CBC Admin Manual

HOW TO SET UP A BASIC
ADMINISTRATIVE
SYSTEM
FOR YOUR LNGO
Volume 4 of the CBC Do-It-Yourself Training Manuals
Developed by Lainie Thomas
CBC Administrative Manual,

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PHILOSOPHY OF THE CBC
Local non-governmental organizations, or LNGOs, are increasingly

important elements of Somaliland civil society. They have been a vital
part of the reconstruction of Somaliland through their development work
in all sectors of society. As their capacity grows, Somaliland’s will too.
Since the country was formed in 1991, over 600 LNGOs have registered
with the Ministry of National Planning and Coordination, and it is
estimated that hundreds others exist that have not registered. However,
of them, only a small fraction has the capability to design and implement
meaningful projects. With stronger organizational structures,
administrative systems, and project management skills, we hope that
Somali LNGOs will be able to carry out the long-term reconstruction and
development work that is needed.
The Capacity Building Caucus (CBC) has developed this series of training
manuals to give LNGOs in Somaliland a tool that they can use to help
themselves develop their capacity to achieve their goals and objectives.
The Capacity Building Caucus is a group of international NGOs working in
Somaliland who believe that strong coordination among the organizations
working in capacity building (CB) with LNGOs will benefit their partners. In
specific, LNGOs will benefit from receiving a consistent message from
their donors on what standards are acceptable for the management and
operation of any organization. As a result, the CBC has developed a series
of manuals designed as do-it-yourself guides for improving an
organization’s capacity to achieve its goals.
The approach proposed in these manuals is based on the assumption that

reaching development goals implies that people become actors of their
own development. These manuals, therefore, are based upon a set of
common capacity building principles supported by the CBC. The following
list of guiding principles has been designed to help organizations with the
implementation of their capacity building activities. These are things that
you should consider as your organization works towards achieving its
goals:
1. Institutional Capacity Building: Capacity-building activities

conducted by your organization should be designed as much as possible
to strengthen your overall organization. Training should not be limited to
one or two individuals, and support should be given to skills sharing.
2. Community Participation: LNGOs must develop strong ties to the

communities in which they work through participation at the community
level. The voice of your partners must be considered as you develop your
organization’s capacity to work in the community. They should be key
stakeholders and should help guide the direction of your organization.

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3. Sustainability: Capacity-building activities must be based on locally
sustainable practices. Your organization should work toward the
organizational, technical, and financial sustainability of projects. Your
organization should be committed to the promotion of community building
and grassroots participation.
4. Accountability: Clear agreements about accountability (financial and

programmatic) must be made between your organization and various
stakeholders including communities, donors, partners and government
institutions. When developing the capacity of your organization, lines of
communications must remain open and clear.
5. Local Partner Relations: Your organization should promote increased

formal and informal information sharing among partners. Despite internal
constraints, LNGOs must remain flexible and listen to the priorities of their
partners, not follow donor-driven commands. Your organization should
support its partners and respect the diversity of its members and target
constituencies, as well as the spectrum of its activities.
Based upon the above set of principles, the CBC has developed this series
of manuals. They contain activities that the staff and/or members of an
organization can complete together to strengthen various areas of their
organization. Since every LNGO is different, there is not a single set of
instructions for capacity building. That is, the materials are to be used as
a basis for discussions leading you and your organization toward more
informed decisions. People must make these decisions for themselves,
adopting them as part of their own thinking. Values and principles cannot
be imposed upon others. Think of these manuals as tools in your toolbox
that you may use to build your organization however you want. Since the
long-term future of Somaliland lies in the hands of local people,
empowering them to help themselves will ensure that its development
continues.
These training manuals are for use by all LNGOs who need to develop
basic operational tools, and therefore these manuals may be reproduced
freely as long as no profit is made from doing so. We only request that
the CBC be mentioned when reproduced. We welcome feedback and
ideas for improvement to this manual from those who have used it.
The Capacity Building Caucus

Action Nord Sud/Handicap International, CARE, Danish Refugee Council,
International Cooperation for Development, International Rescue
Committee, Progressive Interventions, Save the Children US, Swiss Group
Hargeisa, Somaliland
July 2001

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WHERE TO START IN BUILDING YOUR CAPACITY
Building the capacity of your organization requires a lot of work. It can be

overwhelming if you do not know where to begin. To help you start, the
CBC has made a checklist of skills that you should develop to make your
organization better. These skills also match those in the LNGO
assessment tool that the CBC has developed, although they are not
necessarily grouped in the same way in the assessment tool as in the
manuals.
To help you develop those skills, the CBC has developed a series of do-it-
yourself manuals so that you can practice them. These manuals are
available from any member of the CBC. If you need further help on the
issues or activities presented in the manuals, you should contact the CBC.
They will refer you to a member of the CBC Trainer’s Pool, a group of
Somali trainers who are qualified to work with LNGOs in capacity building.
You may use the following checklist as a starting point to identify the
areas in which your LNGO needs improvement. Although it is not required
that you work through the manuals in the order that we have proposed,
they have been numbered in what we feel is the most logical way. For
example, you will need to refer to your organizational structure chart in
nearly every manual, so if you have not made a good structure in volume
one, you will not be able to do the activities in the other volumes as
successfully.
FOCUSING THE ORGANIZATION:

Every organization needs some basic structural elements to give it focus.
These are documents or ideas that describe the organization, its
objectives, values, structure, and methodology. Usually when an
organization is founded, the founders have developed these concepts,
although they may not necessarily be written and well defined. However,
once these are clarified and accepted by the organization, a direction has
been established and it becomes easier to develop the rest of the
organization.
Step 1: Structure and Governance

 Vision statement- Do the members have a clear social vision of what
they are working towards?
 Principles of operation- Does your organization have a clear set of
principles for both internal operation and for working with beneficiaries?
 Mission statement- Has the organization developed a statement that
distinguishes it from other LNGOs and describes the organization and its
purpose? Is it up-to-date and realistic?

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 Clear organizational structure- Does the organization have a clear
structure that identifies the role of each staff member, clarifies all of the
job responsibilities, and indicates the work the organization does?
 Leadership/management- Does the leadership body of the
organization have a well-defined role? Does the management have a
well-defined role? Are these groups capable of fulfilling their roles?
 Constitution and organizational values/methodology- Is the
organization’s constitution a real reflection of the organization? Do the
members have an active role in the organization? If so, is the process of
joining and participating in the organization well defined in the
constitution?
 Written strategic plan or activity plan- Knowing the mission,
values, staff, and budget of the organization, as well as the needs of the
target group, does the NGO have a realistic and effective plan for what it
wants to do over the next few years? Has the organization identified what
resources and how much time it needs to implement these activities?
How to Set-up Your LNGO (Volume 1) will help you to make your
mission statement, structure your organization, train your leadership and
management, and write your constitution.
How to Write A Strategic Plan for Your LNGO (Volume 2) gives you
step-by-step instructions for conducting research and developing a
strategic plan.
RUNNING THE ORGANIZATION:

Once the organization has a clear direction, then it is time to begin setting
up the administrative and financial systems that will give it the ability to
run its projects. When applying for project funds, you must show that you
organization has the capacity to manage the funds and activities that you
propose. Effective administrative and financial systems are a sign that an
organization has the capacity to run a project.
Step 2: Organizational Management

 Working budget- Has the organization identified and planned what to
do with all of its resources? Has the organization identified what its needs
are for fundraising? If the budget has already been developed, is it being
followed?
 Financial resource management- Does the organization have a
financial policy and system for regular financial reporting, cash
management, and accounting?
 Material asset management- Are appropriate polices and practices
for managing the organization’s fixed assets, inventory, procurement, and
vehicle use in place? Are records kept and filed in a systematic way?
 Human resource management- Does the organization have set
policies and practices for recruiting, retaining and motivating staff, and
for staff development? Are there personnel policies, staff contracts and

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up-to-date job descriptions, regular staff evaluations and meetings, and
good staff relations?
How to Set Up A Basic Accounting System for Your LNGO (Volume

3) shows you how to develop a budget, then set good procurement
procedures, and write and implement good financial policies. The manual
includes sample forms that you can use.
How to Set Up A Basic Administrative System for Your LNGO

(Volume 4) takes you through the setting up of basic administrative
systems, including staff management, inventory management, and
reception systems. This volume also includes sample forms.
RUNNING THE PROJECTS:

A good LNGO must help the community identify its needs and help them
develop practical solutions to meet these needs. The projects must be
well run and supported by both the beneficiaries and the organization.
Step 3: Project Management

 Principles of designing and implementing a project- Does your
organization have a clear set of principles for both internal operation and
for working with beneficiaries?
 Understanding your vision- Have you clarified your organizational
vision or mission so that your project is a step towards reaching your
vision?
 Identifying a project- Have you conducted a needs assessment
where your target group identified its needs? Have you examined the
cause and effect relationships of your identified projects? Are you able to
rank which projects are feasible to narrow your scope? Have you selected
a project that addresses the needs that the community has prioritized?
 Fieldwork and research- Have you done careful fieldwork using
participatory methods to clearly identify what development work needs to
be done?
 Concept paper- Have you written a clear concept paper outlining
what you want to do, why, and how?
 Writing the proposal- Is the proposal for your project well written
and clear? Does it include specific indicators for the success of your
project?
 Managing the project- Is the project well managed? Is it well
documented? Is it reaching its objectives?
 Monitoring and evaluating- Is the project operating according to the
plans in the proposal? Is someone checking the indicators to see if they
are being met? Has the project made a significant, sustainable change in
the lives of its target group?
How to Design and Manage a Project for Your LNGO (Volume 5)

takes you step-by-step through designing and managing a project. It

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looks specifically at how you need to work with your target group so that
there is the best chance of changing the attitudes of your target group.
BUILDING THE ORGANIZATION:

An organization is more than just projects and an office. An NGO must
work with its constituency and beneficiaries. It must also develop good
relations with the government and with other development agencies, both
local and international.
Step 4: Networking and Publicity

 External relations- How is the organization known among its
beneficiaries, donors, the government, and other local organizations? Is
the organization an active member of the community?
 Public relations- How is the organization known by the public in its
community (outside of its target group)?
 Advocacy- Can the organization make changes that benefit its target
group through its work? Is the organization a “voice for change”?
 Mobilization- How well can the organization mobilize resources
(human, material and financial) and the community?
SUSTAINING THE ORGANIZATION:

For an organization to survive long-term, it must operate successfully with
the community. The organization should consider who its members are,
whom it represents, and on whom it depends. Sustainability of an
organization relates to its independence: the more independent an
organization is, the more sustainable it will be.
Step 5: Further Development- Sustaining Your Organization

 Women and minorities- How well are women and minority groups
(minority clans, disabled people, etc.) represented within the organization
and as its beneficiaries?
 Organizational diversity- Does the leadership, staff, and
membership of the organization represent a diverse set of backgrounds,
experience, and knowledge?
 Autonomy- How easily can the organization set its own agenda? Do
political movements, the government, or other forces influence it?
 Financial independence- Is the organization “donor driven”? How
many of the organization’s activities are determined by the
organization instead of by available funds?

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TABLE OF CONTENTS
PHILOSOPHY OF THE CBC.........................................................III
WHERE TO START IN BUILDING YOUR CAPACITY..........................V
INTRODUCTION........................................................................2
1- FILING AND RECORDKEEPING.................................................4

IMPROVING YOUR FILING SYSTEM............................................................7
2- MATERIAL RESOURCE MANAGEMENT.......................................9
2.1- FIXED ASSET MANAGEMENT............................................................11
SUMMARY OF THE FIXED ASSET FORMS.................................................13
2.2- INVENTORY MANAGEMENT..............................................................19
OVERVIEW OF FIXED ASSET AND INVENTORY MANAGEMENT................22
SUMMARY OF THE INVENTORY FORMS...................................................24
2.3- VEHICLE MANAGEMENT...................................................................31
SUMMARY OF THE VEHICLE MANAGEMENT FORMS................................32
3- HUMAN RESOURCE MANAGEMENT........................................37
SUMMARY OF THE HUMAN RESOURCE MANAGEMENT FORMS...............40
4- OFFICE MANAGEMENT..........................................................55
SUMMARY OF THE OFFICE MANAGEMENT FORMS..................................62
5- ADMINISTRATIVE AUDIT.......................................................66
6- HOW TO WRITE ORGANIZATIONAL POLICIES..........................68

20 QUESTIONS FOR POLICY MONITORING AND EVALUATION.................70
GUIDELINES FOR DEVELOPING A FIXED ASSET POLICY..........................72
GUIDELINES FOR DEVELOPING AN INVENTORY POLICY..........................73
GUIDELINES FOR DEVELOPING A VEHICLE POLICY.................................74
GUIDELINES FOR DEVELOPING A HUMAN RESOURCE POLICY................75
SUMMARY OF ADMINISTRATIVE RECORDKEEPING......................77

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INTRODUCTION
This manual has been developed by the CBC for the use of LNGOs in
Somaliland wishing to either establish or improve their administrative
system. This training manual may serve either as a do-it-yourself
workbook for organizations or as a training manual to accompany formal
training. Any organization working to the standards outlined in these
manuals will certainly have met CBC standards for its partners.
Administration means managing the activities of an organization and its

projects. The Administration Department is the part of the organization
that keeps the records about the office and the projects. The other main
part of an organization is the Projects Department, and those people are
responsible for implementing the NGO’s projects.
This manual looks at four main areas for establishing an administrative

system: filing, material resource management, human resource
management, and reception. Then, there is a full administrative audit
that you can use to monitor and evaluate your administrative systems. As
you establish these systems, you should make written policies to confirm
what steps should be taken by whom, and when. We have included blank
forms for the NGO to use itself or to adapt as needed, as well as
guidelines for making administrative policies.
This book has been developed with reference from the CARE Internal
Control Manual’s section on administrative systems, which was developed
for their partners in the Somali Partnership Program. Many thanks go to
CARE for their work in outlining a good administrative system for LNGOs.
Although one can manage a project or an organization by looking at what

is happening, it is better administrative procedure to keep written records
of what goes on. Some reasons for this are that people forget what they
have seen, and often staff members change and the new staff does not
know what happened before. Written documents also make writing a
report easier. An Administrator can manage an LNGO office well by
keeping as few as ten written documents up-to-date. Some require daily
updating while others do not require updating as often.
Before you start this manual, you should appoint one person to be your
Administrator. Since the job requires keeping written documents, the
Administrator should be someone who can read and write. In many
offices, the same person manages the administration and the finance. It
is possible to appoint one Administrator and one Accountant, or just one
person, the Administrator/ Accountant, if your NGO is small and you do
not have many activities going on at once.

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Of course, you will also need an Executive Director to approve and
oversee what the Administrator is doing. In addition, some Administration
Departments also have an Administrative Assistant, Secretary, a
Storekeeper, a Cleaner, Watchmen, and a Driver. However, start with an
Administrator and add other people as the workload increases; it is not
necessary in a small NGO to have all of these employees.
If you are a small NGO, then look for the * symbol beside some of the
forms. The forms with that symbol are the most important ones that you
should use. The other ones may not be as necessary until you are bigger,
have more projects, and have paid staff. You can choose when you want
to implement the others, but the starred ones are required by the CBC for
all local NGOs. Bigger organizations should try to use all of the forms in
this manual.
Everyone should notice that other forms are inside () symbols. Those are
documents, but not forms. For example, an employee’s CV is a document
you should have, but not a form that you keep. Therefore, you will not
see blank copies of those documents as you would for the others.
Finally, to provide examples in some of the exercises, I have used an

imaginary local NGO, Save Somaliland Trees. I have showed how they
have set up some of their systems to serve as a model for other
organizations to copy. However, not all of their systems are appropriate
to all other LNGOs, so they should be adapted to fit the needs of your
organization.

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1- FILING AND RECORDKEEPING
The very first step to setting up a solid administrative system is to make a

good filing system. If all of your organizational documents are easy to
find and all are present, then it will be much easier to know what is
happening in your organization. When it comes time to report to your
donors, the information will be much more accessible and ready to
present to them than if your papers are kept in different places.
The following filing system is a standard set up that may suit your office.
It is best to keep the records on your projects separate from your
administrative documents so that they are not confused. Also, it is a good
idea to put a number on the outside of your files so that people can find
and replace them quickly. Big offices may even want to make an index
for their files.
A BASIC FILING SYSTEM
If possible, purchase five new files and some card to make

subfiles inside of them. Use a marker pen to label the files and
their subfiles. In a small office, many of these can be combined
and you can use fewer files if you prefer. In a big office, you may
want separate files for 110, 120, and 130.
100- Administrative Documents- This file will be for all of the

administrative records for your office. It will contain three subfiles:
110- Fixed Assets and Inventory- All of the forms that tell what
inventory and fixed assets you have and where they are will be kept
in this subfile. This may even be subdivided again into Supply
Control Cards, Fixed Asset Register, etc.
120- Vehicle- If you have a vehicle, then all of its documents will
be kept here.
130- Payroll and Personnel- All of the documents that you have
relating to the employees of your organization will be kept in this
subfile. It may also be subdivided into sections like CVs, Time
Sheets, etc.
200- Finance- The finance file will contain all of the financial documents
that you have. See page 17 of the CBC Finance Manual for more
information on setting up this file. These files should be kept locked up so
that they cannot be altered.
210- Budget
220- Procurement
230- Cash Management
240- Cash Advances
250- Petty Cash
260- Financial Reports
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270- Bank Accounts
280- Financial Audits
290- Financial Monitoring
300- Correspondence- All letters that you send and receive should be
kept together. Some organizations file outgoing letters separate from
incoming, arranged by their date. Others separate the correspondence by
whom the letter is to or from, arranged in alphabetical order by
organization. Choose the system that you prefer.
310- Local Correspondence- All letters to and from the
government ministries, local government, municipality, other
LNGOs, etc. should be kept here in chronological order (or by
organization, if you prefer).
320- International Correspondence- All letters to and from
international NGOs, UN agencies, contacts abroad, etc. should be
kept here in chronological order (or by organization, if you prefer).
400- Organizational Documents
410- Meeting Minutes- All of the minutes of organizational
meetings should be kept in this subfile. If your organization has
several groups that meet, such as a Board of Directors,
Management Team, and/or Executive Committee, then this subfile
should be divided into those groups. Inside each subfile, keep the
minutes in chronological order.
420- Other Documents- Other important documents related to
your organization, such as your registration papers with the Ministry
of Planning, should be kept here. You could also file your old
organizational structure charts here whenever you make a new one,
or articles about your organization that appeared in the newspaper,
in this subfile.
500- Project Documents
510- Project Proposals- Copies of proposals that you have already
submitted to donors can be useful even if they are not funded. The
background research and even budget items can help you with
another proposal later on. You should file a copy of all completed
proposals here.
520- Completed Projects- All of the papers related to projects
that you have already completed, including copies of their
proposals, should be kept in one place. This subfile should be
divided into subsections for all of the projects that you have
completed. The projects could be numbered, and all documents
related to that project could have that reference number.
530- Ongoing Projects- This file is the same as the Completed
Projects file, except that these are the current projects. When the
project is finished, move the papers into file 520.
540- Future Projects- Any proposals that you are developing
should be kept together in this file, including correspondence with
the donor about the project and background research that you have
completed. Once the project is funded and you begin work, move
the records into file 530. If it is not funded, then file it in 510.

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Here are some notes to consider when setting up your filing
system:
A) Make sure that files are located in the most logical place. For
example, keep all files in the same shelf or cabinet, or keep all
administrative records in the Administrator’s office and project files with
the Project Managers. Be sure to separate what records are not
actually files, but rather resources. For example, newspapers and
training materials are resources and not files. Keep them separate from
the other files. If you have a lot, you can start a resource center.
B) If your files are overcrowded, then maybe it is time to look at their
contents and throw away irrelevant, duplicate, or unimportant papers.
Another solution is to keep your old files separate from the current
ones. Every January, you can move the new files into the old files and
then restart with empty files for the year. That way, you can find old
information, but it is not crowding the files that you use everyday.
C) If the names of the files do not really show what is inside them, then
check their contents and either rename the file, move the papers that
are not similar and start another file for them, or re-file the papers that
are inside to the correct files.
D) If you do number your files, it is useful to then prepare an index to
hang on the wall or filing cabinet to make finding files faster. You can
also include sub-files in your index. For example, under the
Correspondence File for government, you could list Ministries,
Municipality, and Presidency as sub-files.
E) As long as you are redesigning your filing system, it may be a good
time to look your record-keeping system and decide if you should be
keeping more records. See the sections on material resource
management and human resource management for information about
the records that you should be keeping. If so, you may want to
establish these new files and integrate them into your new system now.
The most important step after improving your filing system is

maintenance. If people continue to file papers using the old
system, all of your hard work will be lost! Be sure to show the
others in your office how the improved system is set up and how
they can help maintain it. Invite the others to give feedback on
the filing system so that you can continue to improve it.
Remember, these are only guidelines for improvements; you may
have other ideas for how to make your own office’s system
better.

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IMPROVING YOUR FILING SYSTEM
Once you have your files set up, you will need to file every single paper
inside them in a way that is easy to find them. There are four main ways
to file:
 By date (Chronological order)
 By topic
 By letters (Alphabetical order)
 By numbers (Numerical order)
Filing by date means that you put documents in order by their date. For
example, October 1, 1998 would go before December 12, 1998.
Documents from 1990 precede those from 1995. When filing by date, first
compare the year of the two documents. If they are from the same year,
then look at their months and put the earlier month first. If they are from
the same month and year, then compare their dates and arrange them
with the older document first.
Some people prefer to put the oldest documents at the back and the
newest in the front. This is also useful and can save time by not having to
look through all of the old documents to find the more recent ones. This is
called reverse chronological order.
Filing by topic (or subject) is when you group documents by their

content. For example, all of the correspondence is grouped together in
one file and the financial receipts are placed in another file. The items in
the file can also be filed in another order. For example, the
correspondence could be put in chronological order and the receipts in
numerical order.
Filing in alphabetical order means putting items in order by the first

letter of their name. The documents starting with A go first, followed by
those starting with B, and so on until Z. If two documents start with the
same letter, then look at the second letter. For example, when filing
procurement and policies compare the first letter (both p), and then the
second letter (r or o). Since o is before r, file policies before procurement.
If the second letter is the same, then compare the third letters, and so on.
Filing by number is filing documents or files by their number. It means

putting the low numbers before the high numbers. These numbers could
be reference numbers on documents, or numbers of files. Remember to
look at all of the digits in a number. Although it is easy to see that 4
comes before 8, check carefully when filing 12.08 and 12.1. First compare
the numbers on the left of the decimal point, and then look at the
numbers after it from left to right (12.08 should be before 12.1).
REMEMBER: It is possible to use more than one form of filing. For example, the
files could be divided by topic (correspondence, projects, administration, etc.)
7 page
and by date (new financial documents behind the old ones in reverse
chronological order). Look at the needs of your own files before you decide how
to arrange them. Filing takes time, but it will save more time once you have
established a good system. It is not always necessary to arrange every single
document, but it does save time if you are managing a lot of documents.
Now that you have established a filing system, let’s start to fill the
administrative files with the correct records for managing an office and
projects. The Administration Department must manage three types of
resources: financial, material, and human. The CBC Finance Manual
explains how to manage finances and what forms you will need, and this
manual will cover how to manage the other two, material and human.

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2- MATERIAL RESOURCE MANAGEMENT
Material resources are things that are used in doing your work, such as
typewriters, pens, vehicles, books, wheelbarrows, etc. An Administrator
must manage them so that they do not get destroyed, stolen, or misused.
However, since not all material resources have the same value or will last
the same length of time, you do not manage them all the same way. We
manage them using three different systems.
The forms needed for material resource

management are:
 Receiving Report *1
 (Fixed Asset Acquisition Supporting
Documentation)
 Fixed Asset Register *
 Supply Control Card
 Small Non-Expendable Supplies
Register
 Supplies Request Form
 Vehicle Logbook * (if you have a
vehicle)
 Vehicle Control Board
DEFINITIONS OF DIFFERENT MATERIAL RESOURCES:

 Fixed assets- items that have a long life (more than 5
years) and real financial value (worth more than $50) such as
furniture, computers, and vehicles.
 Non-expendable supplies- items that have a long life
(more than 5 years) but no significant financial value (worth less
than $50), such as a dustbin, stapler, hole punch, or curtains.
 Expendable supplies- items that are thrown away after they
are used such as tape, pens, paper, staples, or markers. They do
not have a long life or real financial value.
Note: The non-expendable and expendable supplies together are
called inventory.
THE PEOPLE RESPONSIBLE FOR INVENTORY AND FIXED ASSET

MANAGEMENT ARE:
 Procurement Officer- oversees the procurement of the
supplies (See pages 9-10 of the CBC Finance Manual for more
information about this job.)
1
Remember that forms with the * symbol are those required for all organizations, no
matter what size. The small organizations may want to use only the forms with the *
symbol when they are just starting up.
9 page
 Storekeeper- stores the inventory in a locked cupboard,
maintains the fixed asset and inventory register and Supply
Control Cards, and issues supplies
 Administrator- completes the Receiving Report when
supplies are received, approves requests for expendable
supplies, and counts the inventory every month, the non-
expendable supplies quarterly, and the fixed assets every six
months.
 Executive Director- approves requests for non-expendable
supplies
Note: These responsibilities are not full-time jobs. The

Storekeeper can also be a Project Manager or the Cashier, for
example. However, the Procurement Officer and the Storekeeper
may not be either the Administrator or the Executive Director.
Since the fixed assets, non-expendable, and expendable supplies are all
managed in different ways, let’s look at them one by one.

10 page
2.1- FIXED ASSET MANAGEMENT
Fixed assets must be managed very carefully since they are the most
valuable resources that the organization has. These are the basic
procedures for managing basic fixed assets, but you may want to develop
special guidelines for special equipment that you have, such as a video
camera.
RECEIVING A FIXED ASSET:

1. The Administrator has already followed the correct procurement
process for purchasing the fixed asset. The fixed asset arrives in the
office.
2. The Administrator completes a Receiving Report and the Executive
Director approves it.
3. The Administrator collects all documents that came with the asset
(called Fixed Asset Acquisition Supporting Documentation) and
files them in the fixed asset file. Acquisition means receiving or
getting.
4. The Administrator checks to see if the item already has a serial number
on it. This is the number that the factory gives the item. It will be the
only item that the company makes with this number, so it is used as an
identification number. If there is no serial number, then the
Administrator should give it an organizational serial number. This
number should be written with a permanent marker pen on the asset
(usually on the back or underneath).
5. The Administrator adds this item to the Fixed Asset Register. The
Fixed Asset Register tells when the last physical count was, and when
the register was updated. Then it gives a description of the fixed
asset, records the make, model, serial number, budget category,
purchase price, date of purchase or receipt, location (such as
Administrator’s office), and how/when you disposed of (threw away) it.
The Fixed Asset Register is kept in the Fixed Asset subfile of the Fixed
Asset and Inventory file.
6. The Administrator gives the fixed asset to the person who will be
responsible for using it.
MAINTAINING FIXED ASSETS:

1. The fixed assets must be used with care since they are valuable. Some
organizations develop specific policies for some of their fixed assets
that describe who can use them, when, for how long, and if there is any
charge for doing so.
2. The Administrator should count all fixed assets every six months and
be sure that the Fixed Asset Register is up-to-date. Sometimes fixed
assets are moved from one place to another, or their condition
changes. The Administrator should note all of these things.
DISPOSING OF FIXED ASSETS:

11 page
1. Sometimes a fixed asset will become so badly damaged that it is no
longer usable. Or, some fixed assets become so out of date that the
LNGO wants to donate them to someone else and buy a replacement.
When any fixed asset is removed from the office (disposed), the
Administrator must record it on the Fixed Asset Register.
2. The Administrator must state the date of the disposal, and the
condition of the fixed asset when it was disposed. The Administrator
disposes of the fixed asset.
3. The Administrator may then remove all Fixed Asset Acquisition
Supporting Documentation related to the fixed asset from the file.
MAKING YOUR OWN SERIAL NUMBERS:

1. Choose a letter for the item. For example, chairs will be letter A, and
tables/desks will be B.
2. Number each item with the letter, and then a different number. So, if
you have 10 chairs, they will be A1, A2, A3, … up to A10. Your desks
and tables will be B1, B2, B3, etc.
3. Write the serial number on the item in permanent marker pen. Record
your serial numbers in the Fixed Asset Register.

12 page
SUMMARY OF THE FIXED ASSET FORMS
Receiving Report*- The Receiving Report tells what items (fixed assets,
non-expendable, or expendable supplies) have come into the office. A
Receiving Report is completed after purchasing something or after
receiving an in-kind contribution. Contributions must be managed the
same way that things you buy are. Someone who is not the Procurement
Officer and not the Storekeeper should complete the Receiving Report.
Across the top, the vendor (or donor) and date are recorded. Then for
each item received, write what it was, how many there are, what the unit
price was, what the total price was, and any remarks.
 Received by: Anyone except the Procurement Officer or the
Storekeeper
 Approved by: The Executive Director
(Fixed Asset Acquisition Supporting Documentation)- Whenever the

organization receives (acquires) a fixed asset, there are supporting
documents. These include receipts, letters from donors confirming their
donation, information about the warranty or guarantee, or mailing
documents. These papers are important and must be kept together in the
Fixed Assets file. (Note: Fixed Asset Acquisition Supporting
Documentation is not a form, but rather papers that the company that
made the asset gives you.)
Fixed Assets Register (FAR)*- The FAR lists all fixed assets that the
organization has. The register includes a specific description of each item
(this should include the color, size, and what it is made from, e.g., small
wooden table); its make and model; its serial number (which must be
written on the item by the Administrator if it does not already have one);
the budget category from which it was purchased; its cost; the date of
receipt or purchase; and its location in the office. When the asset is
disposed of (thrown away), complete the last part which tells the condition
of the asset when it was disposed of, the date it was disposed of, and
remarks (who it was given to, or if it was thrown away). It also records the
date of the last physical count and the date of the register. The
Administrator should keep one Fixed Asset Register for each location
where the organization has fixed assets, such as the office and the
workshop.
 Prepared by: The Administrator
Made in China?
The make of an asset is the company that makes it. Some makes for
computers, for example, are Compaq, Hewlett Packard, IBM, etc. The
make is almost always written on the asset. The make is not a country,
such as Japan, Italy, etc.
The model of an asset is either a number, letter, or numbers and letters
telling what type of item it is. For example, some printers are model
13 page
numbers LJ1100A, DJ420, etc. The model should be written on the asset
itself, often just after the make.

14 page
SAVE SOMALILAND TREES
Working together to strengthen the natural environment of Somaliland
RECEIVING REPORT
Name of Vendor or Donor:

_____________________________________________________
Date:
______________________________________________________________________
Item Quantity Unit Total Remarks

Price Amount
Was the bill checked against the purchase order and receiving report?
Yes
No
Received by: Approved by:
Name: ___________________________ Name: ___________________________

15 page
Signature: ________________________
Signature: ________________________
Job Title: _________________________

Job Title: _________________________

16 page
FIXED ASSET REGISTER
Date of last physical count: ________________________ Date register was last updated:
___________
Description of the Make/Mo Serial Budget Purcha Date of Locati Disposal of asset
fixed asset del No. Catego se Purchas on Conditi Date Remar
ry Price e/Recei on ks
pt
Prepared by: Approved by:
Name: __________________________________________ Name: ________________________________

17 page
Signature: _______________________________________ Signature: ______________________________
Job Title: ________________________________________ Job Title: _______________________________

18 page
2.2- INVENTORY MANAGEMENT
Inventory includes both non-expendable supplies and expendable

supplies, but the procedure for managing them is different. However, it is
still important to have a good inventory system because inventories can
run out unexpectedly, get damaged, and they can disappear. There are
three main reasons for recording an NGO’s inventory: 1) at any time you
can know exactly how many items you have without having to count them
all, 2) you will know when it is time to reorder items, and 3) you can check
to make sure that you are using a reasonable amount of different
supplies.
NON-EXPENDABLE SUPPLIES
RECEIVING NON-EXPENDABLE SUPPLIES:
process for purchasing the non-expendable supply. It arrives in the
office.
3. The Administrator then adds this item to the Non-Expendable
Supplies Register. The Non-Expendable Supplies Register records
the make, model, location, date of receipt, quantity, and how/when you
got rid of the item. The Non-Expendable Supplies Register is kept in
the Inventory subfile of the Fixed Asset and Inventory file.
4. The Administrator gives the items to the Storekeeper, who puts them
into the office store. The Storekeeper must not be the Administrator.
The office store must be a secure place with a strong lock. The
Storekeeper must have the only key to the store.
MAINTAINING NON-EXPENDABLE SUPPLIES:

1. The Administrator must count the non-expendable supplies in the store
and in the office every three months and check that they match the
records in the Non-Expendable Supplies Register.
2. When someone needs to use one of the non-expendable supplies that
is in the store, he or she must complete a Supply Request Form
(SRF). The Supply Request Form tells who wants what supply.
3. The Executive Director approves the Supply Request Form if the person
requesting the supply needs it for his or her work, and if the supply is
part of his or her project. If the supply is not paid for by the project
that that person is working on, then the Executive Director should only
approve the request in special cases.
4. The person who needs the supply gives the approved Supply Request
Form to the Storekeeper. The Storekeeper may only give supplies to
the people who have a completed, approved Supply Request Form.
After the Storekeeper gives the supply to the person who requests it,
the receiver signs the Supply Request Form.
5. The Storekeeper gives the completed Supply Request Form to the
Administrator.
19 page
6. The Administrator updates the Non-Expendable Supplies Register and
files the SRF in the Inventory file.
DISPOSING OF NON-EXPENDABLE SUPPLIES:

1. Sometimes a non-expendable supply will become so badly damaged
that it is no longer usable. Or, some non-expendable supplies become
so out of date that the LNGO wants to donate them to someone else.
When any non-expendable supply is removed from the office (disposed
of), the Administrator must record it on the Non-Expendable Supplies
Register.
2. The Administrator must state the date of the disposal and the condition
of the non-expendable supply when it was disposed.
3. The Administrator disposes of the non-expendable supply.

20 page
EXPENDABLE SUPPLIES
RECEIVING EXPENDABLE SUPPLIES:
process for purchasing the expendable supply. The expendable supply
arrives in the office.
3. The Administrator then adds this item to the Supply Control Card.
The Supply Control Card is like a register for each supply. It records
the item and when it is received and distributed. The Supply Control
Cards are kept in the Inventory subfile of the Fixed Asset and Inventory
file. The amount recorded on the SCC should always match what is in
the store.
4. The Administrator gives the items to the Storekeeper, who puts them
into the office store.
MAINTAINING EXPENDABLE SUPPLIES:

1. The Administrator must count the expendable supplies in the store (not
those already in use in the office) every month and check that they
match the records on the Supply Control Cards.
2. When someone needs to use one of the expendable supplies that is in
the store, he or she must complete a Supply Request Form
3. The Administrator approves the Supply Request Form if the supply is
needed for his or her work, and if the supply is part of his or her
project. Since the expendable supplies are much less valuable, the
Administrator (instead of the Executive Director) may approve requests
for them.
4. The person who needs the supply gives the approved Supply Request
Form to the Storekeeper. The Storekeeper may only give supplies to
the people who have a completed, approved Supply Request Form.
After the Storekeeper gives the supply to the person who requests it,
the receiver signs the Supply Request Form.
5. The Storekeeper gives the completed Supply Request Form to the
Administrator.
6. The Administrator updates the Supply Control Card.
DISPOSING OF NON-EXPENDABLE SUPPLIES:

Since expendable supplies are meant to be thrown away after they are
finished, the person who has the supply may throw it away (dispose) at
any time without having to record it like fixed assets or non-expendable
supplies.

21 page
OVERVIEW OF FIXED ASSET AND INVENTORY
MANAGEMENT
What What records? Where? Who? When?

happens?
Supplies arrive in
the office
Check the Purchase  Receiving Report Procureme Administrator When the
Order and count Fixed Asset nt File supplies
supplies to be sure Acquisition arrive
they match Supporting
Documentation
(for fixed assets
only)
Put supplies in a  Fixed Asset Fixed Storekeeper After
locked cupboard or Register for fixed Asset and Receiving
store assets Inventory Report is
 Non-Expendable File completed
Supplies Register
for non-expendable
supplies
 SCC for
expendable
supplies
The person needing  Supply Request File for  Person When
a supply requests it Form blank SRFs requesting supplies are
and file for supply to fill needed
completed out form
SRFs  Authorized
by
Administrator
for
expendable
supplies
 Authorized
by ED for non-
expendable
supplies
The storekeeper  SCC for Fixed Storekeeper When
receives the SRF expendable Asset and Storekeeper
and issues the supplies Inventory receives an
supplies Inventory Register File approved
for non-expendable SRF
supplies
 Fixed Asset
Register for fixed
assets
Physical count of Fixed Asset Fixed Administrator Every six
fixed assets Register Asset and months
Inventory (January and
File July)
Physical count of Inventory Register Fixed Administrator Every three
non-expendable Asset and months
supplies (new and Inventory
being used) File

22 page
Physical count of Supply Control Fixed Administrator Monthly
expendable Cards Asset and
supplies (only those Inventory
not being used and File
in the store)

23 page
SUMMARY OF THE INVENTORY FORMS
Receiving Report*- See previous section.
Non-Expendable Supplies Register (NESR)- The NESR works like the

Fixed Asset Register. It is a ledger that shows what non-expendable
supplies the organization has (including their descriptions), the make and
model of each supply, what budget category it was purchased under, the
date it was purchased (or donated), and where it is located (in the office
or the store). When the supplies are disposed of, the NESR tells the
condition of the item when it was disposed of, the date, and remarks (who
it was given to). In addition, the date of the last physical count and the
date of the register are included to be sure that the NESR is kept up-to-
date. Separate NESRs must be kept for each of the different locations
where the organization has non-expendable supplies such as the
workshop, office, etc.
 Prepared by: The Administrator
Supply Request Form- Whenever someone needs a supply from the

store, s/he must fill out an SRF. The SRFs are kept in the Fixed Asset and
Inventory file. The person requesting a supply must put his or her name
and the date, and then state the item and number needed, as well as the
project for which it will be used. The remarks column is used if there are
specific instructions, such as the exact size or color needed. The person
requesting the supply completes and signs the form, and then the
Executive Director approves it if it is for a non-expendable supply. If it is
an expendable supply, then the Administrator may approve it. After the
Storekeeper gives the item to the person who requested it, that person
must also sign to say s/he received it.
 Requested by: The person who wants the supply
 Approved by: The Executive Director (for non-expendable
Supplies)
 Approved by: The Administrator (for expendable supplies)
 Received by: The person who receives the supply from the
Storekeeper
Supply Control Cards- Each expendable supply that is received in the

office must first be recorded in the Receiving Report, and then on a
Supply Control Card. One SCC is kept for each supply. It works like a
ledger to keep records of how many of each supply is in storage. On the
top of the card the supply’s name and description (color, size, make, etc.)
is recorded. Then, each time that supply is received or issued the SCC
must be updated. The date, person taking (or reason for receiving),
number of the item coming in or out, balance of supplies remaining, and
signature of the person issuing the supply must be completed. The
balance should always show exactly how many of that supply the
organization has, so the Administrator can check the level of supplies
24 page
easily. When the page is filled, a new sheet replaces it and starts with the
balance forward from the last line of the previous sheet, like the
cashbook. The Administrator keeps the Supply Control Card.
No Record of My Pen?
You should only keep records of expendable supplies that are not yet
being used that are in the storeroom. That means that no, there is no
record of the pen that you are using now. However, you should keep
records of all non-expendable supplies, whether or not they are being
used.

25 page
NON-EXPENDABLE SUPPLIES REGISTER
Date of last physical count: ________________________ Date register was last updated:
___________
Description of the supply Make/Mod Budget Purcha Date of Locati Disposal of asset
el Catego se Purchas on Conditi Date Remar
ry Price e/Receip on ks
t
Name: ______________________________ Name: ____________________________________

26 page
Signature: ___________________________ Signature: __________________________________
Job Title: ____________________________ Job Title: ___________________________________

27 page
SUPPLY REQUEST FORM
Employee’s Name:
____________________________________________________________
Date: _________________________________
Item Quantity Project Name Remarks
Requested by: Approved by:
Name: _________________________ Name: ________________________
Signature: ______________________ Signature: ______________________
Date: __________________________ Date: __________________________
Received by:
Name: _________________________
Signature: ______________________
Job Title: _______________________

28 page
SUPPLY CONTROL CARD
Name of the supply: _____________________________________________________
Date Description Amt Amt Balance Issued

In Out By

29 page

30 page
2.3- VEHICLE MANAGEMENT
A vehicle will probably be the most expensive fixed asset that your
organization has. Therefore, it must be managed in a very careful way. It
needs to be available for all work needs, but then often staff members or
organizational members may want to use it for other purposes. Each
organization will choose to manage its vehicle in a different way, but the
main point is to decide who will be driving the vehicle. To keep a vehicle
in good condition, it needs to be driven carefully and responsibly by
someone who is familiar with it.
The entire organization should be involved in making the organizational

vehicle policy, as the more people who agree with what it says, the less
chance there is of conflict later on. However, the following points are
standard for most all organizations:
1. The Administrator should be in charge of coordinating the use of the

vehicle. The Administrator should work closely with the Driver to know
how the vehicle is being used.
2. When the vehicle is being used, the Driver will keep a Vehicle
Logbook. The Vehicle Logbook is a record of where the vehicle went,
how long it took, what the distance was, and how much fuel was put
into it. The passenger must sign the Vehicle Logbook after each trip.
This includes all personal use of the vehicle.
3. When a person wants to use the vehicle, he should tell the
Administrator the time that he wants the car, where he wants to go,
and how long the trip will take. People should not ask the Driver
directly to take them somewhere. The Administrator will decide if the
vehicle should wait with the person or return to the office between
dropping off and picking up the person.
4. The Driver must record anytime that he puts fuel or oil into the vehicle,
and how much, into the Vehicle Logbook.
5. The Administrator will put the information on the Vehicle Control
Board. The Vehicle Control Board is used to record where the vehicle
is, how long it will stay there, and who is with it. It is begun new again
each day.
6. The Administrator should check the Vehicle Logbook at least every
week to make sure that the readings are correct and the fuel usage
matches the requests for fuel. If they agree, the Administrator should
sign in the column for Vehicle Checked.
7. In general, as few different people as possible should drive the vehicle.
For more specific points about making a vehicle policy, see the section on
“Writing a Vehicle Policy.”

31 page
SUMMARY OF THE VEHICLE MANAGEMENT FORMS
Vehicle Logbook- Either the passenger or the driver completes the

logbook, stating the date, destination, time in, time out, and starting and
ending odometer reading (the seven-digit reading). The passenger signs
that the information is complete at the end of the trip. The driver must
also record the amount of oil and fuel he put in the car. Every sheet of
the logbook must also show the current month, year, and the vehicle’s
identification (license plate) number. A logbook does not have to be a
form; it can be a notebook that is divided into these columns. That way, it
is not necessary to change the paper each time it fills up.
 Passenger signature: The passenger
 Vehicle checked: The Administrator
Vehicle Control Board (VCB)- The Administrator writes on the Vehicle

Control Board the vehicle’s destination, time out, time expected back, and
passenger name(s). The Administrator should always record trips to the
fuel station and other small trips so that the staff members know where
the car is and what it is doing. It is best if the VCB is a chalkboard or a
white board so that it can be cleaned at the end of every day and reused
the next day.
What about those old Vehicle Logbooks?

Old Vehicle Logbooks may seem useless, but they can be very useful
when writing project proposals that involve vehicle usage. They can tell
you how much it costs to run the car, what percentage of your costs are
for project use and what percentage is for overheads. Use them to
document your fuel expenses.

32 page
VEHICLE LOGBOOK
Vehicle Number: ________________________ Month: ______________________________
Date Destination Time Startin Time Ending Total Passen Fuel Oil Vehicle
Out g Km In Km Km ger Checke
Signat d
ure
CBC Administrative Manual, page 33


VEHICLE CONTROL BOARD
Destination Time Time Passenge

Out Expected r(s)


3- HUMAN RESOURCE MANAGEMENT
The most difficult resource to manage is human resources, or people. No

manual can tell you how to interact well with people, or how to build
successful relations with your colleagues. What this section of the manual
tries to do is to help you keep the correct documents on your employees.
The better documented your employees are, the less chance there is for
conflict later on. However, there are three handouts on management to
help develop the basic skills of your managers and leaders in volume one,
which covers organizational development.
This section divides human resource management into two subsections,

payroll (paying the employees) and personnel (records about the staff
themselves).
The forms needed for Human

Resource Management are:
 (Employee CV)
 Employment Contract*
 Time Sheet
 Leave Approval Form
 Payroll Register*
 Personnel Action Form
 Job Description*
 Performance Appraisal
 Benefits Form
 (Responsibility Turnover Letter)
PAYROLL:
1. Before you hire an employee, you should have a copy of his or her CV
or resume. This outlines all previous work experience and educational
background. For more information about how to hire an employee,
read the section on “Guidelines for Making a Human Resource Policy.”
2. As soon as you hire the person, you should sign a contract of
agreement between the NGO and the employee. Even if the person is
a volunteer, she can still have a contract. The Executive Director
should sign on behalf of the NGO.
3. Every day that an employee is present, the Administrator should mark
him present on the Time Sheet. At the end of the month, the
employee signs the time sheet to say that what the Administrator
recorded was correct. If the employee was at a workshop related to his
job, then the Administrator should note that. Likewise, if the employee
is absent, sick or on leave, that should also be recorded.
4. If an employee wants to take leave, then she should fill in a Leave
Approval Form. Since there are different types of leave, the
employee must say what kind of leave she wants, when it will begin,

when it will end, and the total days of leave requested. All leaves
except for emergency sick leave must be approved before taking it.
5. The Executive Director must always check to see how much leave time
an employee has left before approving the leave. The Accountant
should check leave records against the Time Sheet before paying
salaries.
6. Each employee should also keep a copy of his or her leave records.
7. At the end of the month, the Administrator should submit the Time
Sheet to the Accountant to prepare an invoice to pay the salaries of the
staff.
8. After receiving the Time Sheet at the end of the month, the Accountant
should prepare the Payroll Register. The Payroll Register is a chart
that shows how much each employee will receive when salaries are
paid. Most employees will receive their normal salary, but sometimes
people take a salary advance, so that must be deducted from the
salary before it is paid.
9. When the salaries are paid, they must be paid directly by the Cashier
to the person who has earned the money. When employees receive
their salary, they must sign the Payroll Register.
10. If there are any changes made to a salary (such as a promotion or a
dismissal), then they must be supported with another form. That is the
Personnel Action Form (PAF). The PAF describes the change and
contains the signature of the Executive Director.
11. When the Payroll Register is being prepared, it must be supported
by real attendance records of the employees for the whole month, by
Leave Approval Forms for any employee who took leave, and by
Personnel Action Forms for any employee whose salary changed for
any reason. These documents should be stapled to the back of the
Payroll Register.
PERSONNEL:
1. The first record you should have for every single employee or volunteer
is a Job Description. The Administrator does not necessarily make
the Job Description, but the Administrator must have a copy of
everyone’s Job Description. Often the supervisor and the employee
make them jointly. The employee should also have a copy. Without a
Job Description, it is much harder to manage staff.
2. At least once a year, the Executive Director should conduct
Performance Appraisals (staff evaluations) of all staff members.
This is to both encourage the good employees as well as to help those
who are not fulfilling all of their responsibilities.
3. If an employee wishes to leave or is dismissed from the organization,
then he should complete a Benefits Claim Form. This form is very
important, as it is an agreement from the employee stating that he has
received all of his benefits from the organization. Benefits are often a
source of conflict; often ex-employees return to their employers
demanding their last paycheck or other benefits they believe they are
owed.
4. When leaving the organization, the employee should prepare a letter to
his or her replacement called a Responsibility Turnover Letter.
This letter outlines what work has been done up to that point, and
more importantly, what work is remaining to be done. The letter can
include advice about people who can help, and information on
procedures that need to be followed. Its purpose is to make it easier
for a new person starting in this job to know what to do, and how. Both
the old and the new employees should sign this letter.

SUMMARY OF THE HUMAN RESOURCE MANAGEMENT
FORMS
Payroll-
(Employee Curriculum Vitae)- Every employee should prepare a list of
his previous jobs (voluntary as well as paid), specifying his responsibilities,
when he had the job, who the employer was, where he was working, and
his job title. The CV should also include a list of the training the employee
has received, including formal education.
Employment Contract- A contract is a legal document stating that the

organization agrees to employ and pay the employee to do the tasks that
are outlined in the job description. A contract includes the period of time
the employee is hired, the salary, working hours, and the job title. If the
conditions of the person’s employment are different from those in the
personnel policy, then they should be stated in the contract.
 Signed by: The employee and the Executive Director (on
behalf of the NGO)
Time sheet- The Time Sheet includes the month and year, the
employees’ names, and each day of the month. At the end of the month,
the employees sign to say that they were present as shown on the time
sheet. It is prepared by the Administrator daily and approved by the
Executive Director at the end of the month.
 Prepared by: Administrator
 Approved by: Executive Director
Leave Approval Form- Completed by the employee, it includes the

employee’s name and the types of leave allowed according to the
Personnel Policy. Under each type of leave, the total amount of leave
allowed per year is written. For each type of leave, it records the dates of
leave requested, the dates approved by the Executive Director, and the
days remaining.
 Dates Requested: The employee fills in the dates that s/he
would like as leave
 Dates Approved: The Executive Director writes the days that
are approved and signs his or her name
 Dates Remaining: The Executive Director calculates how many
days are remaining for that type of leave
Payroll Register- The Payroll Register shows the month and year, the
employees’ names, job titles, monthly salaries (minus advances already
paid), balances due, and signatures of each employee. The Administrator
prepares it and the Executive Director approves it.

Personnel Action Form (PAF)- Used to show when an employee
changes jobs, the PAF shows the employee’s name, the date, current and
new job title, and new and current salary, and reason for change. It shows
if the employee is newly hired, promoted, or terminated. The
Administrator prepares it and the Executive Director approves it.
Personnel-
Job Description- The Job Description is a list of the tasks that the
employee must complete as part of his or her job. The job description
includes the job title, the person the employee answers to, and the
working hours. The people the employee must supervise and the work
that the employee must do are included under responsibilities.
Sometimes a Project Manager will develop the Job Description when
designing a project, and sometimes the employee and supervisor write it
together.
Performance Appraisal/Staff Evaluation- Staff evaluations are

completed once a year. The purpose is to improve the quality of work
from the organization by both assessing the work of the employee, and by
getting feedback on the management of the organization. Normally, a
staff evaluation includes the employee’s name and job title. In addition, it
often asks standard questions about how the employee is completing
his/her duties, and then contains a part for a narrative report of the
employee’s performance, support that the employee receives, and other
related issues. The evaluator completes it, signs it, and dates it. After the
evaluation is complete, the employee reads it and is allowed to respond to
the evaluation by writing his comments below. Sometimes additional
comments are then added.
 Evaluated by: Executive Director (or whoever did the
evaluation)
 Employee’s Signature: The employee signs to say that s/he
has seen the evaluation
Benefits Form- includes the name of the employee who is going to quit,
the date, the reason for quitting, comments (if necessary), agreement
from the employee that s/he is not owed anything from the organization,
and signatures from the employee and the employer (represented by the
Executive Director).
 Employee’s Signature: Employee who is leaving the
organization
 Employer’s Signature: Executive Director
(Responsibilities Turnover Letter)- The turnover of responsibility from

the departing employee to the employee who will take over is
documented in this letter. It should have the signatures of both
employees and the date of the official turnover.

Why so many forms?
Why is it that fixed assets and inventory only need a few forms, but
human resource management requires so many forms? The answer is
simple: fixed assets don’t talk to us! We need to manage people
carefully, and one of the best ways to prevent conflicts is to document
everything. For example, if you have clear job descriptions, there will be
less argument about whose job is what.

EMPLOYMENT CONTRACT
This is a legally binding contract between Save Somaliland Trees (SST)

and (employee’s name), employee of SST.
Part I: Terms of the contract

(Employee’s name) agrees to work as a (job title) for Save Somaliland
Trees and complete all tasks included in the related job description under
the terms of this contract beginning (date contract begins).
Part II: Employment conditions

(Employee’s name) will work in accordance with the Save Somaliland
Trees Personnel Policy in regards to: working hours, leave, discipline
procedures, benefits, termination of employment, and other related
issues.
Part III: Employer’s obligations

The employer, Save Somaliland Trees, will pay the employee, (Employee’s
name) the amount of (amount of salary in figures and in words) every
month. The salary will be paid on the last working day of every month.
This agreement has been signed by both parties:
Employee’s Signature: On behalf of Save Somaliland

Trees:
Name: ________________________ Name: __________________________
Signature: ______________________ Signature: ________________________
Date: _________________________ Date: ___________________________

TIME SHEET
Month: ______________________________________ Year: ________________________________
Employee’s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Employee’s
Name: Signature
Key:
S = Sick
T = Training
AL = Annual leave
Name: ________________________________ Name: ___________________________
Signature: _____________________________ Signature: _________________________
Job Title: _____________________________ Job Title: _________________________


LEAVE APPROVAL FORM
Employee’s Name:
____________________________________________________________
Annual Leave:
Amount allowed per year:
______________________________________________________
Dates Requested: Dates Approved: Days

Remaining:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Sick Leave:
______________________________________________________

Remaining:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Maternity Leave:
______________________________________________________

Remaining:
___________________________________________________________________________
___________________________________________________________________________
Other Leave:


______________________________________________________
Type of Leave: Dates Requested: Dates Approved:

Days Remaining:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

PAYROLL REGISTER
Month: _____________________________________________ Year: ______________________________________
Employee’s Name Job Title Gross Pay - Advances Net Pay Employee’s
Signature
TOTAL
Name: ________________________________ Name: ________________________________
Signature: _____________________________ Signature:

_____________________________
Job Title: _____________________________ Job Title: _____________________________


PERSONNEL ACTION FORM
Employee’s Name:
____________________________________________________________
Date:
______________________________________________________________________
New Position:
_______________________________________________________________
Old Position:
________________________________________________________________
Salary: New: _____________________
Old: ______________________
Reason for change:

___________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Status: Newly hired

Promoted
Terminated
Name: ___________________________ Name: _____________________________
Signature: _________________________ Signature:

___________________________
Job Title: __________________________

Job Title: ____________________________

JOB DESCRIPTION
Job Title:
Reports To:
Working Hours:
Responsibilities:

PERFORMANCE APPRAISAL/STAFF EVALUATION
Employee’s Name: _______________________________________
Job Title: _______________________________________________
Goo Fair Poo

d r
1. The employee is motivated working here.
2. The employee is prepared and organized for
work.
3. The employee has the skills needed to do his/her
job.
4. The employee is open to ideas from other
workers.
5. The employee is available when needed.
6. The employee has good ideas for the office.
Other comments or notes about the employee:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Evaluated by:
Name: ______________________________
Signature: ___________________________
Job Title: ____________________________
Date: _______________________________
Employee’s comments or notes about the evaluation:
_____________________________________________________________________
_____________________________________________________________________

_____________________________________________________________________
_____________________________________________________________________
Employee’s signature: _____________________________ Date:

________________

BENEFITS CLAIM FORM
Employee’s Name:
____________________________________________________________
Position: ______-
_____________________________________________________________
Years Employed:
_____________________________________________________________
Reason for Leaving:

___________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Comments:
________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
I hereby declare that I have received all benefits that I am entitled to from
this organization.
Employee’s Signature: ____________________
Date: _________________________________
Employer’s Signature: ____________________
Date: _________________________________

4- OFFICE MANAGEMENT
Having a good office management and reception systems is important

because they are the most visible of all of your administrative systems.
People who visit your office will make an impression of you and your
organization based largely on what they see. If your office is well
managed, then you will make people think that you are a well-run
organization.
As important as office management is, it is not normally covered in a

policy. Therefore, this section of the manual discusses some ideas for
managing your office well and making the most of your activities. It is
divided into two parts, managing the office in relation to people from
outside (external) and in relation to the people who work inside it
(internal).
The forms needed for office

management are:
 Appointment Book
 Visitor’s Book
 Telephone Message Forms
EXTERNAL OFFICE MANAGEMENT

People outside the organization communicate with your organization in
three main ways:
1. Visiting the office
2. Telephoning the office
3. Sending or receiving letters to or from the office
VISITING:
The following ideas will make it better for outsiders to come and visit your
organization:
 Install the signboard outside so visitors will know where the
organization is.
 Make a sign showing where the main door is if it is not clear.
 Label all of the offices so visitors can find the office they want
quickly.
 Set up a reception area with at least two chairs and a small table
with your brochure, organizational profile, and/or annual report
where visitors can wait for the person they need to see.
 Keep an Appointment Book that shows when visitors are
expected.
 Design the boards (vehicle control board, meeting board, etc.) so
that they make the office look more attractive and active.

 Hang a display board showing your organization’s current activities.
This should include photos (with captions) of your projects,
workshops you have attended, and visitors to your office.
 Display your organizational structure chart, mission statement, and
strategic plan if you have developed them.
When visitors arrive, do the following to make their visit as productive as

possible:
 Request that they make an appointment in advance so that the
necessary people are available to meet with them.
 Have background information available to either give or show to the
visitor, such as an organizational profile, the structure chart, annual
report, and a list of your completed projects.
 Ask that the visitor sign the Visitor’s Book and state his name, job
title, address, telephone/fax number, email address, and
organization.
 Collect any information that the visitor gives you and file it together
for future reference.
 Prepare for an informal office tour and visit to your project sites.
 Follow up the visit with a letter or phone call. This is extremely
important! Some points you could include are: reminding them of
your NGO’s objectives, any follow-up you would like (such as your
submission of a proposal, etc.), and when you hope to meet again.
The following ideas will make it better for outsiders to telephone your
organization:
 Answer the telephone by identifying your organization. Do not say,
“hello” in a quiet, weak voice. An office is a professional place, and
you should speak clearly and identify your office. For example, say,
“Good morning, COSONGO Office,” or “Hello, this is the COSONGO
Office.” If you do not say the name of your organization, an outsider
may think that he has called somebody’s house!
 If the person the caller needs is in the office and is not busy, ask the
caller to wait and call that person to the telephone.
 If the person the caller needs is around, ask the caller his or her
name, and then look for the person. If that person is busy, ask if
s/he wants to speak to the caller. If not, take a message. If the
caller will not give him your name, then tell him that the person he
wants is not available. Usually people who are calling who will not
give their names are not making work-related telephone calls!
 If the person the caller needs is not available, tell him or her that.
Tell the caller your name and your job title, and ask if you can help
with anything. If not, ask the caller to leave a message. Fill out a
Telephone Message Form and include the caller’s name, whom
the message is for, the time and date of the call, the message itself,
the caller’s telephone number, and the name of the person who
took the message.

LETTERS:
The following ideas will make it better for outsiders to receive letters from
your organization:
 Set a standard way to write letters so that they are faster to write.
 Make sure that letters are proofread, and that they include a
reference number and look neat.
There are three main types of letters. In Somaliland, there is often

confusion between the styles. However, here are some international
standards:
1. Memo- internal message, informal (used within the office)
2. Semi-formal (also called semi-block)- personal letter to someone you
know
3. Formal (block style)- cover letter for official correspondence (job
application, report, documents, etc.), people you don’t know, international
correspondence for the organization
Example of Memo style:

MEMO
TO: Project Managers
FROM: Lainie Thomas
DATE: 14/8/99
RE: PM Training next week
This message is just to remind you that we have rescheduled our training
for next Monday morning at 8:00am until noon. I hope that you will all be
able to make it.
(No signature- sometimes handwritten name)
Notes for a memo:

 A memo does not say Dear ____, or Sincerely, _____. It is not signed
because it is informal. Sometimes people put their initials after their
name at the top, or hand-write their names at the bottom.
 Re is an abbreviation for regarding. You can also use Subj., which is an
abbreviation for subject.
 A memo is usually labeled with the word Memo on top, but the other
types are not labeled.
Example of Semi-formal style:

14 August
1999
Dear Aideed,

Greetings from Hargeisa. I am writing you about the different styles
of letter writing that I have learned in PM training.
The second paragraph starts like this, indented again on its first line.
There is no empty space between paragraphs, either. I hope that you
understand the difference between this semi-formal style and the formal
letter.
Sincerely,
Lainie
Notes for a semi-formal letter:

 Each new paragraph is indented.
 It is opened with Dear (followed by the person’s first name) and a
comma
 The closing is informal- Sincerely, Regards, Yours truly, or Sincerely
yours
 It is signed by hand only (no typed name or job title underneath)
Example of Formal style:

P.O. Box 683
14 August 1999
253-220006
Mr. Abdulkarim Ahmed Moge

Project Manager, Circus Hargeisa
Hargeisa Voluntary Youth Committee
252-213-4501
Ref: LCT/2.1/120/98
Dear Mr. Moge:
I am writing you to show you the format for a formal style letter. Every
paragraph begins on the left side; it is not indented as with the informal
style.
Then when you write a second paragraph, it must start another line below
where it would in a semi-formal letter, like this. It is also not indented.
Did you notice that I used a colon after your surname?
Yours Sincerely,
Lainie Thomas
Lainie Thomas
Development Adviser
Notes for a formal style letter:

 Instead of typing your address at the top, you can use letterhead
paper. Also, some people place the return address on the left instead
of the right side of the paper.
 The letter is signed below (not beside) the closing and the full name of
the sender, and the job title is typed below the signature.
 In the UK, the closing Yours Sincerely is used for closing letters to
people who you don’t know, and Yours Faithfully is used for closing
letters to people you do know. In the US, Sincerely is the most
common closing.
Addressing the envelope:

Lainie Thomas (post office
postage
PO Box 683 stamp cancellation)
stamp
Mr. Abdulkarim Ahmed Moge

HAVOYOCO
East Africa
Notes for addressing the envelope:

 Put the sender’s address either at the top left-hand corner or on the
top of the back of the envelope (on the flap for closing it).
 Write the addressee’s name and address in the center of the envelope.
Use clear handwriting and a dark pen because many countries use
machines to sort the mail and if it is not clear, it will take longer to
arrive.
 Leave a blank space at the top right hand side of the envelope. This is
where the stamp will go. The post office will put another stamp on top
of it to cancel the stamp you paid for so that it cannot be used again.
 It is unnecessary to put a telephone number on an envelope if it is
being delivered through the postal service. A postal service will never
call that number to deliver it. Also, some people may object to their
telephone number appearing on the envelope for privacy reasons.

INTERNAL OFFICE MANAGEMENT
Within the office, the staff members communicate in the following ways:
1. By having meetings or conversations (informal or formal)
2. By sending memos
3. By giving telephone messages
4. Through office cooperation (people working together as a team)
MEETINGS:
For more successful internal meetings:
 Hang a meeting board in the Administration Office that shows who
is attending which meeting (inside or outside of the office). This
also helps people who want to visit someone in the office. If they
see that the person is in a scheduled meeting, they will know when
to come back.
 Develop a plan for what to do if a meeting is interrupted (by
telephone calls, visitors, etc.)
MEMOS:
For memos inside the office:
 Hang short internal memos on the Administration Office notice
board for everyone to see
 Develop a circulation system for longer memos or letters. One
method is to put everyone’s name on a slip of paper. After a person
reads it, he crosses off his name and passes it to the next person.
 Build mailboxes/pigeon holes for everyone for easier circulation of
messages. Mailboxes can be simple boxes, or more fancy wooden
shelves.
TELEPHONE MESSAGES:
When someone leaves a telephone message:
 After taking the message, consider if it requires action or if it should
just be passed on.
 If the message should be passed on, then it should be written down,
put on the desk or pigeonhole of the person it is for, and then
followed up to make sure that the person received it.
OFFICE DISCIPLINE:
For improving office discipline:
 Speak honestly, friendly and politely to each other.
 Respect each other’s schedules and appointments
 Respect each other.
 Help cover job responsibilities when others are away, with our
regular tasks and work when needed.
 Respect the privacy of others and the organization.
 Solve internal problems professionally and completely.
 Be patient, trusting, and tolerant of each other.
 Share resources.
 Respect others when making jokes.
Although these points do not apply to every single office, your
organization should adapt the ones that will help improve your office
management. Remember, the more friendly and open people are towards
one another, the happier they will be and the better they will work for you.

SUMMARY OF THE OFFICE MANAGEMENT FORMS
Appointment Book- The Appointment Book can be a diary or any other

calendar that is used only to record the appointments that the
organization has. The Administrator or the Secretary, if your
organizational has one, should record all of the appointments and remind
people about them closer to the time that they will be.
Visitor’s Book- The Visitor’s Book can also be a blank book. In it, visitors
should sign their name, organization’s name, address, telephone number,
fax number, email address, and the date of their visit. Some visitors who
have business cards will just give this. The Administrator should put that
into the book instead. The Administrator can also write down later with
whom that person met, and what was discussed. An Administrator with
good computer skills can put the visitor’s information in a database or
spreadsheet so that the organization can keep contact with the visitor.
Telephone Message Forms- Whenever a person calls for someone who

is not in the office, the Administrator (or Secretary, if the office has one)
should write down the person who called, his telephone number, the time
of the call, the date of the call, and the message. The person who took
the message should also sign his name.
 Prepared by: Person who took the message

APPOINTMENT BOOK
Date: _______________________________
Time: Appointment with: Place

8:00-8:30
8:30-9:00
9:00-9:30
9:30-10:00
10:00-10:30
10:30-11:00
11:00-11:30
11:30-12:00
12:00-12:30
12:30-1:00
1:00-1:30
1:30-2:00

VISITORS BOOK
Name Organizatio Address Tel/Fax/Em Date

n ail Visited

TELEPHONE MESSAGE FORM
For: _____________________________________________________________________
Mr./Mrs./Miss ____________________________________________________ called

you
at ________________ AM/PM on _________________________________________

2001.
 Please call back. Telephone number:

______________________________________
 Will call you later.
 Will visit you.
 Left a message for you:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Prepared by:
Name: _____________________________
Signature: __________________________
Job Title: ___________________________

5- ADMINISTRATIVE AUDIT
An internal organizational audit is a complete check of all administrative
systems, except reception. It is similar to a financial audit, which checks
the financial systems of the organization. It is the most important tool in
monitoring and evaluating administrative systems, as it checks to see that
all of the systems are in place and working. The audit should be done at
least twice a year.
There are two types of audits, an internal audit and an external audit.
Someone from within your organization completes an internal audit. The
person doing the internal audit should be known to the organization, but
independent of the administration and finances of the organization. That
means that the Executive Director, Administrator, Storekeeper, and
Procurement Officer may not be the auditor. Somebody from the Board of
Directors or a member with some financial and administrative experience
is a good choice. The internal audit is important so that you can check
your systems before an external auditor comes and checks your
organization. Someone your donor selects will complete external audits.
To do the audit, the auditor follows the checklist below and records what
s/he finds. If there are errors, the auditor should clearly explain what the
mistake was and how it should be corrected. The first time that an audit
is done, it may take a lot of time (up to one week to check every single
paper) because every document must be checked carefully. However,
after the first audit, if the staff has corrected the mistakes, the auditor
should be able to check everything in just a few days. To do the audit, the
auditor simply looks at each of the following statements and checks to see
if it is true or not. If not, then the auditor must write down exactly what
the problem is. For example, if the auditor is checking to see if “All fixed
assets are recorded correctly in the Fixed Assets Register,” then she or he
will have to go and see all of the fixed assets and check their condition,
location, serial numbers, etc. If, for example, the auditor sees that the
new chairs do not have serial numbers on them, then he or she should
write down that the Administrator needs to give the new chairs serial
numbers.
When the auditor is finished, she or he should prepare a report with the
findings and share it with the staff and Board of Directors. Then the
auditor should make a list of recommendations for how the mistakes can
be fixed. The Executive Director is responsible for seeing that the
recommendations are followed.

INTERNAL AUDIT CHECKLIST
A. INTERNAL SYSTEMS
 The NGO has a Board of Trustees or Board of Directors.
 There is a written Organizational Structure Chart.
 There is a system for reviewing and following-up reports that has
been made for the organization, and it is being implemented.
B. FIXED ASSETS
 The NGO has a clear fixed assets policy.
 The fixed assets policy is implemented.
 All fixed assets are recorded correctly in the Fixed Assets Register.
 The fixed assets are counted regularly and the count is recorded.
C. VEHICLE MANAGEMENT
 The NGO has a comprehensive vehicle usage policy.
 The vehicle policy has been implemented.
 The NGO maintains a Vehicle Logbook, which is filled in completely
and correctly.
D. INVENTORY
 A written inventory management policy exists.
 The inventory policy is implemented.
When inventory is used, it is:
 Authorized by the correct person.
 Properly supported with a Supply Request Form.
 Properly recorded in the Inventory (Non-Expendable Supplies)
Register or Supply Control Card.
 The inventory is counted regularly and the count is recorded.
E. PERSONNEL AND PAYROLL

 The NGO has a clear personnel policy.
 The NGO has implemented its personnel policy.
 All staff members have detailed job descriptions.
 There are defined systems of evaluating and measuring staff
performance and they are in use.
 All staff members have current, written, signed Employment
Contracts.
 Documentation and authorization of payroll exists (such as
timesheets and contracts).

6- HOW TO WRITE ORGANIZATIONAL POLICIES
Now, having learned all of the good practices for setting up and managing
your organization’s administrative systems, it is necessary to write down
what procedures you will adopt to make sure your staff use them. Once
these procedures are written, then they should be approved and made
into organizational policy by the Board of Directors. Organizational
policies are extremely important because they help the organization to
manage its resources in a regular way. They can also prevent conflict
about how something should be handled. If there is disagreement, then
the policy should show the agreed way to manage it. Here are the basic
steps to developing policies.
1. Identify what policies the organization needs-

To set up a good financial system, an organization needs at least:
 Inventory policy- how to manage organizational inventory
 Fixed assets policy- how to manage the fixed assets, with specific
policies for any fixed assets that have different procedures, such as a
video camera, photocopier, etc.
 Vehicle policy- how to manage your organization’s vehicle
 Personnel policy- how to hire, maintain, and dismiss your staff
2. State what the current procedures are-

After you have established what policies your organization needs, then it
is time to start writing the policies. Begin by writing down all of the
current procedures. Even if they are very informal, write down what you
are doing now.
3. Lay out the framework for a new policy-

Based on your current procedure, identify areas that are not covered or
that need to be improved. The guidelines for each policy as well as the
standards for a good administrative system in the following sections
should help you to identify the points that you need to cover. Policies
should:
 Define what the policy covers
 Establish what the procedure is for managing the resource
 State clearly who will have what responsibility
 Explain how to monitor and evaluate the resource
 List what records must be kept to manage the resource
4. Write the new policy

The staff should develop the new policy based on current procedures and
weaknesses that they have learned about in this manual. Then the new
policy goes to the leadership body for approval.
5. Approve the policy-

After the policy has been drafted, all of the organization’s staff, members,
and leadership should discuss it. Use the list of questions on the next

page to review the policy and decide if it is something that your
organization can actually implement. Remember that the policy must
include ways of monitoring itself so that you can check to see that it is
being implemented.
After the leadership approves the policy, the organization can make an
Administrative Manual that contains all of its policies. It could also
include the constitution, mission statement (if it is not in the constitution),
and organizational structure chart. It is essential that all staff have access
to the policies, so make several copies of the manual and distribute them
throughout the office.
The most important thing is to make a policy that you can really
implement and follow!

20 QUESTIONS FOR POLICY MONITORING AND
EVALUATION
It is the role of the Board of Directors or leadership body to develop and/or

approve all of the organization’s policies. Adopting a policy is an
important responsibility; therefore, it is necessary to consider many
aspects of the policy before deciding whether or not to accept it. Here are
some issues to discuss:
1. Does the policy reflect the organization’s missions and goals?

2. Does the policy conflict with another one of the organization’s policies?
3. Is the policy similar to what is actually being practiced?
4. Is the policy realistic? Can what has been written actually be
implemented?
5. Is the policy in agreement with an international standard (such as the
Generally Accepted Accounting Procedures for finance)?
6. Is the policy acceptable to local standards and local regulations (such
as the Somaliland labor code)?
7. Can the policy be integrated with other policies?
8. Is the policy transparent? Does everyone know what it says can they
see it being followed?
9. Does the policy include technical words that some people may not
understand?
10. Does the policy specifically say who has what responsibility for
what, and when it should be done?
11. Is the policy too vague?
12. Does the policy outline clear lines of responsibility and
accountability?
13. Does the policy explain how it is to be implemented and/or
enforced?
14. Does the policy state the consequences of not obeying the policy?
15. Are there financial costs in implementing this policy (such as stating
that forms must be pre-numbered, and therefore pre-printed)?
16. If so, can the organization cover these costs?
17. Does the policy discriminate against or favor women?
18. Does the policy help minorities in any way?
19. Does the policy allow for changes when necessary?
20. Is the policy flexible enough to be implemented for a long time?

GUIDELINES FOR DEVELOPING A FIXED ASSET POLICY
Making a fixed asset policy is important because expensive equipment

must be well maintained so that it will continue to be of use to the
organization. If it is not managed well, it can be broken or misused easily.
Therefore, it must be made clear who is in charge of what assets and who
can use which ones, when, and for what purpose.
The fixed asset policy should cover the following areas:

1. How assets are registered in the organization
2. Who can use which assets
3. How the assets and the people using them are monitored
4. What happens if they are damaged or lost
1. Registering fixed assets-

When fixed assets come into the office, whether they are donations or
purchases, they should be given a unique serial number (unless they
already have one given by the factory where they were made). The
details of each asset should be recorded in a fixed asset register that
describes the asset, its make and model, serial number, budget category,
purchase price, date of purchase or receipt, location, and disposal.
2. Using fixed assets-

Can anyone use the asset, or must only people with specific technical
expertise use it? Is it necessary that someone supervise the person using
of the asset? This point is not necessary for tables and chairs, but may be
for a computer, video camera, etc.
3. Monitoring fixed assets-

Someone, usually the Administrator, should count all of the fixed assets of
the organization regularly, usually every six months, and check to see
that they are still in good condition, and that the details of the fixed asset
register are correct.
4. Damage or loss of fixed assets-

What will happen if the fixed asset is lost or damaged? Will the
organization pay for the damage or for replacement? If you are not sure,
you could state that the Executive Director will look at each incident on a
case-by-case basis.

GUIDELINES FOR DEVELOPING AN INVENTORY POLICY
An inventory policy is important because if inventory is not managed well,

it can cost the organization a lot of money to keep buying supplies and
materials for the office. Since items can be easily taken, the
Administration Department must be sure that the people who are issued
the supplies are responsible for locking them after office hours and for
keeping track of where they are and their condition. Remember that the
word inventory means both expendable and non-expendable supplies in
this case.
The inventory policy should cover the following areas:

1. How items are registered in the organization
2. Who can use which supplies
5. How the supplies are monitored
3. What happens if they are damaged or lost
1. Registering inventory-
When items come into the office, they should be recorded on either the
Supply Control Cards or the Non-Expendable Supply Register. The
Administrator should record all information, including the color, model,
etc. Remember this applies to donations as well as purchases.
2. Using inventory-
Can anyone use the inventory, or may only employees or members use it?
May the staff members take office supplies home? If so, do they have to
request permission or tell anyone? An easy way to do this is by using a
register, where items are checked out and in daily.
3. Monitoring inventory-
The Administrator should count all of the non-expendable supplies of the
organization at least four times a year and check to see that they are still
in good condition, and that the details of the Non-Expendable Supply
Register are correct. The Administrator should count all of the
expendable supplies every month and be sure that the records match the
physical count of the office store. The Director should appoint a
Storekeeper who will keep the only key to the store.
4. Damage or loss of supplies-

What will happen if a non-expendable supply is lost or damaged? Will the
organization pay for the damage or buy a new one? Or will the person
who damaged it have to repair or replace it? It might be best to
distinguish between intentional damage or irresponsible use and an
accident. A person who purposely damages something or uses something
irresponsibly should pay, but accidents do happen, and so they could be
covered by the organization.

GUIDELINES FOR DEVELOPING A VEHICLE POLICY
Your organizational vehicle policy is extremely important since a vehicle is

very often the biggest cause of conflicts within organizations. The basis of
a good policy is a clear outline of priorities for use of the vehicle. Often
staff members need the vehicle for personal use, but it should be made
clear that that is only possible when the vehicle is not needed for other
official work. A good example is the following: first priority is for staff
doing work, second priority is for BOD members doing organizational
work, third is for staff doing personal activities, fourth for BOD doing
personal activities, fifth is for friends and partners of the organization
doing work or personal activities, and so on.
Your vehicle policy should cover all of the following points:

 Who has first priority to use the vehicle? Who has second priority?
Third? Fourth? Who will determine the priorities of the vehicle? For
example, if an employee has to go to a meeting at 10:00 and a BOD
member also has to go to a meeting at 10:00, who will decide which
person goes first? A good vehicle policy should clearly state priorities
for its use.
 For day-to-day office activities, who is can authorize use of the vehicle?
 Who can drive the vehicle?
 What documents related to the vehicle must be kept? Who keeps
them, and what information do they include? This manual
recommends the Vehicle Logbook and the Vehicle Control Board.
 May partner organizations use the vehicle? Who approves these
requests?
 May organizational members and staff use the vehicle for private
purposes? If so, how far may they take the car before they have to pay
for the fuel they use? Who will approve private use of the vehicles?
 Who checks the vehicle and its documents? How often are they
checked?
 Will the vehicle be required to wait when a person is at a meeting, or
should it return to the office in between? Is there a limit to how long
the driver can wait?
 During the night and whenever the car is not on duty, where should the
vehicle be parked?
 What are the working hours of the driver?
The Administration Department should inform the driver of the vehicle

policy and be sure that he understands it clearly, as well as the people
who use the car (staff, BOD, members, partners, etc.).

GUIDELINES FOR DEVELOPING A HUMAN RESOURCE
POLICY
Making a personnel policy can be a sensitive topic because many

organizations want to hire their founding members or people they know
instead of looking to see if there is anyone else who has better skills and
experience for the job. However, advertising to hire someone can be
difficult if people claim that there has been favoritism towards one clan.
Therefore, the NGO must think about how it can hire and keep the best
possible staff for the organization.
The personnel policy should cover three areas:

1. Hiring employees
2. Maintaining employees
 Training
 Evaluation
 Discipline
3. Dismissing employees
1. Hiring employees
Good practice for hiring staff is to make known any vacancies within the
organization. A selection committee is nominated who will read all CVs,
select whom to interview (at least 2 candidates), and conduct the
interviews. Then the committee makes a recommendation. New
employees usually must first have a trial period of a month or so before
they are confirmed.
The hiring policy should answer these questions:

 How does the organization decide if it needs to hire someone?
 Who is eligible to be employed by the organization (example: only
women, only Somalilanders, etc.)? Is there a priority to hire
previous employees or members?
 How is the position announced?
 Who will oversee the hiring process? If it will be an interview
committee, then who will select the members? Who will the
members be (include their telephone number, and the department
of the organization if needed), and how will they be chosen?
 Has the committee considered at least 2 candidates for each
position?
 Who makes the final decision on who is hired?
 What is the trial period for employment? During the trial period, if
the organization realizes that the employee is not suitable, they
can dismiss him/her without as much notice. Likewise, if the
employee does not like the organization, then he may terminate
employment at the end of the trial period.
The procedures for hiring people can be different for different types of
staff. For example, hiring the Director may be a different process from
hiring the watchman. The policy should cover all these points.
2. Maintaining employees
An organization should improve the experience and skills of its employees
as much as possible, both to keep the employee happy in his or her work
and for the sake of the organization. The main points to cover are:
 How is staff ensured training opportunities outside the
organization?
 What training is staff ensured from the organization itself?
 What support will be given to the staff?
 How will the organization evaluate its staff and get feedback from
the staff?
 What is the process for promotion of staff?
 When are salary increases considered?
 How can an employee make a complaint against the organization or
his supervisor?
 How can the organization request that the employee improve his
work?
 What are the steps for disciplining staff?
 What are the basic working conditions that the organization must
provide?
 What benefits do the employees receive: annual leave, sick leave,
use of office resources for personal use, assistance for personal
situations (like death in the family), Eid bonuses or other
overtime/holiday payments, etc.?
 How is overtime work paid?
 What personnel records are kept? Do employees have access to
any records?
3. Dismissing employees and handling resignations

Sometimes an employee becomes unhappy in his job or gets a better
employment opportunity; likewise, sometimes an organization becomes
dissatisfied with an employee or must dismiss employees because of
funding problems. Dismissing employees is never easy to do, so it must
be done as fairly as possible. The policy should explain:
 What is the procedure for resigning from the organization?
 How much time does the employee need to give the organization in
advance so that he does not lose some of his salary?
 How much time does the employer need to give the employee in
advance so that the organization does not have to pay extra
salary?
 What is the procedure for dismissing an employee (not for
disciplinary reasons)? As much as possible, it is always best to put
a contract’s end in writing.
 What is the procedure for dismissing an employee for disciplinary
reasons? There should be a standard process of at least one
written warning.
 Does the employee have the right to a recommendation or
reference letter when leaving the organization?
SUMMARY OF ADMINISTRATIVE RECORDKEEPING
The following is a summary of the administrative files and records that

your organization should have when you finish setting up your
administrative system. Remember, this is just a list of the administrative
files. You should also have files for correspondence, meeting minutes,
etc. For a full list, see the first section of this manual on filing. Use this as
a checklist to see how your organization compares with where it should
be.
NAME OF RECORD WHERE THE WHO USUALLY WHEN THE

RECORDS ARE KEEPS THE RECORDS ARE
USUALLY KEPT RECORDS UPDATED
MATERIAL RESOURCE MANAGEMENT
Fixed Assets
(Receiving Report) Procurement File Administrator When supplies
arrive
F. A. Supporting FA and Inventory Administrator When FA is
Documents File received
Fixed Assets FA and Inventory Administrator When FAs arrive
Register File
Inventory
(Receiving Report) Procurement File Administrator When supplies
arrive
Non-Expendable FA and Inventory Administrator When supplies
Supplies Register File arrive or are
issued
Supply Control FA and Inventory Administrator When supplies
Cards File arrive or are
issued
Supply Request FA and Inventory Administrator When supplies
Form File are issued
Vehicle
Vehicle Logbook Vehicle File Driver or Every trip
passenger
Vehicle Control If it is on paper, Administrator Every trip
Board in the Vehicle
File
HUMAN RESOURCE MANAGEMENT

Payroll
Employee CV Payroll file Employee When hired
Contracts Payroll file Executive When hired
Director
Time sheets Payroll file Administrator Daily
Leave Approval Payroll file Employee As needed
Forms
Payroll Register Payroll file Administrator End of month
Personnel Action Payroll file Executive When job
Forms Director changes
Personnel
Job Descriptions Personnel file Executive When job
Director changes
Performance Personnel file Executive Annually
Appraisal/ Staff Director
Evaluation
Benefits Claim Personnel file Executive When quitting
Form Director
Responsibility Personnel file Employee When quitting
Turnover Letter

OFFICE MANAGEMENT
Appointment Book Administration Administrator Whenever a
Office or Receptionist visitor comes
Visitor’s Book Administration Administrator Whenever a
Office or Receptionist visitor comes
Telephone Message Administration Administrator Whenever there
Form Office or Receptionist is a telephone
message
ADMINISTRATIVE AUDIT
Internal Audit BOD File Auditor At least twice a
Checklist year
Auditor’s Report BOD File Auditor At least twice a
year

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HOW TO SET UP A BASIC

CBC Administrative Manual,

Local non-governmental organizations, or LNGOs, are increasingly

The approach proposed in these manuals is based on the assumption that

1. Institutional Capacity Building: Capacity-building activities

2. Community Participation: LNGOs must develop strong ties to the

CBC Administrative Manual,

4. Accountability: Clear agreements about accountability (financial and

5. Local Partner Relations: Your organization should promote increased

The Capacity Building Caucus

CBC Administrative Manual,

Building the capacity of your organization requires a lot of work. It can be

FOCUSING THE ORGANIZATION:

Step 1: Structure and Governance

CBC Administrative Manual,

RUNNING THE ORGANIZATION:

Step 2: Organizational Management

CBC Administrative Manual,

How to Set Up A Basic Accounting System for Your LNGO (Volume

How to Set Up A Basic Administrative System for Your LNGO

RUNNING THE PROJECTS:

Step 3: Project Management

How to Design and Manage a Project for Your LNGO (Volume 5)

CBC Administrative Manual,

BUILDING THE ORGANIZATION:

Step 4: Networking and Publicity

SUSTAINING THE ORGANIZATION:

Step 5: Further Development- Sustaining Your Organization

CBC Administrative Manual,

PHILOSOPHY OF THE CBC.........................................................III

WHERE TO START IN BUILDING YOUR CAPACITY..........................V

1- FILING AND RECORDKEEPING.................................................4

6- HOW TO WRITE ORGANIZATIONAL POLICIES..........................68

CBC Administrative Manual,

Administration means managing the activities of an organization and its

This manual looks at four main areas for establishing an administrative

Although one can manage a project or an organization by looking at what

CBC Administrative Manual,

Finally, to provide examples in some of the exercises, I have used an

CBC Administrative Manual,

The very first step to setting up a solid administrative system is to make a

A BASIC FILING SYSTEM

If possible, purchase five new files and some card to make

100- Administrative Documents- This file will be for all of the

CBC Administrative Manual,

The most important step after improving your filing system is

CBC Administrative Manual,

Filing by topic (or subject) is when you group documents by their

Filing in alphabetical order means putting items in order by the first

Filing by number is filing documents or files by their number. It means

CBC Administrative Manual,

The forms needed for material resource

DEFINITIONS OF DIFFERENT MATERIAL RESOURCES:

THE PEOPLE RESPONSIBLE FOR INVENTORY AND FIXED ASSET

Note: These responsibilities are not full-time jobs. The

CBC Administrative Manual,

RECEIVING A FIXED ASSET:

MAINTAINING FIXED ASSETS:

DISPOSING OF FIXED ASSETS:

CBC Administrative Manual,

MAKING YOUR OWN SERIAL NUMBERS:

CBC Administrative Manual,

(Fixed Asset Acquisition Supporting Documentation)- Whenever the

Name: _ Name: _

Name: __________ Name:

Signature: _________ Signature:

Job Title: __________ Job Title: _

Name: Name: ______

Signature: _ Signature: ________

Job Title: Job Title: _______

Name: _ Name:

Signature: Signature:

Date: Date:

Vehicle Number: Month: ______