Banner

  Chrome CSS Drop Down Menu
Operations Enfants du Cambodge
(OEC)
 

FINANCIAL POLICY

 

NAME OF APPENDIX
  1. Delegation of Authority Framework
  2. Procurement Conflict of Interest Statement
  3. Purchase Request Form
  4. Quotation Summary Form
  5. Quotation Request Form
  6. Sole Source Justification
  7. Competitive Bid Analysis Form
  8. Advance Voucher
  9. Expense Voucher
  10. Travel Request Form
  11. Mission Activity Report
  12. Per Diem, Travel & Accommodation Policy
  13. Income Voucher
  14. Pay slip
  15. Asset and Inventory registers
  16. Asset Labels
  17. Accountable Asset form
  18. Delivery Note
  19. Internal Receipt
1. INTRODUCTION
This financial and administrative policies & procedures manual is designed to provide a best practice protocol for Operations Enfants du Cambodge’s utilization of donor funding and financial management.

Donors view sound financial management policies as paramount, and Operations Enfants du Cambodge must work to ensure the use of donor funds in the most effective manner possible.To do this, strict but fair internal finance procedures are essential.
Operations Enfants du Cambodge must be diligent in conforming to all specifications or requirements of a donor in order to sustain our credibility as a competent administrator of fund and thus be worthy of continuing financial support. Project Manager (PM) should obtain detailed guidelines as to how we should spend donor money and all staff must familiarize themselves, at project start, with the donor requirements for their project /program.

Operation Enfants du Cambodge must also ensure that it has in place proper accounting procedures and internal controls so that we can assure our managers and our donors that money is spent in the manner for which it was provided.
This manual explains the approved policies and procedures to be4 administered within Operations Enfants du Cambodge to ensure that we may achieve our goal of showing to donors that we are competent and efficient stewards of their funds.

 

1.1 General Project Financial Responsibilities

The Project Manager is responsible for the overall running of the project. This includes but is not limited to:

  1. Managing project activities and meeting project goals
  2. Managing project finances so they are spent as contracted
  3. adhering to the finance policy in procurement and payment activities
  4. Maintaining detailed records of project inventory
  5. Maintaining personnel
  6. Complying with donor regulations
  7. Completing required narrative reporting in a timely manner
  8. Safeguarding of project asset
  9. Safeguarding of project information
  10. Obtaining no cost extension from donors where necessary

The Finance and Administration personnel are responsible for:

  1. Adhering to the finance policy in procurement and payment activities

  2. Maintaining cash and bank accounts

  3. Maintaining asset/ inventory registers and labeling assets/ inventory

  4. Completing required financial reporting in a timely manner

  5. Preparing payroll information

  6. Managing office support staff

  7. Assisting Project Manager’s with project finances by participating in preparation of budgets, quarterly projection, monthly financial reports and project finance re- projections

FINANCE ORGANIZATION CHART
 

 

 

 

 

 

 

 

 



 

3. DELEGATION OF AUTHORITY
Operations Enfants du Cambodge has determined levels of authority for a number of functions within the office. It is essential that all is aware of this delegation, as this determines who is able to perform certain assignments or make certain authorizations within the office. It is possible for staff to further delegate their authorities to staff within their programs, but any further delegation must be in writing and must be sent to the Executive Director. the Executive Director must accept delegation for it to be affective. There should always be a person in the office who is able to approve expenditures.

The delegation of authority is implied in the remaining sections of this manual and where approval of expenditures is referred to this means that it is approval within the delegation framework. All staff should be aware of whether or not they have a delegation and the extent of that delegation. A copy of the delegation framework is in the Annexes 1.

Should there be any dispute amongst authorized personnel on a particular decision; the mediator shall be the Executive Director. If the dispute has still not been resolved, then the Operations Enfants du Cambodge Board of Director may be approached for mediation. Consequences of bypassing the delegation of authority is a serious matter and disciplinary measure may be taken.

4 PROCUREMENT PROCEDURES
The purpose of this section is to ensure that we have a consistent and transparent approach to purchasing goods and services. This section applies to the procurement of physical goods as well as to the purchasing of services such as vehicle rental, office space rental, venue/ hotel arrangements and consultants, etc.

4.1 Requesting Goods or Services

*NOTE:
All staff that are involved in requesting goods and services or procurement must sign the procurement Conflict of Interest Statement on an annual basis (Annex).
Staff needing any goods or services must complete the Purchase Request Form (Annex 3). This form should contain a detailed description of the item(s) or services required; it should be correctly coded, and must be approved in accordance with the Delegation of Authority. The person approving this form is also indicating that this purchase is necessary for the project and that there is sufficient budget to cover the expense.

4.2 Quotations
Operations Enfants du Cambodge policy on receiving quotations before considering a purchase for goods OR services (such as consultants) are as follows:

NO QUOTAION  NEEDED

US$ 0- US$ 199.99

Single items or a number of items totaling less than $200, no quotation is required.

3 WRITTEN  QUOTAION  NEEDED

US$ 200- US$ 4,999.99

For single items in excess of $200 to be purchased from 1 supplier, or a number of items totaling greater than $200 three WRITTEN quotes from different suppliers are to be obtained.

*NOTE:  Purchases CANNOT be broken up into smaller parts to circumvent quotation requirements.

INVITATION  OF  BIDS

>US$ 5,000

For single items or a number of items totaling greater than $5,000 competitive bids must be invited through placing an advertisement in local newspaper.

*NOTE:  Purchases CANNOT be broken up into smaller parts to circumvent quotation requirements

 

 

  1. Within the stipulated thresholds highlighted above, teams must obtain 3 authentic quotation. Please note at minimum such quotes must include supplier name, address, telephone number, detailed description of services or goods offered, price breakdown, supplier signature, supplier thumb print and supplier name card. Such quotes should be produced by the supplier, rather than Operations Enfants du Cambodge staff, whether hand-written or by computer. A standard quotation, where possible, shall be on supplier’s letterhead paper, signed and stamped.
  2. 2. Upon receiving quotes from suppliers staff member will complete the Summary of Quotations From (Annex 4), outlining details of items/ services, analyzing the quotations received, and making a recommendation.
  3. Where it is not possible to obtain 3 quotes the reason for this must be valid and be stated on the “Summary of Quotation” From and then signed in accordance with the Delegation of Authority. It would be in instances where there are not three suppliers of a particular item in country. If there is only one supplier available, a Sole Source Justification (Annex) must be completed expressly stating how it was determined that there were not other suppliers and this must be approved in accordance with the Delegation of Authority.
  4. The completed “Summary of Quotations” From in addition to the original quotes should be approved in accordance with the Delegation of Authority for final approval and agreement with the team’s recommendation. Please note this is an important step in the process, as the aforementioned positions check the authenticity of the quotations and assess the transparency of each quote.
  5. The Approver confirms/agrees with the procurement of the goods/services and the subsequent expenditure.
4.3 Competitive Bidding
Where goods or services in excess of US$8,500 are requested, a local/national (or internationally per donor regulations) avert must be placed for tenders for these goods. Operations Enfants du Cambodge procedures are:
  1. A selection committee of at least 3 people should be formed. The Committee should consist of a representative of the project, Project Manager and one other person such as Finance Officer and they should determine:
    1. Information required on bid application including:
      (i) Items Specifications
      (ii) Price
      (iii) Supplier details: vendor, address, contact name, telephone, nationality
      (iv) Source and origin of goods
      (v) License details if required
      (vi) Bank details. Vendors placing competitive bids must have a bank account in the company name to which payments will be made by cheque or transfer
    2. Where and how to submit bids (Must be submitted in sealed envelope with vendor contact details note on the outside)
    3. Closing Date for bid submission and date and time for opening bids
    4. Criteria for selection
    5. Where to advertise

     

  2. Write out invitation to bids and place the advertisement.
  3. Stamp the received date on submitted bid envelopes as they are received. Keep them secure and sealed. Bids that are not seals or are submitted after the closing date must be rejected. Stamped envelopes must be retained as part of the bid paperwork to show transparency and fairness.
  4. All paperwork is forwarded to Procurement for purchasing and original bidding documents attached to the disbursement voucher or filed in a Project Bid file which should be referenced on the voucher.
  5. Where less than 3 appropriate bids are received see donor regulations on how to proceed
5 PAYMENT PROCEDURES
5.1 Short-term Advances
An advance may be issued before receipts have been obtained for purchases. If cash is required this must be requested on a Advance Voucher (Annex 8) which clearly identifies the purchase that is to be made. The advance is to be acquitted in a timely manner. Salary advances are permitted on a case by case basis.
Detailed Advance procedures
  1. An Advance Voucher must be fully completed including proper coding and must be approved by a person delegated to approve the eventual purchase.
  2. The Advance Voucher must then be validated by an authorized Finance staff (according to the Delegation of authority Framework). The authorized validator of the voucher must check with Cashier if the requester already has any outstanding advances, and check that all details on the voucher are complete and in with Finance Policies, and the appropriate persons have approved the advance.
  3. The Advance Voucher is given to the Cashier responsible for cash, who will also check to ensure that all of the appropriate fields have been completed, and then give cash to the person requesting. Cashier is not permitted to issue advance without the authorization and validation signatures.
  4. The advance should be recorded the cashbook including date given, payee, purpose, amount, and signature of advance recipient.
  5. The items are purchased and proper documentation obtained.
  6. An Expenditure Voucher (Annex) is prepared with all required documentation.
  7. The Expenditure Voucher must be approved and validated again by the authorized persons to ensure correct and authentic documentation has been obtained. If supporting documentation is not sufficient the voucher will be rejecting until proper documentation is supporting the Expenditure Voucher.
  8. Approved Expenditure Voucher is then passed to Cashier.
  9. The Advance Voucher must always become part of required Expenditure Voucher documentation. In addition to showing an audit trail of funds, this will be documentation for any refund received or additional funds disbursed.
     

Staff are only permitted to have TWO cash advances outstanding at any one time. A third advance cannot be given until the prior advances are cleared, unless there are exceptional circumstances.
Advances must be cleared:

  1. Within 4-5 days of receiving the advance for purchasing of goods OR
  2. Within 1 day after returning form a trip/training/ or workshop
Consequences of Not Clearing:
  • If the advance is 5 days late: The Accountant will verbally request for advance to be cleared and make a note on the Advance Voucher of this request.
  • If the advance is 7days late: The Accountant will send a written request with a copy of the advance voucher to the person who took the advance and send a copy to the Finance manager. At this time the Finance Manager will either facilitate acquittal of the advance or authorize- in writing on the Advance Voucher-deduction of the amount advanced from the salary of the person who has received this advance.

Due to negative balance sheet implications, as many advances as possible should be cleared before the end of the year. All advances that have been outstanding for long than 7 days that show on the end of the month Balance Sheet must be explained and signed off as approved the Finance Manager on this from.

 

1.2 Long –term cash advances
Cash may need to be advanced on longer term basis, for example when transferring to an external partner or for projects carried out in location where there is not OEC office.

Advances may only be sent to partners where a contract exists between Operations Enfants du Cambodge and the partner. The contract must clearly state how much the partner shall receive and in what instalments. These advances may be for up to 1or 3 months maximum at a time.

Where advances are issued for Operations Enfants du Cambodge staff that need to work mainly provincially in a non- Operations Enfants du Cambodge office, different procedures apply and will be officially determined case- by case. Where partner or donor offices are located nearby, efforts will be taken to secure cash advances in those locations. The appropriate Team Leader or Project Manager for the project must first submit a monthly budget for anticipated expenses. The maximum cash advance shall be for $3,000 at any one time. The maximum period for this cash advance will be for 1 month, and all advances must be cleared before accounts are closed at end of month. The Team Leader shall keep a clear and complete cashbook that shall also be submitted at the end of month. If any expenses were not anticipated, Team Leader must contact Project Manager and obtain verbal approval before spending. Surprise cash counts may be conducted at any time. All major procurement and supplies shall be purchased at the Operations Enfants du Cambodge office and transported to the located project.

1.3 Paying for goods and services by cheque
Payment of transactions, where possible, should be made either by bank transfer or by cheque. Payment by bank transfer or cheque to a company (not personal) account is required for all purchases greater than $500. In special cases where company’s do not have company bank accounts, a letter from the company owner is required stating this, with a copy of their ID card/passport, name, address, telephone number. This is to be attached as supporting document to the Expenditure Voucher. All cheque issued must be photocopied and attached to the voucher.

5.4 Procedures for cash and cheque payments

  1. An invoice is received from the supplier and goods/services are delivered/received
  2. Goods are checked to ensure that goods received are the same as what was requested and at the correct price. Once we are satisfied that this is the case then the invoice should be stamped with the “Goods Received By” stamp and signed by the person receiving the goods.
  3. An Expense Voucher (Annex 9) is prepared with correct coding for goods purchased, and all appropriate documentation is attached with the voucher including:
  1. Supplier Invoice with Goods Received Stamp and signature.
  2. Payment receipt if supplied
  3. Approved Purchase Request Form
  4. Quotations or reference to where they are located, if required
  5. Summary or Quotations
  6. Competitive Biddings documents or reference to where they are located, if required
  7. Sole Source Justification if required
  8. Travel Request Form (Annex) for travel expenses
  9. Invitation letters for workshops
  10. Mission Activity Report for any travel (Annex)
  11. Emails of correspondence for further verification
  1. The Expenditure voucher is approved for payment by an authorized person. The person approving the Expenditure voucher is indicating that all required documents are attached and correct.
  2. It is then given to the Cashier responsible for disbursing cash, cheques or bank transfers who will then prepare payment
  3. If the payment is by cheque the invoice is stamped as “paid” and the cheque number and date paid is written on the invoice. The signed cheque is copied and attached to the Expenditure voucher.
  4. If the payment is made by bank transfer the invoice is stamped as paid and the bank transfer document is attached to the invoice
  5. The supplier is contacted to come and receive payment:
  6. The supplier will sign and date the Expenditure voucher to indicate that payment has been received whether paid by cash or cheque
  7. The cash disbursement voucher is numbered and filed consecutively in box file
  8. Expenditure vouchers are entered into QuickBooks with CLEAR descriptions of the expense in English

Supporting Documentation Overview
Complete, accurate and adequate documentation is essential to effective internal control and provides evidence of the transaction, the amount, nature and terms thereof.

The Test
The test of adequate documentation of an accounting entry is whether someone not involved in the transaction could the documentation many years after the date of the transaction and that it clearly describes the transaction and is in accordance with policy and procedures. If a verbal explanation is required then is not enough documentation.

 

6. TRAVEL AND PER DIEMS
Staff are often required to travel as part of their employment. If a person is required to travel for work, a Travel Request Form (Annex 10) must be completed and submitted to the Executive Director for approval.
  • All international travel is to be booked by the Administrator.
  • Domestic travel (within Cambodia) can be arranged by the traveler themselves.
6.1 Travel Advances
Where a person is travelling for Operations Enfants du Cambodge work they will be entitled to take a travel advance. These advance normally consist of the pre-set Per Diem according to Operations Enfants du Cambodge Per Diem Policy (Annex), hotel allowance in accordance with Operations Enfants du Cambodge Per Diem Policy, and airport taxes (if any) likely to be incurred, and visa expenses where necessary. Emergency funds are given only in special circumstances.

Within 1 working day of returning to the office the advance should be cleared through the raising of voucher and having it approved by a person delegated to do so. To clear an advance it is necessary to have supporting documents or evidence that the per diem policy is complied with.
All accommodation costs will be paid for based on the actual authentic receipt provided and subject to the maximum cost permitted per night. Any excess hotel costs above the maximum allowance shall not be paid by Operations Enfants du Cambodge.

Operations Enfants du Cambodge’s per diem policy is located in the Financial Policy. Where foreign currency is used, staff must also submit currency exchange receipt, so expenses may be calculated accurately. Where no currency exchange receipt is submitted, Cashier shall use prevailing rates provided by bank Prior to approving an acquittal of an advance it is necessary for the person approving the voucher to ensure that all of the supporting documents are attached to the voucher.

6.2 Mission Activity Reports
Where staff are travelling for work, either nationally or internationally, a Mission Activity Report (Annex 11) must be completed. The report outlines what your original objective was and what the actual results were off the mission. This report must be signed by the appropriate person in accordance with the Delegation of Authority Framework. The approved final report is attached as supporting document to the travel related voucher.

7. Receiving money
It is necessary to ensure that we have procedures in place to ensure that there are controls when cash is received .All cash received must be receipted and income voucher (Annex 13) must be created. The receipts should be pre-numbered and in triplicate and the original will be signed by the Cashier and given to the person paying money.

The following procedures apply when funds are received:

  • The Cashier shall keep a pre-numbered receipt book which is in triplicate;
  • On receiving money a receipt is to be prepared ensuring that all donor and purpose of donation details are provided for. The receipt should be signed by both the person receiving the money and the Cashier and then approved by a person with delegated authority.
  • The original will be issued to the person paying the money.
  • The second copy is attached to the Income Voucher (Annex 13). The income Voucher is completed with name of payer, (Email) address, date, method of payment, amount, fund category etc which is then checked and singed by Finance Manager or Finance Coordinator;
  • The third copy of the receipt is retained in the receipt book.
  • At the end of each month, Finance Manager should page through the receipt vouchers and make sure that all receipt sure numerically accounted.

The Income Voucher must also have attached, any credit advice from the bank, if payment was made by bank transfer, or a copy of the cheque, if payment made by cheque, and any related communications, e.g. emails from donors saying that funds have been transferred etc.

 

8. PAYROLL
Salaries must be processed latest by the last working day of the month. All national employees are entitled to a 13 month bonus in line with the. Operations Enfants du Cambodge Regulations, The bonus is based on the fiscal year; January-December. The 13 month bonus is payable to staff in 2instalments; 50% on 31 March for Khmer New Year and 50% on September for Pchum Benh. Employees that have not worked a full year prior to the bonus payment will receive pro rata bonuses, calculated by number of days worked in the year.

All employee contractual salaries stated gross (before salary tax deduction CONTENTS calculates tax on salary monthly and deducts from staff salaries. Operations Enfants du Cambodge pays tax on salary to the Tax Department monthly before 15 of every month).

The payroll procedures are follows:

  1. Finance Manger prepares the payroll spreadsheet showing staff name, positions , base salary the tax on salary, any overtime and salary adjustments . The pay slips (Annex 14) must detail clearly the base salary and any additions or deductions, and finally allocation to donors with budget lines.
  2. All pay slips must send to finance manager checking at least 3 days before payroll is due to be processed.
  3. After finance manager has checked all payroll records, Cashier will process payroll.
  4. Program Director or Program Coordinator must approve all pay slips. Pay slips for Program Director or Program Coordinator are approved by Executive Director.
  5. Salaries are paid by bank transfers, cheque and in special circumstance by cash. All are processed after approvals.
  6. Accountant the raised and Expenditure Voucher for the total payroll, to which all signed pay slips are attached. This must be approved by Finance Coordinator.
  7. Employees must sign their pay slips one by in privacy for confidentiality purposes. A listing of salaries on which all employees sign for their pay is NOT acceptable.

All payroll data is confidential. Any staff privy to payroll data must be able abide by confidentiality policy. Breach of this policy will be taken very seriously.


9. ASSET MANAGEMENT

9.1 Definition
Operations Enfants du Cambodge defines fixed assets as: Items over US$100 in value and with a useful life of more than twelve (12) months should be recorded in an asset schedule. Items with a value less than US$100 but with a useful life of greater than 12 month should be recorded in an inventory schedule.

9.2 Asset/ Inventory Items
Items considered to be either an asset or inventory can be identified as follow:

  • Construction Equipment
  • Computer Hardware
  • Computer Software
  • Communication Equipment
  • Office Equipment/Furniture
  • Other Equipment (e.g. Vocational Training Equipment)
  • Vehicles
9.3 Procedures to Maintain Registers
In purchasing a fixed asset we follow our normal procurement procedures outline in this manual. The following procedures outline the method to maintain our asset and inventory registers:
  1. Each month a report on asset purchases will be generated from QuickBooks by the accountant who will identify entries charged to the specific asset accounts.
  2. This list will be sorted into assets and inventories, based on monetary value.
  3. Each items purchased and charged to one of these account and value at greater than US$100 is to be added to the asset register by the accountant. Each items purchase and charged to one of these accounts and value less than US$100 will be added to the inventory list by the accountant.
  4. The completed list will be emailed to finance Coordinator who will make sure the required changes were properly added and save the new register to the server.
  5. The standard Operations Enfants du Cambodge asset and inventory registers that must be used and fully completed are located in the Annexes.
  6. Each asset/inventory items is to be numbered and labeled per the example in the Annexes. They are to be labelled within one week after the items is received.

The reason for maintaining an inventory register is that some items may fall below the financial value set out above but may still be considered liable to loss or theft because of size or nature. These items maybe portable and attractive and include radios, mobile phones, cameras, etc. Where a portable and attractive inventory or asset items is assigned to an individual (e.g mobile phone, laptop) the individual must sign an Accountable Asset from clearly stating the terms and condition of use and Operations Enfants du Cambodge of the items (Annex).

 

9.4 Asset transfers
From time to time assets may be transferred from one location to another or from one project to another. When an asset is transferred an Asset Transfer Form should be completed (Annex) and submitted to the authorized person for approval. Where necessary, approval of the donor must also be obtained. If the transfer is from Operations Enfants du Cambodge one project to another the items must beaded to the asset/inventory register of the project that receives it. This form need to be signed by receiver and transferor, as well as appropriate person for approval (see Delegation of Authority Framework).

9.5 Disposal of assets
When an asset no longer has any use it should be disposed of appropriately. All asset disposals must be pre-approved by Program Director, as per the delegation and comply with donor regulations. Where the asset has been purchased by a current donor, the donor must give authority in writing to dispose of the asset, and agree with the manner of disposal, such as donate to beneficiary, donate to a partner organization, donate to a government office, sell the asset or simply destroy it because it no longer works.

The disposal must be supported by documentation and note in the fixed asset register. There should be no warranty offered on assets sold or donated, and the assets are sold on an “as is, where is” basis and the receiver is responsible for removing the asset at their own risk.
Where IT assets are disposed of it is necessary to ensure that all files have been backed up and removed from the hard drives. Hard disks should be reformatted rather than relying on deleting files. If an asset is to be sold the principle of open and effective competition is to be applied.

 

10. JOURNAL VOUCHERS
The Journal vouchers are for Finance staff usage only. The voucher can be found in the Annexes. The journal vouchers are used for all non-income and non-expense transactions. Examples of usage are as follow:
  • Withdrawal of cash from the bank account (Supported by cheque copy).
  • Deposit of cash to bank account (deposit slip receipt attached).
  • Adjustment to erroneous allocation of expense or income (with reference of original income or expense voucher)
  • Advance clearance where no expense occurred, e.g. Employee takes a $20 advance, and returns the full $20 with no transaction occurring. (Attach Advance Voucher as supporting document)

All Journal Vouchers must have as much supporting document as is possible. The Journal Voucher ensures the all recorded transactions in QuickBooks are supported by a voucher for reference.

 

11. CASH MANAGEMENT POLICY
Operates predominantly in a cash economy and must therefore maintain strict control over all cash which should be managing cash are called" Cash custodians" and their position are titled" Cashiers ".

11.1 Petty Cash Balance
OEC has in place an Impress Petty Cash System. This means that there is a minimum and maximum amount of petty cash on hand. The Cashier is responsible for ensuring that there are sufficient funds on hand to meet the needs of the office on a day to day basis, as well as any emergencies. An impress system is one which constantly maintains approximately the same maximum level of cash. When the balance of funds reaches the minimum balance permitted or we have knowledge that a large amount of payments are to be made then we will replenish the balance to the maximum balance by making a withdrawal of funds, supported by the appropriate documents.

In all instances cash withdrawals will be made to bring the cash balance bank to the amount expected to be required to implement activities. The following table shows the minimum and maximum petty cash for the OEC Head Office deemed sufficient.

Office

Minimum Balance

Maximum Balance

Head Office , Battambang

US $500

US $1000

 

11.2 Cash books
Every petty cash box must be supported by a physical cashbook. The cashbook is a prime book of entry, in which transaction related to cash only are recorded in detail. This cashbook is maintained by the cash custodian. The cashbook columns:

 

DATE

REF

DESCRIPTION

DR

CR

BALANCE

Date of

the

transaction

Voucher

reference of expense/

advance/

Income

Explanation of the transaction

Amount

of incoming

cash

Amount

of outgoing

cash

Running

balance of the petty cash after each

transaction

 

Every column must be completed in full with no delays. This means the cashbook entry is completed at the precise moment the cash changes hands. All staff that receive or give cash to the cashier must write their name and sign on the cashbook if they agree with the amount, date and explanation. This requires that each staff waits while the cashier completes each column.
It is not acceptable to leave the name and signature column blank, or to write something generic such as "Supplier". Where more than one currency is used, there shall be 1 cashbook for both currencies. The columns for amounts will therefore appear as:
 

DR

US $

DR

KHR

CR

US$

CR

KHR

BALANCE

US$

BALANCH

KHR

 

 

3

3,000

xxx

xxx


 

Where one transaction is conducted in 2 currencies, the whole transaction should only appear on 1 line. The above shows an example of the amount of $3.75. All cashbook must be bound and taken care of. When not in use, they must be locked in the cashier's desk drawer.

If the petty cashbox changes hand a recorded cash count must be conducted both the giver and the recipient of the petty cash box, so that both parties are in agreement of the balance of the cash at the time of handover. Such instances occur, when the regular cash custodian will be on annual leave, or when they depart the organization, or even if they are out of the office on an errand.

All cash transactions must be accompanied by an approved supporting document. These documents will include:

  • An Advance Voucher
  • An Expense Voucher
  • An Income Voucher
  • A Journal Voucher

No transaction is permitted without the accompanying, appropriately approved voucher. The cash Custodian will be held responsible is such an event occurs.

 

11.3 Cash Counts
A “cash count” is when the physical petty cash is counted using the cash count form, to verify the balance on hand. The cash count balance is compared against the balance stated in the cashbook, which is why it is imperative that the cashbook is completed immediately upon every movement of cash. There are serious consequences if; the cashbook is not maintained as such; or of the cash count does not match the cashbook.
Under no circumstances, must a transaction 3 record if there is no movement in cash, e.g. for cash kept “aside” for an expected payment. If the cash has not left the cash custodian, the transaction must not be recorded. This would results in a discrepancy between the cash balance and the cashbook balance.

The cash custodian is expected to conduct a recorded cash count at minimum 3 times per working week. Upon these counts, only 1 signature will appear in the cash count form. A second counter is required to conduct a recorded cash count at minimum once per week. The second counter may be; a Finance Manager, Assistant Accountant , Administrator. In these instances, 2 signatures must appear in the count form.

Form time to time a “Surprise” cash count must be conducted. These are cash counts where the cash custodian is not expecting a cash count. Once a declaration has been made to the cash Custodian of the intention to conduct a surprise cash count, the process shall be as follows:

  • The cash count must take place immediately (not e.g. after lunch).
  • The surprise cash counter must remain present and observe the cash custodian retrieving the cashbox (from the safe or their desk drawer).
  • The cashbook and cash count book must be given to the surprise cash counter.
  • The surprise cash counter must write “Surprise Cash Count” on the cash count sheet and the date.
  • The Cash Custodian must observe the cash count being conducted.
  • The surprise cash counter should match the cash balance against the cashbook.

It is therefore imperative that the surprise cash counter decides on an appropriate time for both then to count the cash and for the cashier to be available. If any discrepancies are found, these must be reported to the Finance, Project manager, Technical Advisor and Executive Director.

Any senior management member, Project Manager, or Technical Advisor is authorized to conduct a surprise cash counter at any time.

11.4 Petty Cash Office Hours
Cash custodians are often have other responsibilities in their daily work, aside from managing the cash. For this reason, all program offices have “Cash Office Hours”. Only during these hours, the cashier is available to give/receive cash. In exceptional emergency circumstances, e.g. emergency hospital costs for a beneficiary, which may be out of cash office hours, the cashier will provide assistance and issue cash as needed.

11.5 Security of Petty Cash
Out of cash hours, all petty office will be kept in a lock safe. All safes have 2 required entry keys, which include a numeric combination and a steel key. Arrangements may be made in the office, whereby 1 authorized employee has the key to the safe, and another staff has combination code, resulting in requiring 2 person to open the safe at all times. This may not always be feasible and therefore it is not a compulsory requirement.

During cash office hours, the cash will be secured in locked desk drawer. Under no circumstance must cash be left unattended. If cashier leaves their desk, the cash must be locked in drawer and keys shall remain with the cashier. It is unacceptable for staff to take home the cash box contents, for any reason.

11.6 Discrepancies in Cash Counts
Cash custodians are expected to work with precision and accuracy at all times, as they hold a major and vulnerable asset of organization. As such, unreported discrepancies and major unexplained discrepancies will be taken very seriously.

Should the Cash custodian find a discrepancy between the physical cash balance and the cashbook balance, they must report this immediately to their Manager and Finance Manager, before attempting to resolve the difference. They must never attempt to rectify any difference by contributing their own cash or taking out cash.

Senior Finance staff may decide to rectify small differences by allowing adjustments, with the support of the Journal Voucher, however such adjustments must be infrequent and of significantly low value (e.g. US$1 equivalent).

Cash reconciliations are conducted by a finance staff member separate from the cash custodian. The cash reconciliations will compare the updated QuickBooks petty cash balance, against the cashbook and the cash count record. All reconciliations must be document and signed.
 

12. THE ACCOUNTING SYSTEM

a/ Accounting Procedures
12.1 The prime entry record to the QuickBooks system is the cashbook. As the prime entry record it is imperative that recording be correct and description listed be clear and easily interpreted by someone outside the project. The cashbooks should detail and reflect all transactions made.
12.2 It is necessary that the vouchers are correctly codes as these are entered on to the cashbook (see below).
12.3 After the cashbook, the vouchers are entered into the QuickBooks system in voucher order. This must be done daily to ensure month and reporting is not delayed.
12.4 Vouchers to be entered into QuickBooks (“Make General Journal Entries”) include expenditure vouchers; advance vouchers, income vouchers and journal vouchers.

b/ Voucher Coding
All vouchers must be numbered/ coded. The code in voucher identified what type of voucher it is, the month and year, and an assigned number to that voucher. Every expenditure voucher/transaction in the cashbook is identified separately by the voucher number, e.g.

2digit code: Number of the transaction
PV= Expense Voucher which is consecutively
RV= Receive fund (Donor) Voucher numbered, starting at 001

c/ Chart of Accounts
Operations Enfants du Cambodge uses a global Chart of Accounts for all transaction. All accounts have a numerical code that must be written on each expense/income voucher. When expense vouchers are entered into QuickBooks, each transaction is allocate to an account code. Monthly and annual Statement of Receipts and Disbursements are completed using the Chart of Accounts. For internal reporting purposes.

 

13. MONTHLY FINANCIAL REPORTING PROCEDURES

Monthly reporting must include:

  1. Statement of Receipts and Disbursements
  2. Statement of Financial Position (Balance Sheet)
  3. Statement of Changes in Equity

The financial statements must show 2 balances that equal:

  1. Surplus/deficit of fund receipts
  2. Net assets/Working capital

If the 2 balances are not matching this indicates lack of double-entry use or error, and must be corrected.
All reports must be distributed by the 10th of the month to finance Manager, Project manager, Executive Director and relevant Project Management staff.
The QuickBooks files must be backed-up in the online Drop Box at minimum monthly.


 

14. RATE OF TRAVEL ALLOWANCE AND PER DIEM
a/ Travel Allowance

From

To

Distance (km)

Cost (dollar)

1

Battambang

Phnom Penh

291

15

2

Battambang

Pursat

104

10

3

Battambang

Kampong Chhnang

200

15

4

Battambang

Kampong Cham

415

30

5

Battambang

Siem Reap

173

12

6

Battambang

Udor Meanchey

238

30

7

Battambang

Pheah Vihear

313

30

8

Battambang

Pheah Sihanouk

521

35

9

Battambang

Kampot

439

31

10

Battambang

Koh Kong

562

35

11

Battambang

Takeo

368

25

12

Battambang

Kandal

271

15

13

Battambang

Prey Veng

381

25

14

Battambang

Svay Rieng

413

30

15

Battambang

Banteay Meanchey

68

08

16

Battambang

Kampong Speu

339

20

17

Battambang

Pailin

80

09

18

Battambang

Stoeng Treng

746

35

19

Battambang

Mundol Kiry

812

40

20

Battambang

Rattanakiry

879

45

21

Battambang

Kratie

606

30

22

Battambang

Kep

455

30

23

Battambang

Kampong Thom

301

13

24

Battambang

Poypet

119

10

 

Notice: Transportation Cost:

Distance (km)

cost

1

1-2 km

7000 R

2

3-4 km

8500 R

3

5-6 km

10000 R

4

7-8 km

11500 R

5

9-10 km

13000 R

6

11-12 km

14500 R

7

13-14 km

16000 R

8

15-16 km

17000 R

9

17-18 km

18000 R

10

19-20 km

19000 R

11

Over  20 km

20000 R

 

 
     
   
   
Welcome to OEC.org
 

Home | About Us | What we do | Why we do | Where we do | Human Resource of OEC | Leaders’ page | Fundraising| Financial report | Vacancy

 
   

Address: Operations Enfants du Cambodge (OEC)
No 23 , Sophy II, Rattanak commune, Battambang city, Battambang province, Cambodia
Tel: +855(0) 53 952 752
e-mail: oec@camintel.com