ADMINISTRATIVE AND FINANCIAL MANAGEMENT SYSTEMS
INTRODUCTION
This manual details SIYM International's (SI) administrative and financial management systems and is meant to facilitate the realization of effective management practices.
The manual covers the following systems: -
Personnel and travel
Non expectable property management
Procurement, and
Accounting
However, the manual shall be subject to revision and/or alteration by SI's board of directors whenever need arises.
1. 0 PERSONNEL AND TRAVEL POLICES
The SI staffing establishment shall comprise the positions of the executive Director, programme co-ordinator, field officer, gender officer, programme Accountant and the secretary & legal office.
The same shall be subject to revision from time to time by the Board of Directors.
1.1 Each position shall have a current and relevant job description. Each job description shall include the following classifications:
Job scale
Basic (specific) functions
Major duties and responsibilities
Desired qualifications; and
Other job requirements
2.0 Recruitment
Vacancies at SI shall be advertised in the local media to allow free,
fair and description, qualifications required, salary and benefits, methods
of application and the deadline for submission of applications.
The excecutive Director shall shortlist aplicants for interview by
an ad hoc committee of the Board of Directors. The committee shall interview
and rank applications in order of merits. This will particularly apply
in filling senior positions (employees earning shillings ten thousands
and above) otherwise senior the Executive Director shall fill positions
The best candidate shall be given a letter of appointment and be given
a reasonable time to accept or decline on offer.
New employees shall serve for a probationary period of six (6) months
and shall be confirmed upon successful completion of probationary period.
Terms on employment shall be on one-year renewable contact. Employee
performance evaluation shall be done annually or before renewal of his/her contracts.
A personnel file for every employee shall be maintained by an officer
in charge of personnel and administration.
3.0 Promotion
3.1 An employee who has demonstrated ability in performing assigned duties may be promoted to a higher grade when a position with a higher grade falls vacant; or the responsibilities of position the incumbent is occupying have increased significantly to merit reclassification to a higher grade; or the incumbent meet academic criteria for the vacant position. However, an authorized official must confirm such promotions in writing.
4.0 Code of Conduct
4.1 All employees shall at all times conduct themselves in a manner that will not cause embarrassment to SI both internally and externally. No misuse of SI's imprest, property or facilities shall be tolerated.
There shall be a claim of authority in the organization. Insubordination
shall be treated as gross misconduct. Employees shall behave in cordial
and respectable manner towards fellow employees. Character values shall
be highly observed, discussed and taught in order to have common goals
within and without the organisation.
Employees shall neither solicit nor accept gifts, favour or anything
of monetary value from suppliers or potential suppliers. Disciplinary action
including summary dismissal shall be taken against violators of this regulation.
Employees shall refrain from engaging in actions, which may appear to
create potential or real conflict of interest within the organization.
Specifically, no employee shall participate in selection, award, administration
of contract where to his/ her knowledge his/her immediate family partner
or an organization which he/she or his/her family or partner has interest
or with whom he or she is negotiating or has any arrangement concerning
prospective employment.
Employees shall be expected to have high level of integrity, honesty,
confidentiality and commitment to duty.
Employees shall neither misrepresent nor use falsely the name of the
organization. No employee shall use the organizations name in any form
without express authority or purport to represent it without permission
from the executive Director.
5.0 Salary and Wages
5.1 All salaries and wages shall be paid in arrears monthly.
5.2 Salary payment shall be in cheque. Casual workers shall be paid from petty cash funds.
5.3 Acting allowances shall be paid to an employee who acts in a position other than his/her for more than fourteen working days; for a whole period, he/she has acted.
6.0 Working Days and Hours
Working days shall be from Mondays to Fridays excluding public holidays. The working hours shall be from 8.00am in the morning to 5.00 pm in the evening with one and a half hour lunchbreak (12.30 — 2.00pm)
7.0 Annual Leave
7.1 There shall be annual leave for every employee and the date shall mutually agree upon between each employee and the officer in charge of administration. The period for annual leave shall not be less than thirty working days.
8.0 Disciplinary Action
8.1 Interdictions
An employee found guilty of gross misconduct after two written warnings, shall be interdicted/suspended for a period of 14 days without pay pending the decision of an ad hoc disciplinary committee.
8.2 Dismissal
An employee may be dismissed from employment on any one or a combination of the following:
Unsatisfactory performance of his/her duties
Gross misconduct and
Theft or any other criminal activity
8.3 Redundancy
An employee may be declared redundant where:
He/she fails to perform assignments satisfactorily
The type of skills she/he possesses are no longer needed at SI
SI's activities are curtailed due to judging constraints from benefactors
9.0 Travel Policy
Employees on official duties outside their official duty station shall
be entitled to a travel imprest to cover their fair, per diem and other
ordinary & necessary travel related expenses.
Employees applying for travel imprest must at all times attach an itinerary
to the claims, and upon return, must complete a travel claim voucher within
seven days.
Employees on official travel shall be entitled to a per diem, according
to his/her position and commensurate with the nature of assignment, and
for a whole period, the employee is away.
Car allowance on the use of personal vehicles if advantageous to SI shall
be based on aproved prevailling mileage rates.
Employees travelling by public means shall be entitled to a full fare
provided official receipts support such claims.
9.1 Use Of SI's Vehicle(s)
Authorized personnel shall drive SI's vehicle(s) for official purposes only.
A trip request shall be prepared and authorized for a trip showing the following:
Vehicles registration number
Driver’s name
Odometer reading at the beginning of the trip
Destination
Purpose of the trip
Name(s) of passenger(s)
Odometer reading at the end of the trip; and department and arrival time
As per vehicles by record.
Employee shall not undertake unauthorised vehicle repairs. Such repairs
shall be authorized by the executive Director
Fuels shall be obtained from designated fuel stations
10.0 Non — Expendable Property (NXP) Procedures
10.1 When a NXP item is procured, it must be inspected by the individuals who
Raised a requisition for that item so as to ensure the item is in compliance with the specifications.
If the item is accepted, it shall be given a identifications No.the identification number shall be written in such a way that the item can be ready identified and the number is not easily erasable.
An NXP register shall be maintained for all designated NXP items. For each item, the NXP register shall contain at least the following information:
Identification number
Description
Model number
Manufacture’s serial number
Source/ origin
Who has title
Date of acquisition
Physical location
Original cost
Condition of use.
A physical inventory of all NXP shall be taken at least every year. The results shall be reconciled to the accounting records. Any discrepancy should be investigated thoroughly and reported to the Executive Director.
NXP items shall be used solely for the purpose for which they were procured and in furtherance of SI's objectives. Employees who have custody of such items shall keep such property in good working condition at all times.
When a decision to dispose of NXP is made, SI shall set sale reference prices based on the following:
Age and condition of the item
Fair market or revaluation price
Availability or market for the item
Once an item is disposed off, appropriate book keeping entry should be made in the NXP and the control of the account ledgers. However, the following information should be reflected in the NXP register:
Date of disposal
Disposal proceeds
Gain/loss on disposal
Name and address of buyers
Reasons for disposal
11.0 Procurement Procedures
Procurement for major items shall be done besed on approved budget levels
by the SI Board of directors. All procurement actions shall be done in
amanner which promotes open, free and fair competion in the market place,
and which serves the best interest of the organization. Employees involved
in the procurement transaction shall at all times exhibit high moral and
ethnical standards with their counterparts.
The board of Directors shall authorize responsible employees to make
financial commitment on its behalf
Only authorized employees shall raise a purchase requisitions to the
accountant for funding.
The Accountant shall, based upon budgetary allocation, clear off for
refund availability and forward the requisition to the Executive Director
for approval.
After approval from ED, the accountant, depending on the value of the
requisition, shall raise a pre-numbered purchase order, and send it to
the Executive Director for approval
For purchases, which require significant outlay of funds, quotations
shall be obtained from at least three (3) suppliers. After the ED has analyzed
quotations, the purchase order shall be sent to the lowest quotation.
Procurement award, which appear to create a conflict of interest, shall
not be made. Under no circumstance shall an award be made to a person or
an organization where the persons making an award or members of their family
have financial interest.
When goods are received, they shall be inspected to ensure they are in
full compliance with the specification to the purchase order. If acceptable,
the accountant shall accept the invoice and initiate payment.
The accountant shall ensure the invoice is agreed with the purchase order
and the delivery report, if any.
12.0 Accounting System
12.1.1 The following procedures shall be followed when cash is received:
Cash shall be paid to the accountant who shall use an official receipt.
All receipts shall be pre-numbered and the numbers shall be accounted for. The accountant shall initial the receipt. The receipt shall show the source
of such cash.
Receipt book shall be in duplicate. Original receipt should go to the person/organization making the payment. Duplicate receipt shall be kept for accounting purpose.
Cash receipt shall be totaled and entired in the main cashbook with full
receipt details such as date, number, source and amount.
All received shall be banked within a designated date within a week. Copies
of the pay-in slip shall be kept in date order.
When banked, an entry shall be made in the back column of the cashbook.
These entries shall be made to easily identified cash receipt with corresponding
banking. The balance of cash columns shall be zeroed at the end of each month.
12.1.2 When payments are made directly to the bank, the accountant shall be issue a receipt as above as he/she receives the bank advice.
12.1.3 The following procedures shall be followed when payment is made by cheque:
Official receipts shall be used showing the cheque number.
The receipt number shall be entired in the reverse side of the cheque
for the follow-up in the effect the cheque is dishonoured.
Like cash, cheque shall be banked within one day of receipt or on the
next designated banking day.
At close of each business day cheques shall be totalled and entered into
the bank colummn of main cashbook.
When a cheque is dishonoured, the accountant shall communicate with the
drawer immediately. The dishonored cheque shall not be released until the
drawer make acceptable alternative payment. The entry of dishonored cheque
shall be reversed in the cashbook.
12.2 Payment Procedures
All payments in excess of kshs 1000 shall be by cheque.
Invoice from suppliers shall be received and checked by the accountant.
The accountant shall ensure the invoices are used in agreement with purchase
order and delivery notes. He shall ascertain availability of funds before
writing a cheque.
Depending on the availability of funds, accountant shall prepare a pre-numbered
payment voucher with supporting document to the Executive Director for
approved. The pre-numbered voucher shall contain necessarily accounting
data: purchase order number, reason for payment and source of funds.
The
approval payment voucher shall be returned to the accountant to write a cheque.
The accountant upon issuarance of a cheque shall stamp
all documents "PAID"
The cheque with all supporting document shall be sent to the Executive
Director or to signatories for signature.
The signed cheque shall be sent/dropped to or corrected by the payee.
Details of paid vouchers shall be entered in the cashbook.
All paid vouchers together with original third party supporting documents
shall be filled in chronological order.
The cashbook shall be balanced daily.
12.3.0 Petty Cash Procedure
Subject to regular reviews on minimum cash, requirements insured petty cash fund of kshs 5,000 shall be maintained.
Procedure For Petty Cash Payments:
Cash payments shall be limited to kshs. 1,000. Any amount in excess of
Ksh.1, 000. Shall be paid by cheque.
The accountant shall raise a petty cash voucher with all supporting documents
and with details of the expenses and payee.
The voucher shall be signed by the accountant and passed to the Executive
Director for approval.
When the voucher is approved and the payments made,it shall be stamped "PAID"
Like other payments, petty cash vouchers shall be pre-numbered and
details entered in the petty cash book and shall be analyzed under appropriate
expense column.
Procedures for replenishing petty cash
When the petty cash balance falls too low, say kshs 1,000 the accountant
shall complete a payment requisition form for an amount equal to the vouchers
paid. Paid vouchers shall be attached to the payment requisition.
The Executive Director or his/her designee shall approve the payment requisition.
At
the end of each month, the petty cash book is totalled to determine the balance.
The balance shall be reconciled with the physical (surprise) cash
counts.
12.3.1 Surprise cash counts shall be done at least once a month. Cash counts shall be done and documented by designated employee(s). The result of cash counts shall be reported to the Executive Director immediately.
12.4.0 Cash Book/bank Reconciliations
12.4.1 At the end of each month the cashbook shall be totalled and the balances determined to be used as a basis for bank reconciliations. The reconciliation shall show:
Bank balance per cash book
Outstanding lodgments
Unrepresented cheques
Bank charges other debits passed by the bank
Balance per bank statement
The reconciliation shall be prepared by the accountant and shall be reviewed and signed by the Executive Director.
All bank reconciliations shall be filled in chronological order.
12.5.0 General Ledger Procedures
12.5.1 Posting to the general ledger shall be made after closing the cash book(s) at the end of the month by way of relevant posting journal(s).
12.5.2 The posting journals shall list all affected accounts and amount. The journals must balance before any posting is done.
12.5.3 The trial balance shall be extracted from the general ledger at least once every three months at the end of the financial year.
12.5.4 The trial balance shall be used in preparing the draft financial accounts and supporting schedules.
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