Government of the Republic of South

Sudan




Public Financial Management
Manual for Local Governments

Quick Reference Guides

May 2013





Contents

1. Responsibilities for Financial Management in Local Governments
2. Responsibilities of the Chief Administrator
3. Basic Financial Forms Receipt and Payment of Cash
4. Preparing a Budget
5. Sources of Revenue
6. Receipt of Revenue
7. Budgetary Control
8. Making and Recording Payments
9. Preparing the Payroll
10. Imprest and Advances
11. Selecting a Contractor
12. Management of Fixed Assets and Stores
13. Internal Audit
14. Cash and Bank Reconciliation
15. Preparation of Financial Reports
16. Preparing a Basic/ Primary School Budget
17. Preparing a Budget for a Primary Health Centre
18. Primary School Financial Management
19. 1. Responsibilities for Financial
Management in Local Governments

Officer Roles and responsibilities of key staff in PFM
Chief
Administrator
a. Chief finance officer of the local government [LGA 2009 Sections 61.1(c), 63.1(c),
64.1(c)].
b. Supervise administration and management of the local government finances,
procurement and maintenance of movable and immovable assets [LGA 2009 Sections
61.2(e), 63.2(e), 64.2(e)]
c. Safe custody of local government records and funds [LGA 2009 Sections 61.2(k),
63.2(k), 64.2 (k)]
d. Implementation and execution of the local government plan [LGA 2009 Sections
72(1), 84(1)
e. Periodically render progress reports to the executive council for purposes of
accountability [LGA 2009 Sections 72(2), 84(2),
f. Principal signatory on all cheques issued by the local government
Head of
Accounts
a. Organize the finance/accounting activities to ensure internal check
b. Vet all payment requisitions to ensure regularity and budget coverage.
c. Co-signatory on all cheques issued by the local government
d. Regular checks that all financial records are correctly written and filed.
e. Reviewing and verifying the monthly bank reconciliation statement(s)
f. Reviewing monthly and annual financial statements before submission to Chief
Administrator, Executive Committee and Legislative Council
g. Induct any new accounts staff hired or posted to station in all financial procedures.
h. Mentor and train existing employees and where problems persist, request Chief
Administrator to mediate.
i. Assisting external auditors during the annual audit
Planning
Officer
(Section 71
LGA 2009)
a. Identify, analyse and prioritise the needs of the Council
b. Prepare the Council Plan and Annual Budget for approval by the Executive
Committee and then the Legislative Council
c. Monitor and supervise the implementation of the Council Plan and Budget.
d. Coordinate and monitor the activities of all development partners in the
implementation of the Council projects.
Controller/
Inspector of
Accounts
a. Examining and pre-auditing of cash and cheque payment orders for regularity,
ensuring budgetary control and accurate recording of the Budgetary Control Book
b. Checking all revenue collection receipts (Form 15) are accounted for
c. Keeping track of commitments through the Budgetary Control Book
d. Collecting cheque books from the bank
e. Safe custody of the chequebook
f. Preparing the monthly bank reconciliation statement
g. Checking the Treasury Chest Book is maintained properly
h. Preparation of monthly, quarterly and annual financial statements
Accountant/
Book Keeper
a. Preparation of cash and cheque payment orders
b. Preparation of the payroll
c. Writing out cheques
d. Posting the Accountants Register of Receipts and Register of Payments
e. Keeping the local rates (debtors/revenue) register up to date
f. Keeping the creditors register up to date
Cashier
a. Receiving cash/cheques from rate collectors and other payers
b. Paying out cash against authorised payment orders
c. Issuing cheques to payees and maintaining the cheques outward register
d. Maintaining the cheques inwards register
e. Posting the Treasury Chest Book
f. Preparing a daily cash collection and payment summary report
g. Banking cash/cheques as required

2. Responsibilities of the Chief Administrator
The Chief Administrator (Executive Director for a county) is the Accounting Officer for a local
government. They are responsible for financial administration and the proper operation of all
internal financial controls. They can be held to account by the Ministry of Finance of the State
and also by the Public Accounts Committee of Parliament. They may be disciplined and may
have to repay any funds found to be missing or misused.
Public Financial Management Manual (page 6/7 and 74).
Legal Responsibilities
The legal responsibilities of the Chief Administrator include:
a. Being Chief Finance Officer of the local government [Local Government Act, 2009
Sections 61.1(c), 63.1(c), 64.1(c)].
b. Supervising the administration and management of local government finances,
procurement and maintenance of movable and immovable assets [Local
Government Act, 2009 Sections 61.2(e), 63.2(e), 64.2(e)]
c. Safe custody of local government records and funds [Local Government Act, 2009,
Sections 61.2(k), 63.2(k), 64.2 (k)]
d. Implementation and execution of the local government plan [Local Government Act,
2009, Sections 72(1), 84(1)
e. Periodically render progress reports to the Executive Council for purposes of
accountability [Local Government Act, 2009, Sections 72(2), 84(2),
f. Principal signatory on all cheques issued by the local government.
g. Being personally accountable for the regularity and propriety of the expenditure of
money [Public Financial Management and Accountability Act, 2011, Sections 65
and 51]
h. Delegating authority legally assigned to him/her in writing to another officer. Any
delegation shall not affect their personal accountability (Sec 51 of the Public
Financial Management and Accountability Act, 2011 [Public Financial Management
and Accountability Act, 2011, Section 51].
i. Ensuring that appropriate action is taken over any irregularities or any unauthorised
expenditure and this is reported to the Ministry of Finance and the Auditor General
[Public Financial Management and Accountability Act, 2011, Sections 65 and 66].

The Chief Administrator should be supported by the following units:
! Accounts/Finance Unit
! Procurement/Stores Unit
! Planning Unit
! Internal Audit Unit
(Chapter III of the Public Financial Management and Accountability Act, 2011).
Monitoring by the Chief Administrator
Key Areas for monitoring by the Chief Administrator include:
" Compliance with the budget checking that all orders, contracts and payments
are in line with the appropriate budget line as recorded in the Budget Control Book.
Cash flow is planned and monitored to ensure that sufficient cash is always available
to make payments as required.
" Financial records management all necessary official forms are being used
and are being promptly completed and checked. All financial instructions and
notifications are in writing. All financial records are kept safely and securely. Payment
orders kept for at least 5 years after audit. Audited accounting records and financial
statements kept for a minimum of 15 years.
" Cash security minimum levels of cash are maintained securely by the Cashier
and any surplus is promptly banked. Appropriate security safeguards are in place
during transportation and paying out of cash and for safe keeping of cheques and
receipt books. Cash counts are undertaken by the Controller/Inspector of Accounts or
internal audit at least once a week to confirm cash held by Cashier.
" Security & maintenance of all assets and stores is adequately monitored and
addressed. All assets are adequately maintained and recorded. Assets and stores
are independently checked to ensure they are held securely and adequately
maintained at least once a year.
" Revenue and other receipts revenue receipts from all sources are maximised.
Official Receipts (FF#15) are issued for all receipts. All such forms are adequately
accounted for. There is appropriate security for all rate collectors.
" Revenue monitoring all sources of revenue should be monitored and trends
investigated. All grants are received promptly and properly acknowledged.
" Payments all payments are properly authorised, are in line with the approved
budget and are for goods and services required by the local government. The Chief
Administrator should review the Budget Control Book before they authorise any
payments. This is particularly important for large development contracts. Also check
that payments are made for goods or services that have been received in line with the
contracts.
" Procurement & Contracts all procurement is undertaken in line with the
regulations to ensure that quality goods and services are received at appropriate
prices. Awarding of contracts is reported publically and complaints are dealt with
independently. The Chief Administrator should review the Budget Control Book before
they authorise orders or contracts. This is particularly important for large development
contracts.
" Bank reconciliations are properly completed for each bank account at least
once a month. The Head of Accounts should provided explanations for any anomalies.
" Staff Appointments and payroll monitoring of all staff assigned to the local
government and ensuring that changes to payroll from month to month are accurate.
" All official correspondence on financial matters is personally reviewed and
action is promptly taken as necessary.
" Reimbursable advances are staff adequately accounting for all advances
provided (travel imprests).
" Staff training all financial staff receive appropriate training and are aware of
any legal or regulatory changes. Financial staff have access to copies of the Public
Financial Management Manual for Local Governments, the Local Government Act,
2009 and the Public Financial Management and Accountability Act, 2011
" Financial irregularities all suspected financial irregularities are investigated,
reported to the appropriate authorities and necessary disciplinary action is promptly
undertaken.
" Internal & external audit ensure that audit staff have access to all records,
forms, staff, assets etc that they may require. Check that all audit queries and reports
are promptly responded to. Necessary action is taken in response to all audit reports.
3. Basic Financial Forms Receipt and
Payment of Cash

a) Receipt of Revenue:


















Receipt of
Income (FF 1S)
Collectois Account
(FF 67)
Revenue Collectoi
Collectois
Account (FF
67)

Receivable
0iuei (FF S9)
Receivable
0iuei (FF S9)

Tieasuiy Chest
Book (FF 19)
Cashiei
Cashiei
Receivable
0iuei (FF S9)

Accountants
Registei of Receipts
(FF 6S)
Book Keepei
0iiginal to the
Revenue Collectoi
Buplicate stampeu
anu given back to
Revenue Collectoi

b) Cash Payments:



Cash Payment
0iuei (FF 4u)
Tieasuiy Chest
Book (FF 19)
Cashiei
Cash Payment
0iuei (FF 4u)

Cash Payment
0iuei (FF 4u)

Buuget Contiol
Book
Book Keepei
Accountant
Accountant
Local Puichase
0iuei

Bepaitment
Accountant
(Sent to suppliei)
Buuget Contiol
Book
Accountants
Registei of
Payments (FF 76)
4. Preparing a Budget
!"#$%&'(#)%"

The buuget is the annual financial plan foi a local goveinment. It is agieeu by the Legislative
Council. The buuget authoiises local goveinment officials to iaise the ievenue anu spenu the
money in line with the buuget. Payments not in line with the buuget aie iiiegulai.

The main iesponsibilities foi cooiuinating the buuget piocess lies with the Planning 0fficei anu
the Beau of Accounts, unuei the supeivision of the Chief Auministiatoi. Foi moie infoimation
see !"#$%&' )* +,-.&%/0. of the Public Financial Nanagement Nanual foi Local uoveinments
(PFNNLu).

+$)"(),-./ %0 1'&2.#)"2

County buugets shoulu auheie to thiee key piinciples to ensuie that they aie useful uocuments
foi guiuing goveinment activities anu contiolling expenuituie;
a. Plans anu Buugets must be $.3-)/#)(.
The iesouices available to a county aie limiteu, anu the buuget must be baseu on a
iealistic assessment of the iesouices available fiom (a) the tiansfeis fiom the State
uoveinment anu (b) the ievenues the county can collect itself.

b. Plans anu Buugets must 4. ,$)%$)#)/.&.
Bepaitments must caiefully piioiitise theii planneu activities. Buugets shoulu not be a
ieflection of eveiything a Bepaitment woulu like to uo, but eveiything that it is able to uo,
taking into account its limiteu time, human anu financial iesouices.

c. Plans anu Buugets shoulu 5'3"#)06 %'#,'#/ wheievei possible.
Quantification of outputs is essential foi peifoimance monitoiing. Foi example, if the
Euucation Bepaitment plans to unueitake school inspections, it shoulu plan the numbei it
plans to uo each quaitei. The numbei actually caiiieu out can then be compaieu to the
planneu figuie as a measuie of peifoimance.

7%(3- 8%9.$":."# 1'&2.# ;3-."&3$

The buuget calenuai is a scheuule of events anu taiget uates which the local goveinment neeus to
complete to uevelop its buuget by Su
th
}une each yeai.

The main steps in the planning & buuget piocess aie:

i. +3$#)(),3#%$6 ,-3"")"2: consultations with the communities to ieview peifoimance ovei the
last yeai anu to assess community piioiities foi the coming yeai baseu on available iesouices.
County officials shoulu iefei to the 12#'%/3/$#%4'5 26#00/0. #0- +,-.&%/0. 7,/-& 84' 943#6
74:&'0;&0%< /0 =4,%" =,-#0> issueu by the Local uoveinment Boaiu foi fuithei guiuance on
caiiying out paiticipatoiy planning. This piocess shoulu culminate in the annual County
Buuget Confeience wheie the piioiities aie ievieweu. <.(.:4.$ = >3$(?@

ii. A/#):3#)"2 #?. $./%'$(. ."9.-%,.B the Planning & Finance 0fficeis estimate the total funuing
the county will have available in the next financial yeai fiom local ievenues, giants fiom
National & State goveinments, anu giants fiom uonois. County buugets must be balanceu.
The buuget must not have a ueficit. This means that the total spenuing that is planneu must
equal the total iesouices estimateu. The ievenues anu expenuituies anu ielateu buuget
infoimation shoulu be piesenteu in scheuules as piesciibeu in the PFNNLu Appenuix 2:
Buuget Foims (pages 88-1u1). C,$)-@

iii. A/#):3#)%" D 3,,$%93- %0 4'&2.# (.)-)"2/: the Planning & Finance 0fficeis allocate* the
available funuing between the uiffeient uepaitments of the Local uoveinment, in line with the
piioiities iuentifieu uuiing paiticipatoiy planning anu buuget confeience, anu piesent these
allocations to the Executive Council foi appioval, togethei with the iesouice envelope. 16 ."&
0)$/# E..F >36.

GH%#. %" #?. 3--%(3#)%" 0%$:'-3B
When the iesouice envelope has been uiawn up, total iesouices aie allocateu between the
County's Bepaitments. This is uone using the following methou:

a. Allocate (%"&)#)%"3- 2$3"#/ fiom the National & State goveinment to the appiopiiate
uepaitment. E.g. the Euucation conuitional tiansfeis must be allocateu to the Euucation
Bepaitment.
b. Allocate (3,)#3- 2$3"#/ to Bepaitments in line with the piioiitiseu piojects iuentifieu uuiing
the paiticipatoiy planning piocess anu the buuget confeience. E.g. wheie communities
iuentifieu iehabilitation of a school to be financeu by the Payam Bevelopment uiant, the
amount foi this pioject is allocateu to the Euucation Bepaitment.
c. Allocate funuing fiom #?. 4-%(F 2$3"# %$ -%(3- $.9."'./ #% (%9.$ /3-3$)./ not coveieu by
conuitional giants, incluuing salaiies of the Auministiation Bepaitment, the sitting
allowances of the County Legislative Council, anu auministiative allowances foi the
Legislative Council Chaiipeison anu Beputy Chaiipeison anu the Chaiipeisons of Legislative
Council Stanuing anu Au-hoc Committees.
u. Allocate 3"6 $.:3)")"2 0'"&)"2 0$%: #?. 4-%(F 2$3"# %$ -%(3- $.9."'. to Bepaitments in
line with the piioiities of the County.

iv. +$.,3$3#)%" %0 &.,3$#:."#3- 4'&2.#/: Bepaitments uiaw up theii buugets in line with the
buuget ceilings appioveu by the Executive Council, anu submit these to the Planning 0nit.
Each Bepaitment shall piesent its buuget in the same foimat showing; (a) Betaileu estimates
by item foi the uepaitment; (b) Betails of capital piojects (c) Naiiative of cuiient yeai
peifoimance anu (u) Naiiative of plans foi the coming yeai. 16 :)&I>36.

v. ;%:,)-3#)%" %0 #?. 4'&2.#: the Planning & Finance 0fficeis compile the uepaitmental
buugets togethei into a single uiaft County Buuget, ensuiing that submissions aie in line with
buuget ceilings. 16 ."& >36.

vi. C,,$%93- 46 #?. -%(3- 2%9.$":."# AJ.('#)9. ;%'"()-: the uiaft buuget is piesenteu to the
Executive Council foi appioval. It is then amenueu anu the final uiaft buuget piouuceu. 16
."& 0)$/# E..F K'"..

vii. C,,$%93- 46 #?. -%(3- 2%9.$":."# 7.2)/-3#)9. ;%'"()-: the Commissionei piesents the uiaft
buuget to the Legislative Council foi appioval, 46 LM
#?
K'".. 0nce the buuget is passeu, the
Commissionei signs the Appioveu Buuget into law. The County then has authoiity to spenu
the funus iuentifieu in the buuget.

+'4-)(3#)%" %0 #?. -%(3- 2%9.$":."# 4'&2.# 30#.$ )#/ 3,,$%93-

Aftei it has been piesenteu to the Legislative Council, the County buuget becomes a public
uocument anu extiacts of the key buugets shoulu be posteu on public notice boaius oi othei
public places anuoi the meuia.
5. Sources of Revenue
The Inteiim Constitution of South Suuan, aiticle 17S (6) states that:
1943#6 74:&'0;&0%< <"#66 "#:& $4?&'< %4 6&:5@ 3"#'.&@ 3466&3% #0- #$$'4$'/#%& 8&&< #0- %#A&< /0
#334'-#03& ?/%" %"& 6#?>
Aiticle 17S(7) fuithei spells outs that
1B"& .4:&'0;&0% 48 =4,%"&'0 =,-#0 ;#5 $#5 .'#0%< /0 #/- %4 <%#%&< /0 <,$$4'% 48 %"&/' C,-.&%#'5
-&8/3/%< #0- %"#% 48 943#6 74:&'0;&0% !4,03/6<D>

Section 7S of the Local uoveinment Act 2uu9 pioviues foi the souices of Local uoveinment
income. Section 74-8u categoiies the souice of ievenue foi Local uoveinment councils which aie:



Local Taxes
# Council piopeity tax
# Council Social seivice tax (poll tax)
# uibana tax
# Council lanu tax
# Animal tax
# Council Sales tax
# Capital gains tax
# Piouuce tax (ushui)
# othei taxes as may be authoiizeu

Local Rates
# 0sei seivice chaiges
# Licences fees
# Auministiative fees
# Royalties anu peimits
# Customaiy couit fees anu fines
# Contiact anu auction fees
# othei authoiiseu fees & chaiges
Locally
ueneiateu
Income
Retuins fiom investments anu commeicial business ventuies
unueitaken by a local authoiity as a coipoiate bouy









Local
Revenues

Community
Contiibutions
Contiibutions fiom community membeis in the foim of laboui,
monetaiy contiibution oi in-kinu.

uoveinment
uiants
Block giants (anu any othei types of giants) tiansfeiieu fiom the
uoSS Ninistiy of Finance, thiough the State Ninistiy of Finance, to
the bank account of each Local uoveinments Council. This tiansfei
shoulu be baseu on a specific anu simple allocation foimula anu
uisbuisement ciiteiia.
Exteinal financial assistance fiom Bonoi agencies to Councils can
be effecteu in two ways:
# Thiough bilateial agieements,
# Thiough a Local uoveinment Funu, which is a funu establisheu
as a "basket" foi uonoi giants uiiectly committeu to local
goveinment uevelopment initiatives.





Grants

Bonois uiants
Any uiiect assistance fiom Nu0s to Counties shoulu be incluueu in
the County Annual Bevelopment Plan anu with the consent of the
Ninistiy of Local uoveinment (except in cases of emeigencies anu
natuial uisasteis)
Loans As a coipoiate bouy a local authoiity has the iight to boiiow fiom
the national banking system as stipulateu by the law anu thiough
the establishment of micio-finance institutions.

Each yeai local goveinments neeu to assess the amount they aie likely to iaise fiom each of the
above souices as pait of the buuget piepaiation piocess.
8%9.$":."# 8$3"#/

The national goveinment pioviues a seiies of giants to local goveinments, these may incluue:

! Conuitional Salaiies uiant - to pay the salaiies of local goveinment employees
! Bevelopment uiant - paiu foi capital piojects. Local goveinments have to submit theii
annual appioveu buuget by the enu of Apiil. Equal giants weie paiu foi each county in a
state anu foi each state in total.
! Block oi 0peiational uiant - paiu monthly

Public Financial Nanagement anu Accountability Act, 2u11, Section S6(2) states:

B"& #6643#%/40 %4 &#3" =%#%& #0- 943#6 74:&'0;&0% <"#66 C& 84';,6#E-'/:&0@ %#F/0. /0%4
#334,0% %"& $4$,6#%/40 #0- 8/0#03/#6 '&<4,'3&< 48 %"& =%#%&@ #0- #05 4%"&' /0-/3#%4'<
-&%&';/0&- C5 %"& =4,%" =,-#0 G/<3#6 #0- G/0#03/#6 H6643#%/40 #0- I40/%4'/0. !4;;/<</40
/0 3466#C4'#%/40 ?/%" %"& I/0/<%'5D

See 2,C6/3 G/0#03/#6 I#0#.&;&0% I#0,#6 84' 943#6 74:&'0;&0%< (section S.4).

"#$%&'()* %+ ,&-).+#&.
To account foi ieceipts by uiiect tiansfeis (such as tiansfeis fiom the State, the Cential
uoveinment anu uonois) to the bank account of the local goveinment the following pioceuuies
shoulu be followeu:

/,#0 12 The Chief Auministiatoi shoulu confiim the uiiect tiansfei amount fiom the Bank
Statement anu issue an acknowleugement lettei to the uonoi.

/,#0 32 0n the basis of this lettei the cashiei will completeu FF#S9 -J&3&/:#C6& K'-&' - in the
names of the souice of the uiiect tiansfei, the oiiginal of this foim is foiwaiueu to the
souice of the uiiect tiansfei togethei with the acknowleugement lettei anu the
uuplicate iemains in the book so that it can be posteu to FF#19 - B'&#<,'5 !"&<% +44F as
with othei ieceipts.

The BookkeepeiAccountant shoulu iecoiu the tiansfei on FF#1S - H334,0%#0%L<
J&./<%&' 48 J&3&/$%<

LSSAI will use the goveinment systems foi conuitional tiansfeis to initially channel aiu funus to
countiespayams to suppoit ueliveiy of piimaiy euucation, basic healthcaie anu local
infiastiuctuie. The systems neeu to be stiong enough to account foi these funus in auuition to
the auuitional uoveinment funus when austeiity enus.

6. Receipt of Revenue
Public Financial Management Manual for Local Governments (PFMMLG, pages 25 30).
Rate Collector
All payments to a local government should be on the basis of a suitable bill or notice; or based
on an advertised scale of charges or rates.
All rate collectors should be officially authorised and carry suitable identification. Rate
collectors should not help to produce rent rolls, tax assessments etc. They should also not
complete FF#39 Receivable Orders nor post receipts to FF#19 - Treasury Chest Book nor to
the FF#65 - Accountants Register of Receipts.
Anyone who makes a payment to a local government should be provided with an official
receipt for the amount paid. This should be the official FF#15 - Receipt of Income (Appendix
3.4, page 105, PFMMLG).
The rate collector should check the money/cheques received and complete the FF#15 -
Receipt of Income and give the original to the person providing the payment. The duplicate
should be kept in the book.
All cheques received are to be written in the name of the local government and crossed. The
rate collector should check that this is done.
The FF#15 - Receipt of Income book should be treated like cash and kept secure. The FF#15
- Receipt of Income books are issued by the storekeeper with signed authority from the Chief
Administrator.
Each day the rate collector should complete FF#67 - Collectors Account (Appendix 3.5, page
106, PFMMLG) and pass all money & cheques collected to the cashier at the local
government or pay the money in to a bank.
Paying to cashier:
The original of FF#67 Collectors Account should be given to the cashier with the cash
collected. In return, the rate collector should receive the original of FF#39 Receivable Order
(Appendix 3.6, page 107, PFMMLG).
Paying to the bank:
Where a rate collector directly banks revenue in the bank account of the local government
he/she should fill in FF#50 - Deposit Slip (Appendix 3.7, page 108, PFMMLG) which should
then be stamped by the bank and a duplicate copy retained in the book (with the bank teller or
receipt from the bank). This copy together with original of FF67 Collectors Account should
be given to the cashier the next time the rate collector goes to the local government office.
Cashier
When the cashier themselves receives cash/cheques direct from the public he/she should
issue a FF#15 - Receipt of Income as does a rate collector.

When the cashier receives receipts from a rate collector, a Controller/Inspector of Accounts
should check the total cash and cheques or deposit slips is as indicated on the FF#67 -
Collectors Account in the presence of the cashier and the rate collector. The duplicate and
original of form FF#67 should be stamped by the cashier and the duplicate given back to the
rate collector.
The cashier should then complete FF#39 Receivable Order and the stamped original given
to the rate collector as a receipt for the money received. The duplicate of FF#39 remains in
the book while the relevant FF#67 is filed by date with the Controller/Inspector of Accounts.
The cashier should ensure that deposits are made at the bank every day that significant cash
or cheques are received. The cashier prepares a FF#50 the deposit slip to deposit cheques
or cash. Form 50 should be stamped by the bank.
The cashier should also record all cheques received on FF#22 the Register of Cheques
Received (Appendix 3.8, page 109 of manual).
The cashier completes FF#19 Treasury Chest Book (Appendix 3.10, page 111, PFMMLG)
with information from duplicate copies of FF#39s and, if any, FF#15s issued by the cashier.
Each day the cashier should check that the cash held is the same as the balance recorded in
FF#19 Treasury Chest Book.
Bookkeeper or Accountant
The bookkeeper/accountant completes FF#65 Accountants Register of Receipts (Appendix
3.11, page 113 of manual) with information from duplicate copies of FF#39s and duplicates of
any FF#15s issued by the cashier.
Check on Receipts
Each time a rate collector returns a completed receipt book to receive a new one the old book
should be checked and the revenue has been accurately accounted for.
The receipt book should be checked by internal audit if present (or by the Controller of
Accounts) to see that all the receipts have been used and all the duplicates are in place. For
each of the duplicates, the recorded amount received should be checked to:
the duplicate of FF#39 Receivable Order and the relevant FF#67 Collectors
Account filed with the Controller/Inspector of Accounts
relevant entries in FF#19 Treasury Chest Book.

If any receipts cannot be accounted for or if the amounts are not consistent this should be
reported to the Head of Accounts and the Chief Administrator.
If present, the internal auditor can check that all receipt forms (FF#15) are accounted for. In
their absence, an Inspector/Controller of Accounts should undertake this task.
7. Budgetary Control

!"#$%&'(#)%"

The buuget is the annual financial plan foi the local goveinment which is agieeu by the
Legislative Council. Local goveinment officials have a uuty to ensuie that, as fai as
possible, the buuget is followeu. The main way this is achieveu is by the caieful use of the
+,-.&%#'5 !40%'46 +44F anu ensuiing that no buugetaiy lines aie ovei spent.

;%::)#:."#/

A commitment occuis when a local goveinment enteis into a legal obligation to pay foi
goous oi seivices, eithei immeuiately oi at some time in the futuie. Foi example, a
commitment aiises when an official Local Puichase 0iuei (SFSS) is issueu oi a contiact is
signeu (Public Financial Nanagement Nanual foi Local uoveinments (PFNNLu), page SS,
section S.S). The local goveinment is committeu to paying foi the goous oi seivices aftei
they have been ieceiveu.
Commitments shoulu only be alloweu if theie aie sufficient funus left in the appiopiiate
buuget to pay foi the goous oi seivices being oiueieu. The Chief Auministiatoi is
iesponsible foi ensuiing auequate commitment contiol anu so avoiuing ovei-spenuing
against any buuget line.

Contiacts shoulu only be signeu if the pioject was incluueu in the annual buuget anu
annual piocuiement plan. When the piocuiement iequisition foim is completeu the
+,-.&% !40%'46 +44F shoulu be checkeu to ensuie that sufficient funus iemain in the
ielevant buuget to covei the expecteu cost.

Similaily, when a contiact is signeu oi an official puichase oiuei is iaiseu the +,-.&%
!40%'46 +44F (PFNNLu, Appenuix S.S, page 16S) shoulu be checkeu. The contiact oi
oiuei shoulu only be signeuissueu if sufficient funus iemain in the ielevant buuget line.

0nce the contiact has been signeu, the uetails shoulu be iecoiueu in the !4;;/%;&0%<
J&./<%&' (PFNNLu, Appenuix S.2, page 164) anu the +,-.&% !40%'46 +44F shoulu be
completeu at this moment (entei the amount of the puichase oiueicontiact as a
commitment in the +,-.&% !40%'46 +44F) The !4;;/%;&0%< J&./<%&' iecoius the total
value of the contiact, invoices ieceiveu, any payments maue anu so any outstanuing
commitments on each contiact.

45'*#, 6%),&%7 4%%8

The +,-.&% !40%'46 +44F is to ensuie that commitments aie kept within the appioveu
buuget anu so ensuie buugetaiy contiol. The Contiollei of Accounts shoulu keep the
+,-.&% !40%'46 +44F up-to-uate. A uepaitmental +,-.&% !40%'46 +44F may also be
maintaineu by each heau of uepaitment, especially foi those uepaitments which have
significant uevelopment buugets.

A sepaiate page in the +,-.&% !40%'46 +44F shoulu be useu foi each line in the buuget.
This shoulu iecoiu the oiiginal buuget (with any changes), commitments, payments anu
so the balance of uncommitteu funus foi the buuget line which may be useu foi futuie
commitments (oiueis oi contiacts).

The Chief Auministiatoi shoulu ask to see the +,-.&% !40%'46 +44F befoie they authoiise
iequisitions, oiueis oi payments. This is paiticulaily impoitant foi laige uevelopment
contiacts.

A summaiy of pioceuuies foi maintaining the +,-.&% !40%'46 +44F (PFNNLu, paiagiaph
S.4.6, page SS) is:

a) Each item (thiee uigit coue) in the appioveu buuget shoulu have its own page
within the +,-.&% !40%'46 +44F. The appioveu buuget amount foi the item shoulu
be enteieu on the top of that page at the beginning of the yeai by the Contiollei of
Accounts.
b) When a Puichase 0iuei oi Seivice 0iuei is issueu to a suppliei oi seivice
pioviuei oi when a ContiactAgieement is signeu with a contiactoi, the
Contiollei of Accounts shoulu make entiies into commitments columns of the
+,-.&% !40%'46 +44F by posting:
the uate,
uetails of suppliei,
numbei of PuichaseSeivice 0iueiContiactAgieement,
amount,
cumulative unpaiu commitments,
total cumulative paiu anu unpaiu commitments anu cumulative uiiect
payments anu,
the balance available.
c) 0n payment of a supplieiseivice pioviueicontiactoi's invoice, the Contiollei
of Accounts shoulu entei the +,-.&% !40%'46 +44F by posting columns foi:
the uate,
invoice numbei,
payment aujustment if any (uiffeience between invoice value anu actual
amount paiu),
payment of commitments,
cumulative payment of commitments,
cumulative unpaiu commitments,
total cumulative paiu & unpaiu commitments anu cumulative uiiect
payments, anu
the balance available
u) Post uiiect expenses into the column foi uiiect expenses whenevei such
payments aie maue
e) Any ievisions in the appioveu buuget amounts foi line items shall be
immeuiately biought into the +,-.&% !40%'46 +44F by utilising the space foi
ievisions anu ieallocations anu aujusting the balance available column
immeuiately.

8. Making and Recording Payments
Introduction
All payments should be checked to ensure that the procurement was undertaken properly,
that there is sufficient balance in the relevant budget and that the local government has
sufficient funds to make the payment. The payments must be formally authorised and
recorded in the Treasury Chest Book (FF#19) and the Accountants Register of Payment
(FF#76).
Public Financial Management Manual for Local Governments (PFMMLG) (pages 57 62).
Origination of Payment Request
Operational Department
A payment requisition form (PFMMLG, Figure 6.2. page 58) should be completed, certified by
the head of department and sent with the necessary backing documents to the Chief
Administrator for authorisation. In smaller local governments a letter from the head of
department to the Head of Accounts may be considered to be sufficient.
For payments in respect of goods, the following documents are necessary:
Buplicate copy of iequisition foi goous
Buplicate copy of the 943#6 2,'3"#<& K'-&' (PFNNLu, Appenuix 4.9, page 1S8)
Beliveiy Note fiom suppliei
744-< J&3&/:&- M4%& (PFNNLu, Appenuix 4.11, page 162)
Suppliei's Invoice.

For services and works contracts, the following documents are necessary:
copy of contract/agreement for the service (e.g. construction contract, rent agreement)
Invoices/bills from service provider/contractor
Inspection Report by the contract manager in the user department
Certificate of performance/work completed approved by a technical expert recognized
by the local government.

The head of the department should check that the Local Purchase Order /Contract amount
has been entered into the Budgetary Control Book (PFMMLG, Appendix 5.2, page 164) and
that there are adequate funds in the relevant budget line. This should have been done
immediately the Local Purchase Order is issued or the contract/agreement is signed.
Processing of Payment Request
Inspector/Controller of Accounts
When a payment request or suppliers invoice (together with supporting documents) is
received in Accounts, the Inspector/Controller of Accounts/Accountant should check that the
above documents have been provided, all relevant procurement regulations have been
followed and all necessary approvals have been provided.

If this is the case, the Inspector/Controller of Accounts should check that the Budgetary
Control Book has been completed with the Local Purchase Order /Contract amount and that
there are adequate funds in the relevant budget line. If this is the case the appropriate one of
the following forms is then completed:
FF#40 Cash Payment Order (PFMMLG, Appendix 6.1, page 166)
FF#17 Cheque/Bank Payment Order (PFMMLG, Appendix 6.2, page 167)

The balance available on this budget line according to the Budget Control Book should be
indicated on FF#40/FF#17. The Payment Order is then submitted to the Head of Accounts. If
internal audit is available they should undertake their pre-audit checks at this stage.
Head of Accounts
The Head of Accounts checks that all the relevant forms are attached and have been correctly
completed and authorised. If a cheque is required, this should be prepared by the Accountant/
Book Keeper.
The Head of Accounts checks that the cheque has been properly written, signs the Payment
Order and cheque and submits this and the backing documentation to the Chief Administrator.
Chief Administrator
The Chief Administrator should check that all the relevant forms are attached and have been
correctly completed and authorised. Checks should be undertaken that the payment is for
approved local government business and that adequate funds are available in the budget for
this payment. The Payment Order and the Cheques should be signed and submitted to the
Cashier for cash payment or cheque dispatch.
Cashier
The Cashier should make arrangements for the payee to collect the cash/cheque and sign the
Payment Order on receipt. The Cashier should then stamp the Payment Order Paid. The
Cashier should record the payments in the Treasury Chest Book, complete the Cheque
Dispatch Register (PFMMLG, Appendix 6.4, page 169) and submit the documentation to the
Accountant/Bookkeeper.
Accountant/Bookkeeper
The Accountant/Bookkeeper posts the details of the payments to the following:
FF#76 Accountants Register of Payments (PFMMLG, Appendix 6.5, page 170)
Budget Control Book record actual amounts paid per Payment Order either as
payment of commitments (in the case or LPO/Contracts) or as direct payments.

The Payment Orders should then be filed in date order in the office of the Head of Accounts.
9. Preparing the Payroll
Introduction
The national Ministry of Labour has introduced an electronic payroll system called SSEPS
(South Sudan Electronic Payroll System) with access from each state. SSEPS automatically
generates pay sheets and payroll reports each month. Local governments should use SSEPS
II to generate pay sheets. If SSEPS II is not available in a local government, manual
procedures using the old Establishment Form 7 (for unclassified staff) or Finance Form 13
Salary Control Pay Sheet (for classified staff) (Public Financial Management Manual for Local
Governments (PFMMLG, Appendix 7.1, page 171) should be used to notify the State of any
necessary changes to payroll data.
Employee records
Each local government should maintain up to date records of all staff (in individual personal
files). Any changes to employee records can be made using SSEPS or by completing a
manual Change Notification Form to notify the State.
Processing the pay sheet
All county staff - classified, unclassified, staff seconded or transferred from State or other
levels of government - should be included on the local government pay sheet. Salary payment
should be processed on a per-department basis. For each department a Salary Payment
Request Form should be completed (PFMMLG, Appendix 7.6, page 180). Supporting
documents, such as SSEPS II generated pay sheets (or Finance Form 13 and/or
Establishment Form 7 in the case of the manual payroll system) must be attached to the
Payment Request Form. If the pay sheet is completed at local government level, the
Accountant/ Book Keeper, or another officer assigned by the Chief Administrator should
prepare the pay sheet as follows:
Enter the name of the Department (e.g. Education Department)
Enter the funding source if the staff are being paid with donor funds
Enter the month for which the salary is being paid
From staff personal files, confirm the basic pay and allowances for each official and enter
it onto the payroll.
Enter the total of each type of deduction for each staff e.g. Personal Income Tax and
Pension deductions, and any other deductions as applicable
Subtract total deductions from total salary and allowances and enter this as the Total Net
Pay to be paid per person and the total for the Department
Complete the necessary approvals for the pay sheet and corresponding documents.

The following documents will be printed from SSEPS and submitted to the LOCAL
GOVERNMENT Accounts Unit for payment:
detailed pay sheet for each local government department
summary pay sheet for each local government department (PFMMLG, Appendix 7.3)
bank payment schedule for staff paid through their bank accounts (PFMMLG, Appendix
7.5).

Payment of salaries
Where the local government has a bank account, funds should be transferred direct to the
bank account. Where the local government does not have a bank account, a Bank Payment
Order (Finance Form 17, PFMMLG, Appendix 6.2, page 167) should be prepared and
approved as described in PFMMLG, Chapter 7 to allow the cashier to withdraw money and
hand it to the relevant department or unit to disburse the money.
Salaries are paid to staff:
By bank transfer directly to employees accounts, where possible
In cash for employees without a bank account.

Armed escort should be provided in the case of salaries paid to staff in cash to guard against
theft during transportation from the bank or during the actual distribution.
Local government departments that have units in geographically separate areas, for example
primary schools under the County Education Department, will further transfer payroll cash,
together with the Cash Payment Schedules, to the head of each unit for payment to their staff.
Every employee paid must sign (or thumb print) on three copies of the Cash Payment
Schedule to acknowledge receipt of money. At the end of the cash distribution exercise, the
cashier or senior officer responsible for disbursement must sign the pay sheet. One copy is
kept on file by the distributing officer, one copy is retained on file by the senior official of the
local government department and one copy is sent to the Chief Administrator.
All unclaimed salaries should be immediately returned to the Accounts Unit. A register of
unclaimed salaries is prepared by the Cashier. Any employee who turns up at a later date
signs this register as well as the pay sheet as evidence of receiving their salary.
For employees being paid for the final time in a Finance Form 8 - Last Pay Certificate
(PFMMLG, Appendix 7.7, page 181) should be prepared.
Remitting PIT and Pension remittances
Amounts deducted for Personal Income Tax, Pensions and other deductions are immediately
remitted to the appropriate fund/agency.
Accounting for salary payments
Salary payments are recorded in the Treasury Chest Book and the Accountants Register of
Payments. The Treasury Chest Book records the claim reference number from the Payment
Request Form.
a. In the Accountants Register of Payments the following codes are used:
Basic salary (account code 21100
Allowances, payroll (account code 21101)
Pension contribution (account code 21300)
Incentives (account code 21200
Overtime account (account 21201)
b. Total paid out is recorded on the payments side in the Treasury Chest Book.

10. Imprest and Advances
Definition of Imprest
An imprest is a sum of cash advanced to a public officer to make payments which are
inconvenient to make using the normal payment procedures. This may include a
standing imprest (permanent), issued to a line department for small purchases. It also
includes travel advances made to officers going on official business (retired when the
officer returns).
Authority to Grant Imprest
The Chief Administrator authorises all imprests. All imprests are issued to a single named
officer by the Cashier and recorded in the Treasury Chest Book (and also as a commitment in
the Budget Control Book). They are repaid to the Cashier and recorded in the main Treasury
Chest Book at the end of each year, if not retired before then.
Duties of Imprest Holder
An officer holding an imprest ensures that:
(a) The imprest issued to him/her is only used for the purposes for which is it
issued
(b) Proper receipts are received for all payments made out of the imprest
(c) The imprest moneys and any receipts are kept safe at all times
(d) Travel imprests are retired as soon as the officer returns to the office.
Retirement of a Travel Imprest
An officer issued with a travel imprest retires the imprest by giving the Cashier:
(a) The balance of the cash remaining from the unused imprest
(b) Receipts for all appropriate expenses made, with any necessary explanations
and a summary of the payments.
The Cashier records any return of cash (as a receipt) from an imprest holder in the Treasury
Chest Book (PFMMLG, Appendix 3.10, page 111). The Cashier passes summary of
payments from the imprest holder, with the receipts attached, to the Accountant/Book Keeper.
The Accountant/Book Keeper posts the details of the payments to the following:
FF#76 Accountants Register of Payments (PFMMLG, Appendix 6.5, page 170).
Payments are coded according to the nature of the payments.
Budget Control Book record actual expenses paid by the imprest holder against the
commitment from the original issue of the imprest.
Replenishing a Standing Imprest
When the cash in the imprest is nearly finished, an officer who has been issued with a
standing imprest should provide the Cashier with receipts for all appropriate payments made,
with any necessary explanations and a summary of the payments.
The cashier provides the imprest holder with money to the value of the expenses (so that the
imprest is replenished to the original sum).

As with retiring a travel imprest, the Cashier passes summary of payments from the imprest
holder, with the receipts attached, to the Accountant/Book Keeper. The Accountant/Book
Keeper posts the details of the payments to the following:
FF#76 Accountants Register of Payments. Payments are coded according to the
nature of the payments.
Budget Control Book record actual expenses paid by the imprest holder against the
commitment from the original issue of the imprest.


Use of Standing Imprest

Formal procurement procedures are needed for goods, consultancies or services costing
more than SSP150,000.

The Standing Imprest or petty cash should be used for purchases of SSP100 or less.
Standing Imprest would typically be for balance of SSP1,000.

A Local Purchase Order may be used for purchases of SSP5,000 or less.
11. Selecting a Contractor
Legal framework
The Interim Public Procurement and Disposal Regulations, 2006 are currently in use. The
Public Procurement Act is being enacted. The Ministry of Finance & Economic Planning,
through its Directorate of Procurement, has oversight of all procurement by government
institutions in South Sudan. This guide generally covers procurements estimated to cost more
than SSP150,000 (see pages 31 - 50 of the Public Financial Management Manual for Local
Governments PFMMLG).
Procurement administrative organs/structures
a. Chief Administrator should investigate complaints about procurement, sign contracts /local
purchase orders and monitor contract implementation. They should have a Procurement
Unit, to support this work (PFMMLG, page 33).
b. Procurement Committee is composed of staff appointed by the Chief Administrator to
approve the annual procurement plan, approve the procurement method for each
procurement event, approve members of evaluation panels (not members of the
Procurement Committee), review evaluation panel recommendations, select the contractor
for each tender and approve any amendments to an awarded contract.
c. Procurement Unit should, keep lists of pre-qualified suppliers, compile the annual
procurement plan, coordinate procurement activities, be the secretariat to Procurement
Committee, prepare and issue invitations to tender etc, recommend members of evaluation
panels, keep procurement records and prepare procurement reports.
d. Evaluation Panel should be set up by the Chief Administrator with advice from the
Procurement Committee to evaluate assigned bid submissions and recommend the best
bidder to Procurement Committee for each contract.
e. User department should provide technical input regarding the procurement plan,
specifications, and evaluation etc to the Procurement Unit and Evaluation Panel.
f. Contract manager/ administrator - is a selected person from the user department
responsible for the day to day supervision of contract implementation, certify contractors
work completed so that payments can be made, report on progress of the contract.

Procurement and disposal methods
A local government must use Open Competitive Tendering except as provided otherwise
(PFMMLG, page 35). The procurement methods should be based on the threshold amount as
provided in PFMMLG, Appendix 4.1, page 114 (generally more than SSP150,000).
A. Open tendering methods include
International Competitive Tendering (ICT) publish the invitation to tender nationally and
internationally
National Competitive Tendering (NCT) publish the invitation to tender nationally
Local Competitive Tendering for works (LCT) the invitation to tender is advertised locally
within the local government.
B. Restricted tendering methods used in specified circumstances, include:
Selective Tendering - invite all available suppliers but not less than three.
Request for quotations - invite firms from the list of pre-qualified suppliers/providers.
Single source procurement or direct contracting invite only one provider.
C. Method for Selection of Consultants use the request for proposals method and apply
the two-envelop tendering procedure - evaluate quality then consider cost.

Conducting a procurement event
Procurement should include the following steps:

a) Planning prepare an annual procurement and disposal plan as part of the budgeting
process and have it approved by the Procurement Committee (see appendix.. of the
PFMMLG).

b) Requisition
User department to raise a Procurement Requisition (PFMMLG, Appendix 4.3:
Procurement Requisition Form) with clear specifications, estimated price and funds
available from the Budget Control Book.
Chief Administrator reviews the procurement requisition, confirms the contract is a
priority for the local government, the availability of funds in the budget and, if satisfied,
approves the requisition.
User department - forwards the approved requisition to the Procurement Unit.
Procurement Unit reviews approved procurement requisition, selects an appropriate
procurement method (from the Procurement Plan) prepares a full set of
solicitation/bidding documents using the standard tender/solicitation documents from
Appendix 4.4 of the PFMMLG).
Procurement Committee - reviews and authorises the choice of procurement or
disposal method if different from that in the approved Procurement Plan, ratify notices,
bidding documents etc.

c) Solicitation and selection
Inviting tenderers / bidders advertise based on the method of procurement used.
Issuing bid documents must start issuing bid documents on date of advertising the
tender; and record the firms that have been issued with the documents (PFMMLG,
page 38).
Receive requests for clarifications if any, and record these (PFMMLG, page 38). Any
clarifications given must be given to all firms that took the bid documents.
Receiving the bids/offers from potential suppliers- Bidders must be allowed sufficient
time to prepare and submit their bids as per guideline on page 38 of the PFMMLG.
Bids should be in sealed envelopes properly addressed to the local government and
marked as Tender for supply/construction of . Bids should be recorded in a bids
received book (PFMMLG, page 38). All bids received should be placed in a locked
tender box.
Opening the bids by at least two people (selected from the procurement unit and the
user department) do it immediately after the deadline for submission of bids/tenders
in presence of bidders, record bids received and those attending.
Evaluation of bids an evaluation panel should appraise each bidders
responsiveness to the criteria outlined in the tender document; compare bid prices and
rank the bidders, complete an Evaluation Report Form (Appendix 4.7 of the PFMMLG),
recommend award to the Procurement Committee. For consultancy services apply the
quality and cost based evaluation method
Award of contract Procurement Committee reviews the evaluation report, makes a
decision on bid winner. Results published (details of evaluation ranking of all bidders
and the prices they offered) on notice board for 10 days. The Chief Administrator
issues a notice of award to the winning bidder. The Contract or Purchase Order is
signed by the Chief Administrator.
12. Management of Fixed Assets and Stores
Acquisition of fixed assets
Fixed assets mean things such as land and buildings, vehicles, furniture, equipment
and roads which are used for more than one year. The purchase and disposal of fixed
assets is done in line with the Interim Public Procurement and Disposal Regulations,
2006:
Each fixed asset should be assigned and marked/engraved with an
identification number.
Any fixed assets with a cost of SSP1,000 or more should be recorded in the
fixed assets register.

Fixed Assets Register (PFMMLG, Appendix 8.1)
This register is maintained by an officer assigned by the head of finance and includes:
The name, description of the assets
Date of acquisition and original cost
The Identification number and current location
Disposal date and details if relevant.

Control of fixed assets
Those charged with responsibility for fixed assets are personally responsible for the
proper handling and to prevent loss or theft. Any losses or discrepancies must be
reported promptly to the Chief Administrator.
An annual inventory (physical inspection, counting and recording) of fixed assets
should be performed by the Head of Finance (assisted by internal audit) and
reconciliation made with the fixed asset register.
The Chief Administrator has overall responsibility for ensuring that appropriate
insurance policies for motor vehicles are in force
The Chief Administrator, through the office manager or logistics officer, ensures that
all vehicles are checked/inspected each month and, if necessary, serviced. The
condition of the vehicles is recorded in a file of inspection reports.
Disposal of fixed assets is by an appropriate method, usually tender or auction.

Acquisition of stores
The procurement of stores is in accordance with the Interim Public Procurement and
Disposal Regulations, 2006 and includes:
Stores unit receives a copy of the purchase order from the procurement unit
Receipt of stores and other assets is checked by the storekeeper and an officer
from the user department (or internal audit) and compared with the purchase order.
Storekeeper signs the suppliers delivery note and issue a Goods Received Note
(GRN). GRN is signed by the witness.
Goods received note and suppliers delivery are submitted to Accounts Unit for later
payment.

Stores Issue
Officials request stores on a SF#3 Stores Requisition Form, which is authorized by the
Stores Manager before the storekeeper releases the items from the stores.


Store records
The store keeper maintains a record of each item of stores received and issued in a
book (PFMMLG, figure 8.1, page 67).

Stocktaking
Stores Manager or the Controller/Inspector of Accounts should carry out quarterly
physical stocktaking (physically count) and prepare a stores report. This report is sent
to the Chief Administrator and copied to the Head of Accounts. Where there is an
internal auditor he/she should witness the quarterly stocktake.

13. Internal Audit
The Public Financial Management Manual for Local Governments (PFMLG) defines
internal auditing as:

1# 340%/0,4,< /0-&$&0-&0%@ 4CN&3%/:& #<<,'#03& #0- 340<,6%/0. #3%/:/%5 -&</.0&- %4 #-- :#6,& #0-
/;$'4:& %"& 4$&'#%/40< 48 # 643#6 .4:&'0;&0%D B"& N4C 48 #0 /0%&'0#6 #,-/%4' /< %4 &:#6,#%& %"&
&88&3%/:&0&<< 48 %"& fiuuciaiy iisk management $'43&-,'&<@ 340%'46< #0- .4:&'0#03& $'43&<< ?/%"/0
# 643#6 .4:&'0;&0% #0- %"&0 #-:/<& /%< ;#0#.&;&0% #0- %"& 6&./<6#%/:& 34,03/6 40 #'&#< %4 /;$'4:&
#0- 0&? '/<F ;#0#.&;&0% $'43&-,'&< %4 /0%'4-,3&D> (paiagiaph 1u.S.1, page 76).

The Manual goes on to describe the scope of internal auditing as follows:

# Assessment of the efficiency and effectiveness with which the operations of the
local government are conducted;
# Assessment and providing reasonable assurance about the reliability of financial
reporting;
# Providing assurance on procedures in place to deter fraud as well as to
investigate fraud;
# Assessment of and providing assurance about the procedures in place for
safeguarding assets;
# Measuring and providing assurance about the compliance with the laws and
regulations. (paragraph 10.3.2, page 76)

As such, internal audit can have a range of activities to assist the Accounting Officer
(Chief Administrator) with their responsibilities for internal financial control. Internal
audit is not responsible for putting in place the controls or procedures, but advises
other officials on these. It may review any financial procedures to ensure all the
relevant laws and regulations are being complied with, segregation of duties is sound
and the procedures are completed efficiently.

Areas where internal audit review may be useful include:
# review of official FF#15 - Receipts of Income to ensure that these can all be
accounted for and the associated money is recorded accurately. The issue of
receipt books and their return when completed should be reviewed to ensure
that each receipt and each receipt book can be accounted for and all the
revenue has been accurately recorded in the FF#19 - Treasury Chest Book and
FF#65 - Accountants Register of Receipts
# cash counts surprise cash counts should be undertaken to ensure that the
cash recorded in the Treasury Chest Book is actually present with the cashier,
may also observe the routine monthly cash counts in the cashiers office
# revenue collection - conduct regular on-the-spot inspections to monitor the
activities of the revenue collectors in the field and ensure that all payers are
being identified, registered, billed and made to pay promptly; that all payers are
given an official FF#15 - Receipt of Income and that no payer is evading
payment
# Procurement Committee/Evaluation Panel review their work including
attendance at occasional meetings to ensure all the procurement regulations are
being complied with when appointing a contractor
# stock and fixed assets undertake a periodic review of all fixed assets to ensure
they are being held securely and properly maintained; undertake or observe
stock counts where significant stock items are being held
# payment orders internal audit may review the used payment orders especially
for larger amounts to ensure that they have been prepared accurately and in
accordance with the PFM Manual
# commitment and budgetary control review of Budget Control Books to ensure
they are properly maintained and they are up to date.
# financial reports review the monthly/quarterly reports produced to ensure they
are produced promptly and in line with the PFM Manual.

Pre-Audit
Section 11(9) of the Public Financial Management and Accountability Act, 2011,
states that:

No request for payments shall be approved without prior endorsement by the Internal
Audit Unit.

In addition, FF#17 Cheque/Bank Payment Order requires the Officer in Charge of
Auditing to certify that the payment is order and advised to be paid.

As a result, where an internal audit officer is posted to a local government they should
undertake pre-audit of all payment orders before the payments are made. This check
is to ensure that:
the payment is regular and the correct forms are being used
it has been coded to the correct accounting code
sufficient funds are available from this budget line for the payment
all the necessary authorisations have been made.

Reporting
Internal audit should issue quarterly internal audit reports as well as reports after the
end of every major audit activity or visit. Such reports should summarise the findings
of the internal auditor, recommendations and any responses or actions plans from
management. The reports should be sent to the Chief Administrator and the final
reports should be copied to the Auditor General.
14. Cash and Bank Reconciliation
Introduction
The Cashier should maintain a separate FF#19 Treasury Chest Book (PFMMLG, Appendix
3.10, page 111/112) for cash and a separate one for each bank account operated by the local
government. Each month, or whenever a bank statement is received, the Inspector/Controller
of Accounts should undertake a bank reconciliation to check the accuracy of the balances in
the relevant Treasury Chest Book. Public Financial Management Manual for Local
Governments (PFMMLG) pages 53 55.
Cash Count
At least once a week the Inspector/Controller of Accounts (or internal audit) should count the
cash held by the cashier and make sure this amount is the same as the balance recorded in
the Treasury Chest Book. Any differences should be explained and, if necessary, written
instructions given to the Cashier to adjust the Treasury Chest Book in line with these
differences. This is in addition, to the daily cash counts undertaken by the Cashier.
Bank Reconciliation
The Inspector/Controller of Accounts should undertake a bank reconciliation for each of the
local governments bank accounts every time a bank statement is received for an account (at
least once a month):
Step 1: Tick off all the items on the bank statement against entries in the Treasury Chest
Book for the relevant bank account.
Step 2: Check to the Register of Paid/Out-Going Cheques and the cheque books (and the
list of unpresented cheques from the last bank reconciliation) to ensure that all
issued cheques are recorded in the Treasury Chest Book. Make a list of cheques
issued which do not appear in the bank statement unpresented cheques. Any
cheques outstanding for more than 6 months are written off by writing an instruction
to the Cashier to adjust the Treasury Chest Book.
Step 3: Identify any bank deposits (cash or cheques) recorded in the Treasury Chest Book
which have not yet been recorded on the bank statement. If any such deposits were
recorded during the last bank reconciliation and still do not appear on the bank
statement the bank should requested in writing to explain.
Step 4: Identify all deductions on the bank statement (bank charges, interest, returned
cheques etc). Instruct the Cashier in writing to make the necessary payment entry in
the Treasury Chest Book for each deduction made by the bank.
Step 5: Identify any direct deposits and other receipts on the bank statement that are not
recorded in the Treasury Chest Book. Instruct the Cashier, in writing, to make the
necessary receipt entry in the Treasury Chest Book for each receipt received directly
in the bank account.
Step 6: Identify any errors made in the Treasury Chest Book and instruct the Cashier, in
writing, to make the necessary corrections. Identify any errors made by the bank and
inform them in writing.
After preparing the reconciliation statement, the bank statement balance has to agree with the
balance in the Treasury Chest Book for the bank account. Any remaining differences which
cannot be exactly explained must be investigated before the reconciliation is considered to be
completed properly.
The Inspector/Controller of Accounts should submit to the Head of Accounts:
the complete bank reconciliation statement
the relevant adjusted Treasury Chest Book and bank statement
a listing of unpresented cheques,
a listing of bank deposits yet to be recorded on the bank statement
any further explanations.

TREASURY CHEST BOOK ADJUSTMENTS
Step SSP SSP
Original balance from Treasury Chest Book XXXX
Add:
Credits to bank not yet recorded in the Treasury Chest Book:
Credit transfer 5 XX
Interest received from Bank 5 XX
Deposit Understated in Treasury Chest Book, etc. 6 XX XXX
XXXX
Less:
Bank charges 4 XX
Dishonoured Cheques 4 XX
Bank Charges - not yet recorded in the cashbook 4 XX
Standing order Telephone bill etc. not in cashbook 4 XX XXX

Balance from adjusted Treasury Chest Book (c/d below) XXXX


BANK RECONCILIATION STATEMENT FOR THE MONTH OF ______________

Step SSP SSP

Balance from the Bank Statement XXXX
Add: all receipts paid to bank, but not on statement 3 XX
XXXX
Deduct: Un-presented cheques 2 XX

Adjusted balance as per Bank Statement XXXX

Adjusted balance as per Treasury Chest Book (b/f from above) XXXX

Prepared by: Checked by:
(Name / title) [Inspector/Controller of Accounts] (Name / title) [Head of Accounts]
Date: Date:

Authorised by:
(Name / title) [Chief Administrator]
Date:

The Head of Accounts should check carefully that the bank reconciliation has been
undertaken properly and any inconsistencies are fully explained, instructions have been given
to the Cashier and adjustments made to the Treasury Chest Book. If they are content they
should sign and date the reconciliation form and submit this to the Chief Administrator.
Chief Administrator should review the completed bank reconciliation statement and supporting
documents, and sign the statement. After review and approval, the reconciliation statement
and supporting documents should be filed by the Inspector/Controller of Accounts.
15. Preparation of Financial Reports
Introduction
Provision of Financial Reports is a vital aspect of public accountability by the Chief
Administrator as Accounting Officer of a local government. Annual financial reports should be
produced within three months of the financial year-end and submitted to the Audit Chamber.
Monthly financial reports should be produced within 15 days of the end of the month and be
submitted to the Executive Committee.
Public Financial Management Manual for Local Governments (pages 68 - 73)
Preparation
The Head of Accounts should ensure that the following documents have been posted to the
end of the month and the necessary totals have been prepared:
FF#65 Accountants Register of Receipts totals of all receipts by Chart of Accounts
code for the reporting period
FF#76 Accountants Register of Payments totals of all payments by Chart of
Accounts code for the reporting period
FF#19 Treasury Chest Book amount of cash on hand and at bank on the reporting
date (one for cash and one for each bank account)
Budget Control Book and Approved Annual Budget size of budget for each reporting
line for the reporting period and the financial year
Financial report for the previous period results for the previous period and the cash
and bank total carried forward.

The Head of Accounts should check that the Bank Reconciliation has been properly
completed for the end of the reporting period and authorised by the Chief Administrator.
The Head of Accounts should perform the following overall reconciliation:
Total of cash and bank balances from the previous month (from the
financial report for the previous period)
Plus total receipts from Accountants Register of Receipts
Less total payments from Accountants Register of Payments
Equals the cash and bank balances for the end of the current month
(from the balances of the Treasury Chest Books).
Production of the Monthly Financial Report
The Head of Accounts should extract the necessary figures from the books of account as
indicated above and produce the Financial Report. This should be compared to the report for
the previous period and any anomalies or questions should be considered, for example, has
there been any significant change in salaries or other expenditure? Has there been any
significant change in the level of revenue collected? Are any of the budget lines overspent or
in danger of being over spent before the end of the year? A brief written report should be
produced for the Chief Administrator and other members of the Executive Committee to
highlight and explain such issues and the main aspects of the financial report.
Format of the Monthly Financial Report
The basic minimum monthly financial report should be produced as follows:
___________ COUNTY
STATEMENT OF RECEIPTS AND PAYMENTS for the Month of _______
Current
Quarter
Cumulative
to date
Annual
Budget
Balance

Code Description 1 2 3 3-2
Opening cash & bank balance (a) X X - -
RECEIPTS
113 Taxes on property X X X X
114 Taxes on goods and service s X X X X
116 Unclassified Taxes X X X X
etc X X X X
Total Receipts (b) X X X X

PAYMENTS
211 Salaries and wages X X X X
212 Incentives and Overtime X X X X
213 Employer Pension Contribution X X X X
etc X X X X
Total payments (c) X X X X


Cash & bank balance carried
forward (a + b c)
X X X X


CERTIFIED: _________________________________ Date_________________________
Head of Accounts/Finance

APPROVED: ________________________________ Date__________________________
Chief Administrator

As the level of revenue raised and so the level of expenditure of a local government rises, the
full set of financial reports as indicated in the Public Financial Management Manual for Local
Governments (pages 68 - 73) should be produced. These will include separate reports of the
receipts and payments for each department. When local governments are receiving
budgetary or other support from donors the full requirements of the Manual and any other
specific requirements of the donors should be fully complied with.
Review by Chief Administrator
The Chief Administrator should carefully review the monthly Financial Report and seek
answers to any questions they may have from the Head of Accounts.
Distribution of financial reports
Monthly financial reports should be displayed on the local government notice board. Payam
and block council administrators should submit copies of the monthly financial reports to the
Chief Administrator of the county/ urban council not later than the 10th day after the end of the
month.
Chief Administrators of counties/ urban councils should submit copies of quarterly financial
reports to the State Ministry of Finance and the State Ministry of Local Government not later
than the 15th day after the end of the quarter.
16. Preparing a Basic/ Primary School Budget
1. General principles
The Beau Teachei is iesponsible foi contiolling school funus. Paients Teacheis Association
agiees the annual buuget foi the school anu ieceives financial iepoits fiom the Beau Teachei.
The buuget will uetail all souices of ieceipts of income foi the school. All the costs of the school's
planneu activities shall be coveieu by the buuget e.g. auministiative costs (such as cleaning
mateiials, fuel, etc.), cuiiiculai activity costs (such as text books, chalk, etc.) anu co-cuiiiculai
activities (such as games, physical euucation, music competitions, etc.).
The heau teachei shoulu ensuie that the buuget summaiy is uisplayeu on a notice boaiu
commonly visiteu by stakeholueis. The buuget shoulu be consiueieu a public uocument, anu
maue available on to the Bepaitment of Euucation, paients uonois etc on iequest.
The buuget will be uevelopeu in the foimat given below.
2. Estimating the income/receipts
The key areas of receipts and payments at the school level are highlighted below:

Figure 1: Illustration of Details of Revenue Budget for a School
Revenue
Code
Description
Budget
for FY
2012/13
(Current
year)

(SSP)
Outturn for
FY 2012/13
(Actual to-
date for the
Current
year)
(SSP)
Budget for
FY 2013/14
(Coming
year)

(SSP)
13 Grants 0 0 0
132 Transfers current from other government units 0 0 0
(Transfers received from the State governments for operating costs)
133 Transfers capital 0 0 0
(Transfers received from the State governments for capital expenditure)
14 Sale of Goods and Services 26,000 14,550 20,000
142 Other administrative fees 26,000 14,550 20,000

(Includes Registration fees, Development fees, Examination fees, Report card fees, Emergency fees, Payam fees, School
uniform fees)
Total School Revenue Budget for the year 26,000 14,550 28,000

3. Formulating the Expenditure Budgets

Figure 2: Illustration of the format of the School Expenditure Budget by item
Revenue
Code
Description
Budget for FY
2012/13
(Current year)

(SSP)
Outturn for
FY 2012/13
(Current year
to-date)
(SSP)
Budget for FY
2013/14
(Coming year)

(SSP)
21 Wages & Salaries 6,000 4,000 7,000
211 Wages and salaries
(Incluues Base Salaiy, Allowances Payioll anu
Allowances - 0thei)
2,000 2,000 3,000
212
Incentives and Overtime
2,000 1,000 2,000
213 Pension contributions
(Employer Pension Contribution)
1,000 500 1,000
214 Social benefits
(Incluues Rent foi staff accommouation, Teiminal
Benefits, Beath Benefits & Funeial Expenses, Neuical
Benefit anu 0thei Social Benefits)
1,000 500 1,000
22
Use of Goods and Services 12,000 7,000 10,000
221 Travel
(Incluues Tiavel Allowances - Bomestic anu
Inteinational anu Tiavel costs Bomestic anu
Inteinational)
2,000 500 1,000
222 Staff training and other staff costs
(Incluues Tiaining (Bomestic), Tiaining (abioau),
Tuition fees, Woikshops, Seminais & Confeiences anu
Staff ielocationiepatiiation costs)
3,000 500 2,000
223 Contracted services
(Incluues Casual laboui, Contiacteu technical anu
piofessional seivices, contiacteu secuiity anu
cleaning, piinting anu publishing, auveitisement anu
meuia campaigns, vehicle iental, Biie of equipment,
plant anu machineiy, tianspoitstoiage chaiges, tiaue
show anu exhibition)
0 1,000 3,000
224 Repairs and Maintenance
(Incluues vehicle maintenance, maintenance of othei
tianspoit equipment, builuings anu civil woiks-
powei, watei)
3,000 100 2,000
225 Utilities and Communications
(Incluues watei anu seweiage chaiges, electiicity anu
telecommunication, postage anu couiiei costs)
1,000 200 500
226 Supplies, Tools and materials
(Incluues Neuical supplies-uiugs, Woikshop anu
laboiatoiy supplies, books, unifoims, foou anu iations,
spoits equipment, Stationaiy, chalk, haiuwaie anu
softwaie supplies foi ICT, photocopieis, office watei,
tea anu soft uiinks, fuel & lubiicants foi tianspoit)
2,000 1700 1,000
227 Other operating expenses
(Incluues Bank chaiges, Subsciiption to Papeis,
peiiouicals anu othei losses (e.g. cash wiite off))
1,000 3,000 500
24
Other expenditure 3,000 2,050 3,000
244 Social assistance benefits
(Incluues Bonations to piivate inuiviuuals anu
oiganisations, Stuuent Benefits anu 0thei social
secuiity benefits)
3,000 2,050 3,000
28
Capital Expenditure 5,000 1,500 8,000
281 Infrastructure and land
(Incluues Resiuential builuings foi goveinment
officials, non-iesiuential builuings: hospitals, schools,
etc. anu lanu)
3,000 1,000 4,000
282 Vehicles
(Includes motor bikes, cars, Bus or Omni bus, Lorry and
Other transport equipment)
0 0 0
283 Specialized Equipment
(Incluues Communication equipment, geneiatoi,
boilei, fiiuge, meuical equipment, laboiatoiy anu
woikshop equipment, tents anu impeimanent
stiuctuies, office fuinishing, fuinituie, aii
conuitioneis, computei, copiei, anu ICT equipment)
2,000 500 4,000
Total Expenditure Budget 26,000 14,550 28,000

17. Preparing a Budget for a Primary Health
Centre

1. General principles
The Primary Health Committee agrees the annual budget and receives financial reports from the Officer
in Charge. The Officer in Charge is responsible for controlling the funds of the unit in line with the
agreed budget.
The Officer in Charge should ensure that the budget summary is displayed on notice boards commonly
visited by its stakeholders. The budget is a public document and should be made available to the County
Department of Health, patients, donors, etc on request.
2. Preparation of the budget
The Officer in Charge of the Primary Health Centre must prepare a budget every year in line with
guidance and formats issued by the Ministry of Health and Social Welfare and other government
ministries and agencies. The budget must then be discussed and approved by the Primary Health
Committee. The budget should translate the Centres planned activities into financial terms.
The budget is prepared in two stages:
First, the Officer in Charge of the centre should identify all expected revenue items including transfers
from the national and state governments and own source revenue e.g. users fees and donors.
The Officer in Charge should then estimate how much is expected from each source and then add all
sources to get total expected revenue for the unit for the year. It is this total expected revenue, which
must then be shared out (allocated) to activities under the expenditure budget.
For grants and donations, the head of the unit must get the revenue figures to put into the budget from
the County department that is responsible or Memoranda of Understanding between the health centre
and donors. Other items of revenue should be estimated from past experience.
Secondly, after the expenditure items have been identified, estimates of the amount to be incurred for
each item should be made. For salaries, the estimate must be made using the current salary of each staff
but taking into consideration salary increases (if any) for the coming year as announced by the
Government and other information from the health department at the County.
The other expenses should be estimated based on previous experience; for example, expenditure on
injection syringes required can be based on previous years usage of syringes.
!--'/#$3#)%" %0 3 +N; O")# 1'&2.#
Code Description
Budget for
FY
2012/13
(Current
year)
(SSP)
Outturn for
FY 2012/13
(Actual to-date
for the Current
year)
(SSP)
Budget for
FY 2013/14
(Coming
year)
(SSP)
Revenue
13 Grants 5,000 2,000 6,500
132 Transfers current from other government units 2,000 1,000 2,500
133 Transfers capital 3,000 1,000 4,000
14 Sale of Goods and Services 30,000 20,000 32,000
142 Other administrative fees (e.g. Users fees) 30,000 20,000 32,000
Total PHC Unit Revenue Budget for the year 30,000 20,000 32,000

Expenditure
21 Wages & Salaries 4,500 4,000 5,200
211
Wages and salaries
2,000 1,000 2,000
212
Incentives and Overtime
1,000 500 1,500
213
Pension contributions
1,000 500 1,000
214
Social benefits
500 500 700
22
Use of Goods and Services 9,000 6,900 11,300
221
Travel
1,000 700 1,000
222
Staff training and other staff costs
2,000 1,400 1,800
223
Contracted services
500 300 3,000
224
Repairs and Maintenance
1,500 1000 2,500
225
Utilities and Communications
1,000 800 1,500
226
Supplies, Tools and materials
2,000 1,700 1,000
227
Other operating expenses
1,000 1,000 500
24
Other expenditure 2,500 1,500 3,000
244
Social assistance benefits
2,500 1,500 3,000
28
Capital Expenditure 14,000 7,600 12,500
281
Infrastructure and land
3,000 1,000 4,000
282
Vehicles (ambulance)
8,000 4,600 5,000
283
Specialized Equipment
3,000 2,000 3,500
Total Expenditure Budget 30,000 20,000 32,000

After the Piimaiy Bealth Committee has passed the budget, it should be submitted to the Department
of Health and Social Welfare at the county for review and advice. Some changes may then have to be
made to the budget to include comments received from the county department headquarters.
17. Primary School Financial Management

1. The school budget
The key areas of receipts and payments at the school level are highlighted below. Where goods
or services are received from the State or a donor these should be described:

Figure 1: School Revenue Budget
Revenue
Code
Description
Budget
2013/14

(SSP)
132
Transfers current from other government units
(Grant from State Government for operating costs)
0
133
Transfers capital
(Grant from State Government for capital expenditure)
0
135 Transfers from International Organisations
(for example, teacher kit from UNICEF)
0
142 Other administrative fees
(Registration fees, Development fees, Examination fees, Report card fees, Emergency fees, Payam
fees, School uniform fees)
20,000
Total School Revenue Budget for the year 28,000


Figure 2: School Expenditure Budget
Expenditure
Code
Description
Budget
2013/14

(SSP)
21 Wages & Salaries 7,000
Wages and salaries 3,000 211
(Incluues Base Salaiy, Allowances Payioll anu Allowances - 0thei)
212 Incentives and Overtime 2,000
213 Pension contributions
(Employer Pension Contribution)
1,000
Social benefits 1,000 214
(Incluues Rent foi staff accommouation, Teiminal Benefits, Beath Benefits & Funeial Expenses, Neuical Benefit
anu 0thei Social Benefits)
22
Use of Goods and Services 10,000
Travel 1,000 221
(Incluues Tiavel Allowances - Bomestic anu Inteinational anu Tiavel costs Bomestic anu Inteinational)
Staff training and other staff costs 2,000
222
(Incluues Tiaining (Bomestic), Tiaining (abioau), Tuition fees, Woikshops, Seminais & Confeiences anu Staff
ielocationiepatiiation costs)
Contracted services 3,000 223
(Incluues Casual laboui, Contiacteu technical anu piofessional seivices, contiacteu secuiity anu cleaning,
piinting anu publishing, auveitisement anu meuia campaigns, vehicle iental, Biie of equipment, plant anu
machineiy, tianspoitstoiage chaiges, tiaue show anu exhibition)
Repairs and Maintenance 2,000 224
(Incluues vehicle maintenance, maintenance of othei tianspoit equipment, builuings anu civil woiks- powei,
watei)
225 Utilities and Communications
(Incluues watei anu seweiage chaiges, electiicity anu telecommunication, postage anu
couiiei costs)
500
Supplies, Tools and materials 1,000 226
(Incluues Neuical supplies-uiugs, Woikshop anu laboiatoiy supplies, books, unifoims, foou anu iations, spoits
equipment, Stationaiy, chalk, haiuwaie anu softwaie supplies foi ICT, photocopieis, office watei, tea anu soft

uiinks, fuel & lubiicants foi tianspoit)
Other operating expenses 500 227
(Incluues Bank chaiges, Subsciiption to Papeis, peiiouicals anu othei losses (e.g. cash wiite off))
24
Other expenditure 3,000
Social assistance benefits

3,000
244
(Incluues Bonations to piivate inuiviuuals anu oiganisations, Stuuent Benefits anu 0thei social secuiity
benefits)
28
Capital Expenditure 8,000
Infrastructure and land 4,000 281
(Incluues Resiuential builuings foi goveinment officials, non-iesiuential builuings: hospitals, schools, etc. anu
lanu)
282 Vehicles
(Includes motor bikes, cars, Bus or Omni bus, Lorry and Other transport equipment)
0
Specialized Equipment 4,000 283
(Incluues Communication equipment, geneiatoi, boilei, fiiuge, meuical equipment, laboiatoiy anu woikshop
equipment, tents anu impeimanent stiuctuies, office fuinishing, fuinituie, aii conuitioneis, computei, copiei,
anu ICT equipment)
Total Expenditure Budget 28,000


2. Recording Receipts

The Parent Teacher Association should agree all fees to be charged by the school each year.
Arrangements for reducing or not charging fees for poor families should also be agreed. All
income should be recorded in a book ruled as in Figure 3. An official FF#15 - Receipt of
Income form (Public Financial Management Manual for Local Governments, Appendix 3.4,
page 105) should be provided to everyone who pays money to the school. The original is
given to the person giving the money and the duplicate kept in the book.
All receipts should be paid into the school bank account.
Figure 3: Record of all receipts by the school
Date Name of payer Purpose of the payment Receipt/ invoice
No.
Amount Signature
of payer





3. Recording Payments

All income should be recorded in a book ruled as in Figure 4. Invoices or receipts should be
kept for all payments and these should kept on file in date order.

Figure 4: Format of an expense record for a service delivery unit
Date Name of payee Purpose of the payment Receipt/ invoice
No., if any
Amount Signature
of payee







4. Cash Reconciliation

Each month the Head Teacher should prepare a reconciliation of all the receipts and
payments and compare this to the cash held and the balance in the bank book as shown in
Figure 5. Totals (a) and (b) should be the same.

This reconciliation should be reviewed and signed by the School Treasurer and kept on file.
Figure 5: Cash reconciliation:
PP ,%'"&/
Balance of bank anu cash at 1
st
}uly 2u12: XXX

ABB: Total of all ieceipts by school since 1
st
}uly 2u12: XXX
XXX
S0BTRACT: Total of all ieceipts by school since 1
st
}uly 2u12: XXX

T0TAL (a): XXXX



Cash helu by the Beau Teachei at the enu of the month: XXX
Bank balance at the enu of the month: XXX
T0TAL (b): XXXX

5. Financial reporting

At the end of each school term, the Head Teacher should prepare a financial report after
completing and agreeing a reconciliation with the school Treasurer. After the report has been
agreed by the Parent Teacher Association it should be sent to the Director of the Education
Department and copied to the Chief Administrator.

Figure 6: Format of Financial Report for a Primary School (Termly)

INCOME AND EXPENSE STATEMENT FOR THE PERIOD ENDED ____________
SSP
Balance brought forward XXXX

Income (source of income)
School fees etc XXX
Grants received from the State/County XXX
Grants or materials received from donors (briefly describe if materials
received rather than cash)
XXX
Total Income XXXX

Expenditure Items
School uniforms XXX
Pupil kits and materials XXX
Teacher kits XXX
Maintenance XXX

Development expenditure
Total Expenditure XXXX

Balance/Deficit carried forward (Total Income minus Total Expenditure, plus
balance brought forward)
XXXX