATION AND SURRENDER REGISTER
WATER SERVICES TRUST FUND
IMPREST APPLICATION AND SURRENDER REGISTER
WATER SERVICES TRUST FUND
NAME OF RECEPIENT
COMMENTSAMOUNT SURRENDERED
DATE OF SURRENDER
AMOUNT ISSUED
RECEPIENT CODE
DATE IMPREST
GIVEN
IAF NO. NAME OF RECEPIENT
COMMENTSAMOUNT SURRENDERED
DATE OF SURRENDER
AMOUNT ISSUED
RECEPIENT CODE
DATE IMPREST
GIVEN
IAF NO.
PricewaterhouseCoopers Water Services Trust Fund 70 Financial Management Manual (Draft)
ACCOUNTING FORMS – Form WSTF AF13
PETTY CASH REPLENISHMENT REQUEST
WATER SERVICES TRUST FUND
PETTY CASH REPLENISHMENT REQUEST
WATER SERVICES TRUST FUND
DATE REQUESTEDPC REPLENISHMNENT REQUEST NO.
NAME OF STAFF
DATE REQUESTEDPC REPLENISHMNENT REQUEST NO.
NAME OF STAFF
DATESIGNAUTHORISED
DATESIGNAPPROVED
DATESIGNAUTHORISED
DATESIGNAPPROVED
SUPPORTING EXPENDITURE RECEIPTS ATTACHED
AMOUNT REQUESTEDDETAILSDATE
SUPPORTING EXPENDITURE RECEIPTS ATTACHED
AMOUNT REQUESTEDDETAILSDATE
DATESIGNSIGNATURE OF RECEPIENT DATESIGNSIGNATURE OF RECEPIENT
PricewaterhouseCoopers Water Services Trust Fund 71 Financial Management Manual (Draft)
APPENDIX 3: Reporting Forms
REPORTING FORMS – Form WSTF RF 1
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
KshsPiped Pumping
KshsBoreholes & WellsNon-Transmission Systems
KshsRainwater Harvesting
KshsActivity Type 1Sanitation and Hygiene
KshsActivity Type 2
KshsAll ActivitiesTraining & Capacity Building
Consultancies
Vehicle Running & Maintenance
Travel & Accommodation
Kshs PROJECT MANAGEMENT & CAPACITY BUILDING
KshsPiped GravityTransmission Systems
Kshs FINANCING TO PROJECTS
KshsElectricity
KshsWaterUtilities
KshsInternational Travel
KshsLocal TravelTravel & Accommodation
KshsRepairs and Maintenance
KshsFuel ExpensesMotor Vehicle Expenses
KshsHouse Allowance
Kshs Basic SalaryPersonnel Emoluments
Kshs HEAD OFFICE EXPENSES
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
KshsPiped Pumping
KshsBoreholes & WellsNon-Transmission Systems
KshsRainwater Harvesting
KshsActivity Type 1Sanitation and Hygiene
KshsActivity Type 2
KshsAll ActivitiesTraining & Capacity Building
Consultancies
Vehicle Running & Maintenance
Travel & Accommodation
Kshs PROJECT MANAGEMENT & CAPACITY BUILDING
KshsPiped GravityTransmission Systems
Kshs FINANCING TO PROJECTS
KshsElectricity
KshsWaterUtilities
KshsInternational Travel
KshsLocal TravelTravel & Accommodation
KshsRepairs and Maintenance
KshsFuel ExpensesMotor Vehicle Expenses
KshsHouse Allowance
Kshs Basic SalaryPersonnel Emoluments
Kshs HEAD OFFICE EXPENSES
REPORT DATE TOTAL PERIOD EXPENDITURE
KSHSREPORTING PERIOD
FINANCIAL REPORTING – CATEGORY OF EXPENDITURE
WATER SERVICES TRUST FUND
REPORT DATE TOTAL PERIOD EXPENDITURE
KSHSREPORTING PERIOD
FINANCIAL REPORTING – CATEGORY OF EXPENDITURE
WATER SERVICES TRUST FUND
PricewaterhouseCoopers Water Services Trust Fund 72 Financial Management Manual (Draft)
REPORTING FORMS – Form WSTF RF 2
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostNo. of BeneficiariesKshs Activity Type 2
Kshs Per Capita CostNo. of BeneficiariesKshs Activity Type 1
Kshs Per Capita CostNo. of BeneficiariesKshs Activity Type 2
SANITATION AND HYGIENE
Kshs Per Capita CostTotal No. of BeneficiariesKshs TRAINING & CAPACITY BLDG
Per Capita Cost Kshs No. of Beneficiaries
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
No. of Beneficiaries
No. of Beneficiaries
No. of Beneficiaries
Kshs
Kshs
Kshs
Kshs Per Capita CostRain Harvesting
Kshs Per Capita CostDams & Pans
Activity Type 1
Kshs
Kshs Per Capita CostBoreholes & Wells
Kshs NON-TRANSMISSION SYSTEMS
Per Capita CostNo. of BeneficiariesOpen Ducts
Per Capita CostNo. of BeneficiariesPiped Pumping
Per Capita CostNo. of BeneficiariesPiped Gravity
Kshs TRANSMISSION SYSTEMS
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostNo. of BeneficiariesKshs Activity Type 2
Kshs Per Capita CostNo. of BeneficiariesKshs Activity Type 1
Kshs Per Capita CostNo. of BeneficiariesKshs Activity Type 2
SANITATION AND HYGIENE
Kshs Per Capita CostTotal No. of BeneficiariesKshs TRAINING & CAPACITY BLDG
Per Capita Cost Kshs No. of Beneficiaries
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
No. of Beneficiaries
No. of Beneficiaries
No. of Beneficiaries
Kshs
Kshs
Kshs
Kshs Per Capita CostRain Harvesting
Kshs Per Capita CostDams & Pans
Activity Type 1
Kshs
Kshs Per Capita CostBoreholes & Wells
Kshs NON-TRANSMISSION SYSTEMS
Per Capita CostNo. of BeneficiariesOpen Ducts
Per Capita CostNo. of BeneficiariesPiped Pumping
Per Capita CostNo. of BeneficiariesPiped Gravity
Kshs TRANSMISSION SYSTEMS
REPORT DATE TOTAL PERIOD EXPENDITURE
KSHSREPORTING PERIOD
FINANCIAL REPORTING – PROJECT COMPONENTS & ACTIVITIES
WATER SERVICES TRUST FUND
REPORT DATE TOTAL PERIOD EXPENDITURE
KSHSREPORTING PERIOD
FINANCIAL REPORTING – PROJECT COMPONENTS & ACTIVITIES
WATER SERVICES TRUST FUND
Kshs Kshs
AVERAGE PER CAPITA COSTTOTAL NO. OF BENEFICIARIESTOTAL EXPENDITURE
Kshs Kshs
AVERAGE PER CAPITA COSTTOTAL NO. OF BENEFICIARIESTOTAL EXPENDITURE
PricewaterhouseCoopers Water Services Trust Fund 73 Financial Management Manual (Draft)
REPORTING FORMS – Form WSTF RF 3
REPORT DATE TOTAL PERIOD EXPENDITURE
KSHSREPORTING PERIOD
FINANCIAL REPORTING – COST CENTRES
WATER SERVICES TRUST FUND
REPORT DATE TOTAL PERIOD EXPENDITURE
KSHSREPORTING PERIOD
FINANCIAL REPORTING – COST CENTRES
WATER SERVICES TRUST FUND
CC1
%Printing & Stationery
%Postal Expenses
%Publicity & Advertising
%Consultancies
%Staff Expenses
%Staff Training Costs
%Bank Charges
%Office Running Expenses
%Board Expenses
%Insurance (Non-motor)
%Telephone Expenses
%Utilities
%Travel & Accommodation
%Motor Vehicle Expenses
%Personnel Emoluments
CC7CC6CC5CC4CC3CC2Allocation % CC1
%Printing & Stationery
%Postal Expenses
%Publicity & Advertising
%Consultancies
%Staff Expenses
%Staff Training Costs
%Bank Charges
%Office Running Expenses
%Board Expenses
%Insurance (Non-motor)
%Telephone Expenses
%Utilities
%Travel & Accommodation
%Motor Vehicle Expenses
%Personnel Emoluments
CC7CC6CC5CC4CC3CC2Allocation %
Field Co-ordination DepartmentCC4
CEOCC7Technical Appraisal Dept. – Non-Transmission SystemsCC3
Sanitation and Hygiene DepartmentCC6Technical Appraisal Dept. – Transmission SystemsCC2
Administration and Human Resource DepartmentCC5Finance and Resource Mobilisation DepartmentCC1
Field Co-ordination DepartmentCC4
CEOCC7Technical Appraisal Dept. – Non-Transmission SystemsCC3
Sanitation and Hygiene DepartmentCC6Technical Appraisal Dept. – Transmission SystemsCC2
Administration and Human Resource DepartmentCC5Finance and Resource Mobilisation DepartmentCC1
Cost Centre (CC) Key:
PricewaterhouseCoopers Water Services Trust Fund 74 Financial Management Manual (Draft)
REPORTING FORMS – Form WSTF RF 4
ASAL
HP
ASAL
ASAL
ASAL
HP
ASAL
ASAL
HP
HP
HP
ASAL
Kshs Per Capita CostNo. of BeneficiariesKshs District 23
Kshs Per Capita CostNo. of BeneficiariesKshs District 24
Kshs Per Capita CostNo. of BeneficiariesKshs District 13
Kshs Per Capita CostNo. of BeneficiariesKshs District 3
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostNo. of BeneficiariesKshs District 22
WATER BOARD 3
Per Capita Cost Kshs No. of Beneficiaries
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
No. of Beneficiaries
No. of Beneficiaries
No. of Beneficiaries
Kshs
Kshs
Kshs
Kshs Per Capita CostDistrict 12
Kshs Per Capita CostDistrict 14
District 21
Kshs
Kshs Per Capita CostDistrict 11
Kshs WATER BOARD 2
Per Capita CostNo. of BeneficiariesDistrict 3
Per Capita CostNo. of BeneficiariesDistrict 2
Per Capita CostNo. of BeneficiariesDistrict 1
Kshs WATER BOARD 1
ASAL
HP
ASAL
ASAL
ASAL
HP
ASAL
ASAL
HP
HP
HP
ASAL
Kshs Per Capita CostNo. of BeneficiariesKshs District 23
Kshs Per Capita CostNo. of BeneficiariesKshs District 24
Kshs Per Capita CostNo. of BeneficiariesKshs District 13
Kshs Per Capita CostNo. of BeneficiariesKshs District 3
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostTotal No. of Beneficiaries
Kshs Per Capita CostNo. of BeneficiariesKshs District 22
WATER BOARD 3
Per Capita Cost Kshs No. of Beneficiaries
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
Kshs
No. of Beneficiaries
No. of Beneficiaries
No. of Beneficiaries
Kshs
Kshs
Kshs
Kshs Per Capita CostDistrict 12
Kshs Per Capita CostDistrict 14
District 21
Kshs
Kshs Per Capita CostDistrict 11
Kshs WATER BOARD 2
Per Capita CostNo. of BeneficiariesDistrict 3
Per Capita CostNo. of BeneficiariesDistrict 2
Per Capita CostNo. of BeneficiariesDistrict 1
Kshs WATER BOARD 1
REPORT DATE TOTAL PERIOD EXPENDITURE
KSHSREPORTING PERIOD
FINANCIAL REPORTING – GEOGRAPHIC LOCATION (Disbursements to Projects)
WATER SERVICES TRUST FUND
REPORT DATE TOTAL PERIOD EXPENDITURE
KSHSREPORTING PERIOD
FINANCIAL REPORTING – GEOGRAPHIC LOCATION (Disbursements to Projects)
WATER SERVICES TRUST FUND
HIGH-POTENTIAL AREAS (HP)
ARID & SEMI ARID LANDS (ASAL)
GEOGRAPHIC REGION
KshsKshs
Kshs Kshs
AVERAGE PER CAPITA COSTTOTAL NO. OF BENEFICIARIESTOTAL EXPENDITURE
HIGH-POTENTIAL AREAS (HP)
ARID & SEMI ARID LANDS (ASAL)
GEOGRAPHIC REGION
KshsKshs
Kshs Kshs
AVERAGE PER CAPITA COSTTOTAL NO. OF BENEFICIARIESTOTAL EXPENDITURE