Accounting and Internal Control Procedures Manual Revised November 21

Gaza Community Mental Health Programme
ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL
Table of Contents
SECTION 1 ...................................................................................................................................... 8 ACCOUNTING POLICIES.............................................................................................................. 8 1. 2. 3. 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. PURPOSE ............................................................................................................................ 9 SCOPE.................................................................................................................................. 9 ACCOUNTING POLICIES .................................................................................................. 9 REVENUES AND EXPENSES ................................................................................................. 9 CASH, BANK AND ADVANCES............................................................................................. 10 PROPERTY AND EQUIPMENT .............................................................................................. 10 ACCOUNTS RECEIVABLES ................................................................................................. 11 INVESTMENT IN ASSOCIATES ............................................................................................. 11 ACCOUNTS PAYABLE & ACCRUALS.................................................................................... 12 BASIC FUNCTIONAL CURRENCY AND FOREIGN CURRENCIES ............................................. 12
SECTION 2 .................................................................................................................................... 13 ACCOUNTING AND FINANCIAL REPORTING ........................................................................ 13 1. 2. 3. 4. 5. 5.1. 5.2. 5.3. 6. 6.1. 6.2. 6.3. 6.4. 6.5. 6.6. 6.7. 7. 7.1. 7.2. PURPOSE .......................................................................................................................... 14 SCOPE................................................................................................................................ 14 CHART OF ACCOUNTS................................................................................................... 14 STRUCTURE OF THE GCMHPS ACCOUNTING SYSTEM ....................................... 15 ACCOUNTING RECORDS AND VOUCHERS ............................................................... 16 ACCOUNTING RECORDS .................................................................................................... 16 MAINTAINING ACCOUNTING RECORDS............................................................................... 19 ACCOUNTING FORMS AND VOUCHERS .............................................................................. 20 RECORDING OF ACCOUNTING TRANSACTIONS ..................................................... 22 DATA ENTRY ..................................................................................................................... 22 RECORDING DEPARTMENTS ACTIVITIES ........................................................................... 23 POSTING TO THE GENERAL LEDGER.................................................................................. 24 RECONCILIATIONS ............................................................................................................. 24 ADJUSTING JOURNAL ENTRIES .......................................................................................... 25 COST CENTERS ................................................................................................................ 26 AUTHORIZED SOFTWARE USERS....................................................................................... 26 FINANCIAL REPORTING ................................................................................................. 28 FINANCIAL REPORTING PROCESS...................................................................................... 28 PERIODICAL FINANCIAL REPORTS ..................................................................................... 29
Draft for Discussion Only

7.3. 7.4. 8. 8.1. 8.2. 9. YEAR-END REPORTING ..................................................................................................... 29 ANNUAL FINANCIAL STATEMENTS ...................................................................................... 30 CLOSING OF ACCOUNTS .............................................................................................. 31 GENERAL LEDGER CLOSING .............................................................................................. 31 YEAR END ADJUSTMENTS ................................................................................................. 31 BACKUP OF ACCOUNTING DATA ................................................................................ 32
SECTION 3 .................................................................................................................................... 33 BUDGETING PROCESS.............................................................................................................. 33 1. 2. 2.1. 2.2. 2.3. PURPOSE .......................................................................................................................... 34 BUDGETING PREPARATION ......................................................................................... 34 BUDGET PREPARATION PROCEDURES .............................................................................. 36 BUDGET REVISION PROCEDURES...................................................................................... 37 QUARTERLY BUDGET ADVANCES ...................................................................................... 38
SECTION 4 .................................................................................................................................... 39 CASH AND BANKS ...................................................................................................................... 39 1. 2. 3. 3.1. 3.2. 3.3. 3.4. 3.5. 4. 5. 5.1. 5.2. 5.3. 6. 7. 8. 8.1. 8.2. PURPOSE .......................................................................................................................... 40 SCOPE................................................................................................................................ 40 GENERAL POLICIES ....................................................................................................... 40 OPENING NEW BANK ACCOUNTS ...................................................................................... 40 CLOSING BANK ACCOUNTS ............................................................................................... 41 BANK TRANSFERS ............................................................................................................. 41 CHECK STOP ORDER ........................................................................................................ 41 AUTHORIZED BANK SIGNATORIES ..................................................................................... 42 CASH RECEIPTS .............................................................................................................. 43 CASH DISBURSEMENTS ................................................................................................ 43 PETTY CASH IMPREST FUND ............................................................................................. 43 CHECKS DISBURSEMENT ................................................................................................... 44 MAINTENANCE OF CHECK LOG .......................................................................................... 45 ADVANCES ........................................................................................................................ 46 BANK RECONCILIATIONS.............................................................................................. 47 PETTY CASH DISBURSEMENT PROCEDURES ......................................................... 50 REQUIRED FORMS AND DOCUMENTS: ............................................................................... 50 PROCEDURES ................................................................................................................... 50

9. 9.1. 9.2. 10. DISBURSEMENTS FUNCTION ....................................................................................... 52 REQUIRED FORMS AND DOCUMENTS: ............................................................................... 52 PROCEDURES ................................................................................................................... 52 CASH RECEIPT PROCEDURES ..................................................................................... 54 REQUIRED FORMS AND DOCUMENTS ............................................................................. 54 PROCEDURES................................................................................................................ 54
10.1. 10.2. 11.
BANK RECONCILIATIONS PROCEDURES .................................................................. 56 REQUIRED FORMS AND DOCUMENTS ............................................................................. 56 PROCEDURES................................................................................................................ 56
11.1. 11.2.
SECTION 5 .................................................................................................................................... 57 PROCUREMENT AND CONTRACTING .................................................................................... 57 12. 13. 14. PURPOSE .......................................................................................................................... 58 SCOPE................................................................................................................................ 58 PROCUREMENT AND CONTRACTING POLICIES...................................................... 58 GENERAL POLICY .......................................................................................................... 58 PURCHASING AND CONTRACTING ETHICS...................................................................... 61 PURCHASE REQUISITION ............................................................................................... 61 QUOTATIONS ................................................................................................................. 62 PROCUREMENT COMMITTEES ........................................................................................ 64 PROCUREMENT AND CONTRACTING AUTHORITY LIMITS ................................................. 65 APPROVED VENDORS LIST ............................................................................................ 66 PURCHASE ORDERS ...................................................................................................... 66 VENDOR / CONTRACTOR SELECTION ............................................................................. 67 DOCUMENTATION OF LARGE PURCHASES...................................................................... 67
14.1. 14.2. 14.3. 14.4. 14.5. 14.6. 14.7. 14.8. 14.9. 14.10. 15.
PROCUREMENT PROCEDURES ................................................................................... 72 PURCHASING PROCEDURES .......................................................................................... 72 RECEIVING PROCEDURES .............................................................................................. 74 RECORDING OF PURCHASES ......................................................................................... 75 PAYMENT PROCEDURES ................................................................................................ 76 CONSTRUCTION CONTRACTING PROCEDURES .............................................................. 77 ADVANCE PAYMENTS TO CONTRACTORS....................................................................... 78 INTERIM BILLING PROCEDURES ..................................................................................... 79 PAYMENTS TO CONTRACTORS....................................................................................... 80 PROJECT HANDING OVER PROCEDURES ....................................................................... 81
15.1. 15.2. 15.3. 15.4. 15.5. 15.6. 15.7. 15.8. 15.9.
SECTION 6 .................................................................................................................................... 83 ACCOUNTS PAYABLE ................................................................................................................ 83 1. 2. PURPOSE .......................................................................................................................... 84 SCOPE................................................................................................................................ 84

3. 3.1. 3.2. 3.3. ACCOUNTS PAYABLE POLICIES ................................................................................. 84 ACCOUNTABILITY............................................................................................................... 84 PROCESSING AND RECORDING.......................................................................................... 85 MONITORING ..................................................................................................................... 85
SECTION 7 .................................................................................................................................... 87 PAYROLL PROCESSING ............................................................................................................ 87 1. 2. 3. 4. 5. 6. 7. 7.1. 7.2. 8. PURPOSE .......................................................................................................................... 88 SCOPE................................................................................................................................ 88 TIME REPORTING ............................................................................................................ 88 PAYROLL PREPARATION .............................................................................................. 88 PAYROLL PAYMENTS..................................................................................................... 89 PAYROLL PROCESSING AND PAYMENT PROCEDURES ....................................... 90 EMPLOYEES BENEFITS ................................................................................................ 91 TRAVEL EXPENSES............................................................................................................ 92 FOREIGN ASSISTANTS/CONSULTANTS............................................................................... 93 HUMAN RESOURCES ...................................................................................................... 95 8.1. 8.2. 8.3. 8.3.1. 8.3.2. 8.4. 8.5. 8.6. 8.7. PURPOSE .......................................................................................................................... 95 SCOPE .............................................................................................................................. 95 DESCRIPTION .................................................................................................................... 95 RECRUITMENT ............................................................................................................... 95 RECRUITING CHANNELS ................................................................................................ 95 EMPLOYEES PERSONAL FILES ........................................................................................... 97 CONSISTENCY AND FAIRNESS IN APPLYING POLICIES AND PROCEDURES .......................... 97 EMPLOYMENT CONTRACTS ............................................................................................... 97 PROBATIONARY PERIOD .................................................................................................... 98
SECTION 8 .................................................................................................................................... 99 FIXED ASSETS ............................................................................................................................. 99 1. 2. 3. 4. 5. PURPOSE ........................................................................................................................ 100 SCOPE.............................................................................................................................. 100 PURCHASE OF FIXED ASSETS................................................................................... 100 CAPITALIZATION POLICY ............................................................................................ 100 ACCOUNTABILITY ......................................................................................................... 101

5.1. FIXED ASSETS RECORDING AND PROCESSING ................................................................ 101 5.2. FIXED ASSETS DISPOSAL ................................................................................................ 103 5.2.1. DESCRIPTION OF TASK ................................................................................................ 103 5.2.2. REQUIRED FORMS AND DOCUMENTS ........................................................................... 103 5.2.3. PROCEDURES.............................................................................................................. 104 6. FIXED ASSETS INSURANCE POLICY ........................................................................ 104
SECTION 9 .................................................................................................................................. 105 REVENUES ................................................................................................................................. 105 1. 2. 3. 4. 5. 6. PURPOSE ........................................................................................................................ 106 SCOPE.............................................................................................................................. 106 GRANT REVENUES ....................................................................................................... 106 LOCAL OPERATING REVENUES SOURCES ............................................................ 106 ACCOUNTABILITY ......................................................................................................... 106 LOCAL OPERATING REVENUES AND COLLECTION PROCEDURES ................. 107
SECTION 10 ................................................................................................................................ 109 ALLOCATION OF GENERAL COSTS ..................................................................................... 109 1. 2. 3. PURPOSE ........................................................................................................................ 110 SCOPE.............................................................................................................................. 110 GENERAL COSTS ......................................................................................................... 110
APPENDIX I: CHART OF ACCOUNTS .................................................................................... 112


Accounting and Internal Control Policies and Procedures Manual

Introduction
This manual presents the accounting and internal control policies and procedures of Gaza Community Mental Health Programme (GCMHP). GCMHP was established in 1990 in Gaza as a not-for-profit organization under registration number 563110451 with the Ministry of Justice. During 2000, GCMHP changed its form of organization by registering with the Ministry of Interior in accordance with the NGO Law of 2000 under registration number 7025. GCMHPs mission is to develop GCMHP as knowledge based institution with the purpose of enhancing the capacity of the community in dealing with mental health problems based on the principle of justice, humanity and respect for human rights.
GCMHPs organizational chart is presented below:
Internal Auditor
Board of Directors
Academic Board
Director General (DG)
Director's Assistants
Deputy Director General
Project Management and Fund Raising
Community Centers
Strategic Goals
Community Centers
Public Relation Unit
Finance
Video Unit Strategic Goals

Community Centers
Personnel
IT Unit Strategic Goals
Education, Training & Research Department
Strategic Goals
Women Empowerment Department
Strategic Goals

Section 1
Accounting Policies
Section 1: Accounting Policies

Page 8 of 116 Version
Draft for Discussion Only 8

Last modified

1.
PURPOSE
The overall purpose of this section is to provide guidance for the accounting policies that shall be followed by GCMHP and the maintaining of accounting records, recording transactions, and preparation of financial reports.
2.
SCOPE
This document is applicable to all GCMHPs accounting transactions and the preparation of its financial reports whether performed by central management or by departments.
3.
ACCOUNTING POLICIES
GCMHP shall follow the International Financial Reporting Standards (IFRS) in recording and processing its accounting transactions and preparing its periodical financial reports and its annual financial statements. Following are the main categories of accounts used in GSMHP:
3.1. Revenues and Expenses

3.1.-1 GCMHPs accounting records shall be maintained in accordance with the accrual basis of accounting, where revenues are recognized when earned and expenses are recorded when incurred. 3.1.-2 Expenses are to be reported in the accounting records by natural classifications based on the approved budget(s) categories, which are grouped according to strategic goal being used as costs centers. Strategic Goals Expenses These expenses that are the result of activities related directly to services provided by GCMHPs in fulfilling its strategic goals.


Last modified

3.2. Cash, Bank and Advances

GCMHP shall maintain among its records the following accounts: Cash on hand Banks (deposits with maturity of three months or less) Advances
3.3. Property and Equipment

3.3.-1 Property and equipment are stated at cost on the date of acquisition or at fair value of donated assets. Property and equipment are depreciated over their estimated useful lives using the straight-line method at the following annual rates: Furniture and fixtures Computers and printers Medical equipment Training equipment Motor vehicle Office equipment Library books Therapy toys Training hall % 20 50 20-33 50 14-20 20 20 50 2
3.3.-2 The recorded value of property and equipment comprises of its purchase price, or the fair value in case of donated assets, and any directly attributable costs of bringing the assets to the working condition for its intended use. 3.3.-3 The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. If any such indication exists and Section 1: Accounting Policies

Last modified

where the carrying values exceed the estimated recoverable amount, the assets are written down to their recoverable amount.
3.4. Accounts Receivables

Accounts receivable are stated at original amount less a provision for any uncollectible amounts. An estimate for uncollectible receivables shall be made when collection of the full amount is no longer probable.
3.5. Investment in Associates

Investment in associates is described in details in IFRS 28 and is accounted for using one of the following two methods: 3.5.-1 Cost Method: The investor records its investment in the investee at cost. The investor recognizes income only to the extent that it receives distributions from the accumulated net profits of the investee arising subsequent to the date of acquisition by the investor. Distributions received in excess of such profits are considered a recovery of investment and are recorded as a reduction of the cost of the investment. 3.5.-2 Equity Method: When GCMHP exercise significant influence (the power to participate in the financial and operating policy decisions of the investee) the equity method shall be followed whether or not GCMHP also has investments in subsidiaries and prepares consolidated financial statements. The equity method shall not be applied when an associate is acquired and held with a view to its disposal within twelve months of acquisition. Under the equity method, the investment is initially recorded at cost and the carrying amount is increased or decreased to recognise the investor's share of the profits or losses of the investee after the date of acquisition. Distributions received from an investee reduce the carrying amount of the Section 1: Accounting Policies

Last modified

investment.
3.6. Accounts Payable & Accruals

GCMHP shall recognize accounts payable upon receiving invoices and accruals as part of its accounting records.
3.7. Basic Functional Currency and Foreign Currencies

3.7.-1 The United States Dollar (U.S. $) is GCMHPs basic functional and reporting currency. Certain donations reporting currency may differ from the functional currency depending on the financing agreements with donors. (Reporting currency is the currency used in presenting the financial statements of GCMHP). 3.7.-2 Transactions in foreign currencies (foreign currencies are currencies other than the functional currency) shall be translated into U.S. $ using the exchange rate prevailing at the date of each transaction. 3.7.-3 Gains or losses arising from exchange differences shall be reflected in the statement of activities.


Last modified


Section 2
Accounting and Financial Reporting
Section 2: Accounting and Financial Reporting


Last modified

1.
PURPOSE
The purpose of this section is to ensure that accounting records are properly maintained and financial reports are properly prepared in accordance with the International Financial Reporting Standards and managements needs. This document will ensure that: GCMHP maintains adequate accounting records. The accounting transactions shall be recorded on timely basis, and in accordance with the approved accounting policies in a manner that facilitates the generation of the required financial statements and reports. Financial reports are properly prepared to serve management and other parties needs for reliable, relevant and timely information. Financial reports are properly reviewed and approved in accordance with managements criteria. Documents pertaining to financial reports are physically safeguarded.
2.
SCOPE
This section is applicable to all periodic financial reports that shall be prepared by GCMHP as well as the annual financial statements.
3.
CHART OF ACCOUNTS
GCMHP and its departments shall use the standard chart of accounts presented in appendix I. The Financial Manager shall approve any updates or amendments to the chart of accounts. The accounting transactions shall be properly classified, and recorded in the accounting records, in accordance with the approved standard chart of accounts. All accounting transactions shall be classified according to this chart of accounts.


Last modified

4.
STRUCTURE OF THE GCMHPS ACCOUNTING SYSTEM

The structure of the GCMHPS accounting system is as follows:
Chart of Accounts
Accounting Vouchers
General Ledger
Accounting Reports
Departments
Cash
Advances
Receivables
Property and Equipment
Investments
Payables
Revenues
Expenses
Cost Centers
Children
Human Rights
Women Empowermen t
Organizational Development
General Activities


Last modified

5.
ACCOUNTING RECORDS AND VOUCHERS
5.1. Accounting Records

The following main accounting records shall be maintained by the accounting department: General Ledger Includes all accounting entries that are processed into the accounting software to record all accounting transactions.
General Ledger and Main Classifications Include the following main categories: Cash. Advances. Receivables. Property and equipment. Payables. Revenues. Expenses. Petty Cash Record It represents a register that shall be updated on daily basis and includes the following: Cash beginning balance. Cash received. Cash payments and petty cash payment voucher number. Balance per cash register. Balance per actual physical count at the date of performing cash counts.


Last modified

Donations Register This is a separate register from the accounting records, it shall be updated on a monthly basis and include the following: Donation amount and any subsequent additions. Total cash received. Cash paid from the donation amount. Cash balance, end of period. Unpaid balance of the donation. Expenses charged to the donation. Any additional information (i.e. restrictions). Fixed Assets (Property and equipment) Register Includes the following for each fixed asset item: Item number Type Model Description Donor Location Date of purchase and receipt Cost Additions Disposals Estimated useful life Depreciation rate Accumulated depreciation Net book value


Last modified

Accounts Payable Record It represents a register that shall be updated on daily basis and includes the following (this record can be generated systematically if the accounting software provides such details): Supplier name Purchase order number and date Date of delivery Terms of payment Payment due date Previous payments Amount due to supplier Employees Record (name and summary of personal information) Payroll Register Prepared monthly till year-end and shall include: Employees name and employment number. Date of employment. Basic salary. Allowances (item by item). Gross salary. Income tax. Any other deductions. Net pay amount. End-of-service benefits record, per employee, including: Employees name and employment number. Date of employment. Last basic salary. Provision for end of service beginning balance. Payments (final settlement). Additions during the period. End-of-service provision, ending balance. Section 2: Accounting and Financial Reporting

Last modified

Contract under Progress Report Which shall be updated on a monthly basis and shall contain the following information: Location, code and name. Original contract price and approved change orders. Work performed to date. Contractor billings and requests. Amount of paid invoices. Retention balance. Balance of advance payment. Cost of completed work. Type and amount of contractor guarantees.
5.2. Maintaining Accounting Records

5.2.-1 Segregation of duties shall be assured by separating record keeping, authorization and custody. 5.2.-2 Custody and access to records shall be limited to authorized persons. 5.2.-3 At the end of each month, the Financial Manager shall ensure the accuracy of the serial numbers of all accounting vouchers, sign a document that shows the proper sequence of serial numbers and file a report on exceptions. 5.2.-4 The Financial Manager is responsible for reviewing all accounting journals to ensure that: All accounting transactions have been initiated according to the GCMHPs policies and procedures manual. Accounting vouchers are supported by proper documents.


Last modified

Accounting vouchers are filed on a timely basis according to their serial number or to the nature of the account and according to the chart of accounts. 5.2.-5 All accounting vouchers shall be signed by the Financial Manager after being entered into the accounting system and prior to posting them to the general ledger.
5.3. Accounting Forms and Vouchers

5.3.-1 Defined and standard accounting forms and vouchers shall be used by the GCMHP as the basis for documenting and recording accounting transactions in the accounting system. 5.3.-2 The original voucher used in the accounting software is the journal voucher. A clear reference shall be documented between these vouchers and the relevant vouchers and supporting documents. 5.3.-3 The accounting vouchers shall be properly arranged and filed to ensure accountability and facilitate subsequent review and audit of the accounting transactions and documents.
5.3.-4 Following is a list of the accounting vouchers and documents that shall be
used by GCMHP in documenting its accounting transactions: Form # 1 2 3 4 Voucher Receipt voucher Use Records all receipts of cash, checks and bank transfers. Payment voucher Records all payments by checks/transfers. Petty cash payment Records all cash payments from petty voucher cash. Journal voucher Records all non cash transactions.


Last modified

5.3.-5 All of the above mentioned documents may be directly generated from the accounting software, if such software supports the functions to which they relate. In case of using pre-printed vouchers to be filled manually, they shall be pre-numbered and comprise of at least two copies. 5.3.-6 The accounting vouchers shall be serially pre-numbered and only authorized users are allowed to use and fill them out. 5.3.-7 The accounting vouchers shall be free of errors, omissions and alterations. In case of modification, a new form shall be used, while the previous shall be void and retained with its copies. 5.3.-8 All copies of cancelled vouchers shall be maintained and filed in a way to prevent any reuse.


Last modified

6.
Recording of Accounting Transactions
6.1. Data Entry

i. The Department Financial and Administrative Assistant (Administrator) of each department shall maintain separate set of books to record this departments accounting transactions. Following are GCMHP departments and the number of administrator working within each department: Administrator 1 1 3 1 Department Head Office / Administration Department Women Empowerment Department Community Centers (3 Locations) Education, Training and Research
6.1.-1 At the end of each month, the Financial Manager shall consolidate accounting records from the various departments to produce the financial records of GCMHP as a whole. 6.1.-2 Journal vouchers in different departments shall be properly authorized, accurately and completely recorded on a timely basis and reliably processed and reported. 6.1.-3 All Journal entries shall be reviewed by the Financial Manager before posting them into the accounting records and before being consolidated with the Head Office accounts. Such review shall include verification to ensure that the transaction is valid and is supported by proper documentation. 6.1.-4 All journal entries (vouchers) and related documents shall be filed sequentially by form type. Cancelled vouchers shall be stamped with VOID and filed as well.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL 6.2. Recording Departments Activities
6.2.-1 In addition to the above procedures, the Administrator of each department and the Heads of Department are responsible for the financial management, budget control, accounting transactions recording and transferring all related accounting data to the Finance Department to be consolidated at the end of each month. 6.2.-2 All departments participating in recording accounting transactions must follow the applicable GCMHP policies and procedures in carrying out their activities. 6.2.-3 At the end of each month, each department must submit the following reports to the Financial Manager after being approved by the head of each department: A trial balance. Bank reconciliation. Budget versus actual statement of expenses showing all line items included in the budget form for each strategic goal (cost center). Clarifications for all variances from the budget.
6.2.-4 The Financial Manager must review the monthly reports to ensure accuracy. 6.2.-5 Significant variance and non-compliances shall be reported to the Director General.


Last modified

6.2.-6 The Director General or his designee shall approve the statement and the related reports. 6.2.-7 At the end of each month, the Financial Manager shall incorporate the departments accounts balances in the accounting records according to the account number and the cost centers. 6.2.-8 The Administrator in each department along with the Head Office shall use the same accounting software to provide the required reports. 6.2.-9 The Administrator in each department along with the Head Office shall use the same chart of accounts when preparing the required reports.
6.3. Posting to the General Ledger

6.3.-1 Posting of journal entries to the general ledger in the accounting software is the responsibility of the Administrator of each department after getting the approval of the Financial Manager. 6.3.-2 A trial balance shall be prepared by each Administrator in each department and shall be reviewed by the Financial Manager on a monthly basis.
6.4. Reconciliations
6.4.-1 The Administrator in each department is responsible for financial reporting at the end of each month. Efficient and on-time completeness of this process is necessary to prepare reliable financial reports. 6.4.-2 The Administrator shall ensure recording all invoices and financial transactions related to each month. 6.4.-3 A comprehensive review of accounts in the trial balance and cost centers is required while making the reconciliations by the Financial Manager. 6.4.-4 Prompt treatment of reconciling items is required. Section 2: Accounting and Financial Reporting

Last modified

6.4.-5 All reconciliations shall be prepared within 5 days after the end of each month. 6.4.-6 A report of all errors in recording and posting entries during the period shall be prepared in order to include details of the nature of the errors, reasons and correcting procedures taken to avoid such errors in the future. 6.4.-7 The following main reconciliations shall be accurately prepared before the monthly closing of the accounting records.
Reconciliation Bank Reconciliations Receivables/Payables reconciliation Cost centers reconciliation
Prepared/Approved by Administrator/ Financial Manager Administrator/ Financial Manager Financial Manager/Director General Administrator/ Financial Manager
Daily
Monthly
Petty cash reconciliation
6.5. Adjusting Journal Entries

6.5.-1 All adjusting journal entries shall be signed before posting them to the general ledger by the Financial Manager. 6.5.-2 Journal vouchers shall be prepared by the Administrator. 6.5.-3 Data previously entered into the computer system, reviewed and approved by the Financial Manager shall not be altered, to prevent unauthorized modifications.


Last modified

6.5.-4 All Journal vouchers shall be supported by proper, valid and adequate documents.
6.6. Cost Centers

Cost centers are a group of accounts that aims to combine all accounts related to a specified strategic goal in order to prepare separate financial data related to each strategic goal. Each group shall include accounts of cash, bank, receivables, payables, revenues and expenses. 6.6.-1 The Financial Manager is responsible for organizing the cost centers in a systematic manner. 6.6.-2 Administrator is responsible for recording all accounting transactions under relevant cost centers.
6.7. Authorized Software Users

6.7.-1 The following users should have access to the accounting software. However, the accessibility should be restricted to the information necessary to help each user accomplish his duties (modify/view). Director General or his designee, view. Financial Manager, view and modify. Administrator in his/her respective department, view and modify. Internal Auditor, view. Programs Coordinator, view. Additional users might be permitted access based on the discretion of the Director General.


Last modified

6.7.-2 Each authorized person shall have a confidential access password. 6.7.-3 Each authorized user of the accounting software shall have certain duties and shall not be allowed to perform any other duties or access to any data that are not related to his/her work.


Last modified

7.
Financial Reporting
7.1. Financial Reporting Process

7.1.-1 In general, GCMHPs overall main reports shall include the following: Quarterly Financial Performance Report (QFPR Budget vs. actual) Annual audited financial statements.
7.1.-2 The yearly financial reporting package for the GCMHP shall be prepared no later than the 15th of February of the following year. 7.1.-3 Preparation of the reporting package for GCMHP as a whole is the responsibility of the Financial Manager under the supervision of the Director General. 7.1.-4 The Financial Manager shall ensure that the following steps are performed before preparing the reporting package: The departments monthly reports and the supporting documents are reviewed and entered in the accounting records properly. Bank accounts are reconciled with the accounting records. Translation of foreign currencies monetary assets to U.S. Dollar. Account for the un-used balance of the fund received. Other month-end closing steps, as deemed necessary.
7.1.-5 The reporting package shall be prepared by the Financial Manager, reviewed by the Director General.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL 7.2. Periodical Financial Reports
7.2.-1 Following are the periodical financial reports that shall be prepared and reviewed within GCMHP:
Report
Department trial balances Consolidated adjusted trial balance Consolidated statement of financial position and statement of activities QFPR - Budget versus actual expenditures (Department Level) Consolidated budget versus actual expenditures Bank reconciliations - Departments Bank reconciliations Head Office Cash custody reconciliation Receivables/Payables reports (Department level) Receivables/Payables reports (Head office level) Cash Flows budget (Department level) Cash Flows budget (Head office level)
Timing
Monthly Monthly Quarterly Annually Monthly Quarterly Monthly Monthly Monthly Daily Monthly Monthly Monthly Quarterly Monthly Quarterly
Prepared by
Administrator Financial Manager Financial Manager Administrator Financial Manager Administrator Administrator Administrator Administrator Administrator Administrator Administrator
Reviewed & Approved by

Head of Department, Financial Manager Director General (DG) or his designee Director General or his designee Head of Department, Financial Manager, Budget Committee DG or his designee Head of Department, Financial Manager Financial Manager, DG or his designee Head of Department, Financial Manager Head of Department, Financial Manager Financial Manager, DG or his designee Head of Department, Financial Manager Financial Manager, DG or his designee
7.2.-2 Administrator shall deliver their monthly reports to the Finance Department no later than the 5th of the following month.
7.3. Year-end Reporting

7.3.-1 The following additional steps shall be performed by the Financial Manager for the purposes of preparing the year-end reporting package: Fixed assets physical count and adjustments resulting from the count. Each department shall perform its own physical count and the Financial Manager shall combine the information. Section 2: Accounting and Financial Reporting

Last modified

Obtain confirmation/statement of cash received from donors. Obtain bank confirmations/statements of accounts. Complete set of financial statements.
7.4. Annual Financial Statements

7.4.-1 The annual financial statements shall include. Statement of financial position. Statement of activities. Cash flow statement. Notes and disclosures.
7.4.-2 The annual financial statements shall be prepared in accordance with the International Financial Reporting Standards. 7.4.-3 The annual financial statements are to be audited by a reputable Certified Public Accountants firm. The audit shall be conducted in accordance with International Standards on Auditing. 7.4.-4 The year-end financial reporting package shall be ready no later than the 15th of February of the following year. 7.4.-5 The audited financial statements shall be issued within three months after year end. 7.4.-6 The annual audited financial statements shall be reviewed and approved by the Director General and the Board of Directors before issuing.


Last modified

8.
Closing of Accounts
8.1. General Ledger Closing

8.1.-1 The Financial Manager shall close the financial records (general ledger accounts) on a monthly basis. 8.1.-2 Recorded provisions and accruals shall be based on and compared with subsequent transactions and / or predicted amounts. 8.1.-3 All adjustments if any shall be corrected before closing the accounts.
8.2. Year End Adjustments

8.2.-1 Accounting adjustments and reclassifications shall be reviewed and approved by the Financial Manager. 8.2.-2 Accounting adjustments and reclassifications shall be properly supported and documented. 8.2.-3 Accounting adjustments and reclassifications shall be reflected in the quarterly and year-end reporting packages prior to preparing year-end financial statements.


Last modified

9.
Backup of Accounting Data

9.1.-1 Accounting data shall be backed up daily from the computer system hard drive. All backups are to be safe-kept in a location away from the accounting computers and supporting documents. 9.1.-2 After the issuance of the final audited financial statements for the year, a complete set of accounting records and reports (hard copy) shall be printed and filed in a special file.


Last modified


Section 3
Budgeting Process
Section 3: Budgeting Process


Last modified

1.
Purpose
The purpose of this document is to set policies and procedures for GCMHPs budgeting process. These policies and procedures aim at ensuring that GCMHP budget are prepared based on departments activities, strategic goals and availability of funds. The budget shall be properly monitored and controlled by all departments and GCMHP budget committee (defined below).
2.
Budgeting Preparation
The budget report are prepared annually based on a budget model that systematically takes into account all sources of income and the categories of expense to which those sources can be applied. A central item in any budget report is thus the sources and applications table. The sources and applications together define the margin in which virtually all annual and many multi-year budgetary decisions are made. One of the budget process main purposes is to guide budget planning towards those areas where truly strategic decisions are possible and necessary. Budgets will be prepared depending on strategic goals identifiable to CGMHP. A Budget Committee consisting of the Directors General or his designee, the Financial Manager, the Programs Coordinator and the Director General Deputy for Professional Affair shall compile and prepare the budget depending on budgets on action plan contributing to strategic goals planned to be achieved within each department using a standard budget format prepared by the Budget Committee). The Budget Committee shall allocate costs on departments budget based on the level of activities contributed by each department to achieve goals. The annual budget shall be divided into monthly and quarterly budget. Quarterly Budgets shall be approved by the Director General upon presentation of previous quarter results of each department acceptable to the
Budget Committee. In order to avoid disrupting operations, feedback to Section 3: Budgeting Process Draft for Discussion Only
Page 34 of 116 Version Last modified

quarterly report presented by the departments shall be processed / handled within two weeks of submission. Once previous quarterly report is approved, budget quarterly advance are transferred to each department to cover their planned activities. Deviation from the quarterly budget shall be approved by the Budget Committee given that such deviation does not affect the overall annual budget. This budget will be flexible to quarterly updates according to emerging events and availability of funds and shall be amended by the Budget Committee, if required, and then approved by the Director General prior to being approved by the Board of Directors. The Budget Committee shall use budget information supplied form different departments to: Review allocated expenses based on analysis of historical trends. Set income targets based on realistic expectations. Integrate financial planning and analysis into programmatic activity and vice versa. Prepare detailed annual budget for GCMHP as whole
Departments Administrators shall: Monitor budget to control costs and prevent expenditures in excess of budgeted amounts. Compare monthly expenses to budget line items, for both the current month and the year to date. Analyze and explain in detail variances between actual and budgeted amounts.
A detailed annual budget shall be annually submitted by the Director General for donors and Board approval.


Last modified

2.1. Budget Preparation Procedures

The following procedures provide guidelines for GCMHP Budgeting Process
Responsible Person Programs Coordinator Head of Department Budget Committee Director General Budget Committee
Procedures 1. Prepare action plan according to strategic plan. 2. Review and comment on action plan. 3. Prepare budget according to action plan 4. Approve budget 5. Divides the budget into monthly/ quarterly/annually departmental budget 6. Submits the budget to Director General for approval
Director General
7. Approves and submits budget for Board and donor approval.


Last modified

2.2. Budget Revision Procedures

The following procedures provide guidelines for GCMHP Budget revision procedures
Responsible Person Head of Department Programs Coordinator
Procedures 1. Request for budget amendment 2. Revise action plan according to the budget amendment 3. Ensures amended plan fulfil the strategic goals
Administrator Head of Department Programs Coordinator
4. Prepares the revised budget submits to head of department 5. Approves the department budget amendment 6. Reviews the amended budget and ensures agreement with the new level of activities and submit to the Budget Committee 7. Reviews the amended budget and ensure compliance with GCMHP overall budget for the each quarter and for the whole year 8. Submits the amended General for approval budget to Director
Budget Committee
Director General
9. Approves the amendment and submits revised budget for donor and Board approval, as required.


Last modified

2.3. Quarterly Budget Advances

The following procedures provide guidelines for GCMHP quarterly budget advance procedures
Responsible Person Administrator Head of Department
Procedures 1. Prepares Quarterly Financial Performance Report (budget vs. Actual) 2. Review and approve the Quarterly Financial Performance Report and forward to the Programs Coordinator 3. Review and comment on financial report and compare it with planned activities 4. Review, comment and/or clear matters and forward to the Budget Committee. 5. Review and comment on the Quarterly Financial Perform ance Report (within two weeks of submission) 6. Make final approval on the Quarterly Financial Performance Report and authorize next period advance. 7. Prepare quarterly budget advance transfer 8. Sign the quarterly budget advance transfer
Programs Coordinator Financial Manager Budget Committee Director General
Financial Manager Authorized Signatories


Last modified


Section 4
Cash and Banks
Section 4: Cash and Banks


Last modified

1.
Purpose
The purpose of this document is to set policies and procedures for GCMHPs cash and bank accounts. These policies and procedures aim at ensuring that cash and banks transactions are made based on proper authorization to fulfill GCMHPs goals, as well as to assure that they are properly controlled and classified in the accounting records.
2.
Scope
The following cash and banks policies and procedures provide guidelines for opening new bank accounts, closing bank accounts, bank transfers, cash receipts, advances, cash and checks disbursement policies and bank reconciliations.
3.
General Policies
3.1. Opening New Bank Accounts

3.1.-1 Two master bank accounts in the name of GCMHP shall be opened to receive the all funds and donations from donors, one for unrestricted donations and the other for restricted donations. 3.1.-2 4 other sub-bank accounts shall be opened for each department/center to which budget advances shall be transferred. 3.1.-3 All new bank accounts shall be opened by instruction from the Director General to the bank with Board approval. 3.1.-4 Authorized signatories on the new bank account shall be according to the approved authorization policy and limits.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL 3.2. Closing Bank Accounts
3.2.-1 A bank account that is inactive or with a zero balance for more than six months shall be closed, unless there is a justification to keep it open. 3.2.-2 The closure of a bank account is to be recommended by the Financial Manager and/or the Directors Assistant for Administration and Finance (the departments may recommend this step initially) and approved by the Director General. 3.2.-3 Unused checks related to the closed bank account shall be returned to the bank upon closing the account. This process shall be properly documented.
3.3. Bank Transfers

3.3.-1 Major transfers to departments bank accounts will be authorized and issued from the master bank accounts maintained by the Head Office in accordance with GCMHP policies. 3.3.-2 Transfers shall be accounted for promptly to ensure that funds drawn were entered to the other bank. 3.3.-3 Bank transfer is subject to the authority limit set in the manual.
3.4. Check Stop Order

Check stop order shall be issued to the bank upon receiving a written request from the beneficiary claiming loss or error in the issued check(s). A new check shall be issued after receiving a confirmation from the bank that the check is stopped.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL 3.5. Authorized Bank Signatories
3.5.-1 Following are the authorized signatories for GCMHPs Head Office bank accounts: The Chairman of the Board of Directors The Deputy Chairman of the Board of Director The Board Treasurer Director General Personnel Manager
3.5.-2 In addition to GCMHPs authorized signatories shown above, the following are the authorized signatories for all departments bank accounts (both must sign): Head of Department Administrator
The Following is the authority limit on bank transactions: Threshold in U.S. $ 1 1,999 2,000-4,999 5,000 and above Authorized Signatories Administrator and Head of Department. Administrator and Head of Department and Director General. Head of Department and Director General and authorized Board members.
3.5.-3 All authorized signatories shall be approved by the Board. 3.5.-4 The Board shall promptly notify the bank of any changes in authorized signatories or their authorization limits.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL 4. Cash Receipts
4.1.-1 Each receipt transaction shall be recorded by an official receipt voucher. 4.1.-2 Receipt vouchers shall be generated serially from the accounting software. If the accounting software does not support generating receipts vouchers, then it shall be serially pre-numbered.
5.
Cash Disbursements
5.1. Petty Cash Imprest Fund

5.1.-1 Cash disbursements shall be made through a petty cash imprest fund only. 5.1.-2 The petty cash imprest fund shall be used to pay recurring and small expenses up to NIS 250 (the equivalent of U.S $ 50). All expenses above this amount shall be paid by checks. 5.1.-3 The petty cash fund limit is NIS 2,000. The petty cash fund shall be in the custody of an employee who has no role in approving payments or book keeping. 5.1.-4 All disbursements shall be made by check if the amount exceeds NIS 250 (the equivalent of U.S $ 50) and shall be payable to the party from which purchases and services were obtained. 5.1.-5 Prior to the disbursement of any fund, a petty cash payment voucher shall be prepared by the fund custodian and approved by the Head of Department. 5.1.-6 The petty cash custodian shall maintain a petty cash book to document all petty cash transactions and a petty cash expenses summary of all disbursements. 5.1.-7 When the cash on hand is reduced to 25-30% of the fund balance, the petty cash imprest fund shall be replenished in order to bring the balance Section 4: Cash and Banks Draft for Discussion Only
Page 43 of 116 Version Last modified

up to the imprest amount. The amount replenished shall equal the sum of all disbursements since the previous replenishment. Any difference shall be promptly reconciled and cleared. 5.1.-8 The petty cash replenishment check shall be payable to the petty cash custodian after the approval of the Head of Department. 5.1.-9 After replenishment, petty cash vouchers and the supporting documents (i.e. invoices) must be stamped "PAID". 5.1.-10 Any shortage or surplus in the fund shall be investigated, and any unexplained shortage shall be charged to the custodians personal account. 5.1.-11 The petty cash custodian shall not have access to the accounting records and shall not perform any bookkeeping duties. 5.1.-12 Prior to the custodians vacation or termination, the petty cash fund shall be counted, in the presence of the Financial Manager and the Administrator, and turned over to the new assigned custodian. 5.1.-13 Any loss arising from negligence or theft must be immediately reported to the Director General office. 5.1.-14 Surprise cash counts by an independent employee shall be performed at least once every quarterly.
5.2. Checks Disbursement

5.2.-1 The Administrator shall initiate the check payment voucher. 5.2.-2 When processing an invoice for payment, related supporting documents shall be attached to the voucher. 5.2.-3 Check signatories shall review the original supporting documents of the payment. Section 4: Cash and Banks

Last modified

5.2.-4 Payment vouchers shall be prepared by the Administrator and approved by the Head of Department or the Financial Manager (for Head Office transactions). 5.2.-5 Checks shall be prepared by the Administrator and signed by the authorized signatories only after their review of the approved payment vouchers and all required supporting documents. 5.2.-6 A receipt of payment must be obtained from the payee when a payment is made. This receipt shall be attached to the check payment voucher. 5.2.-7 The supporting documents shall be stamped PAID to prevent duplicate payments. 5.2.-8 Checks shall not be payable to the bearer nor signed blank.
5.3. Maintenance of Check Log

5.3.-1 Ordering new checks for all departments shall be handled by the Director General office. 5.3.-2 Distributing check books to department shall be handled by the Director Assistant for Administration and Finance 5.3.-3 Used check books shall be returned when receiving new check books. 5.3.-4 A check book log shall be established by the Director Assistant for Administration and Finance 5.3.-5 A check control log shall be established and maintained through the accounting software to follow-up on outstanding checks. The control log shall contain:
The sequence of checks issued. The name of the beneficiary. Check date. Draft for Discussion Only
Last modified

Clearance date or the return and/or voidance date.
5.3.-6 Unclaimed checks shall be accounted for and shall be considered as reconciling items when preparing monthly bank reconciliations. If, however, the check was outstanding for more than 6 months, the check will be invalid and shall be accounted for separately from valid checks. 5.3.-7 Cancelled checks shall be retained for control purposes and accounted for properly.
6.
Advances
6.1.-1 An advance may be paid to employees, contractors and suppliers as needed. 6.1.-2 The amount of the advance shall be determined based on business needs or the contract with the contractor or supplier. 6.1.-3 Advances to suppliers and contractors shall be approved in accordance with GCMHPs authority limits. 6.1.-4 Advances to suppliers shall be recovered based on the contract terms. 6.1.-5 Advances to employees shall be approved by the Director General 6.1.-6 Related employees, supplier or contractor shall sign the advance payment voucher. The advance shall be recorded in a separate account as a receivable until the advance is recovered or reconciled with actual expenses.


Last modified

7.
Bank Reconciliations
7.1.-1 The department bank reconciliations shall be prepared by the
Administrator using a standard bank reconciliation statement. This standard form provides the following benefits: Ensuring that all necessary information is included on each bank reconciliation prepared. Reducing the time required to prepare and review the reconciliation. Providing documentation of relevant supervisor approval.


Last modified

7.1.-2 Bank reconciliations must be prepared on a monthly basis for all bank accounts. And on a weekly basis if the number of bank accounts transactions is relatively high. 7.1.-3 The bank reconciliations must be prepared even if the balance per books agrees with the balance per bank statement. 7.1.-4 The reconciliation shall be prepared in the original currency of the account. 7.1.-5 The reconciliation shall be prepared within four days from the end of the month. 7.1.-6 Whenever possible, the person preparing the bank reconciliations shall have no cash receipt and disbursement (handling) functions. 7.1.-7 Reconciling items (i.e., outstanding checks and deposits in transit) shall be clearly identified. Items outstanding for a long time shall be investigated and necessary action shall be taken. 7.1.-8 The Administrator shall prepare a journal voucher for any unrecorded items identified in the bank reconciliation statement such as cash transfers, bank charges and errors in recording.


Last modified

7.1.-9 Checks outstanding in the reconciliation for more than six months shall be cancelled and the Administrator shall notify the payee and follow up the alternative payment. 7.1.-10 At the end of the year, a review shall be made of the checks that were cancelled and reverted back to the bank account. 7.1.-11 The weekly and monthly bank reconciliations shall be reviewed and approved by the Head of Department. 7.1.-12 The Financial Manager shall review bank reconciliation as part of the monthly reporting process. 7.1.-13 Reconciliations of the the central bank accounts shall be prepared by the Financial Manager and approved by the Director General of his designee.


Last modified

8.
Petty Cash Disbursement Procedures
8.1. Required Forms and Documents:

Petty Cash Payment Voucher (PCPV). Petty Cash Book. Petty Cash Replenishment Request (PCRR).
8.2. Procedures
The following procedures provide guidelines for GCMHP petty cash disbursement function (up to NIS 250 (the equivalent of U.S $ 50) shall be disbursed from the petty cash): Responsible Employee Cash Custodian Procedures 1. Receives the request for payment and its related supporting documents (e.g. supplier invoices). 2. Ensures that supporting documents are complete and arithmetically accurate. 3. Fills out and signs a Petty Cash Payment Voucher (PCPV), then passes the PCPV together with supporting documents to the Head of Department. Head of Department/Financial Manager (for Head Office) Cash Custodian 5. Pays the amount specified on the PCPV. 6. Stamps the PCPV and the supporting documents as PAID. 7. Updates the petty cash book. Section 4: Cash and Banks
4. Reviews and signs the PCPV and supporting documents.

Last modified

8. Keeps the PCPV and the supporting documents in a locked place. 9. When petty cash runs below 25-30% of the fund balance, the custodian prepares and signs a Petty Cash Replenishment Request (PCRR). Attaches the PCRR with its related PCPVs and supporting documents and submits them to the Administrator. Administrator 10. Reviews the PCRR, the related PCPV and prepares a payment voucher in the amount of the PCRR for reimbursement. 11. Prepares a check with the replenishment amount. Head of Department/Financial Manager (for Head Office) Authorized Signatories (Sec 4. para 3.5.2) Administrator 12. Reviews the PCRR, the related PCPV and the supporting documents and signs the PCRR and the PCPV. 13. Reviews the PCRR, PCPV and other supporting documents and sign the check. 14. Record transaction according to Strategic Goal.


Last modified

9.
Disbursements Function
9.1. Required Forms and Documents:

Payment vouchers. Checks.
9.2. Procedures
If disbursement does not go through the procurement process, the administrator shall ensure budget allowability prior to disbursement. The following procedures provide guidelines for GCMHP check disbursements function (all payments exceeding NIS 250 (the equivalent of U.S $ 50) shall be paid by checks). Responsible Person Administrator Procedures 1. Verifies the invoices presented by suppliers and contractors for payment to ensure accuracy of amounts and that invoices are official and signed/stamped by the supplier(s). 2. Matches the supplier invoice with the related contract, if any. 3. Ensure the supplier is meeting all conditions that are required to make the payment. 4. Obtain a deduction at source certificate from the supplier if the payment is more than NIS 1,000. 5. Prepares a payment voucher and a check for the supplier. 6. Signs the payment voucher and forwards it with the check and the supporting documents to the Head of Department for review and approval. 7. Ensure supplier compliance with all contractual Section 4: Cash and Banks

Last modified

responsibilities by reviewing the supplier file and correspondents GCMHP. Head of Department/Financial Manager (for Head Office) 8. Reviews the above documents and signs the payment voucher and the check after matching the check amount with the amount of the payment voucher and the supplier invoice(s) and other supporting documents. 9. Returns all documents back to the Administrator. Authorized Signatories (Sec 4. para 3.5.2) Administrator 10. Review the payment voucher, check and between the supplier and
supporting documents then sign the check. 11. Obtain a receipt from the supplier in the amount paid or 12. Stamps the invoice PAID, hands over the check to the supplier and obtains the suppliers signature on the payment voucher to
acknowledge receipt. 13. Records the payment voucher transaction into the accounting system according to strategic goals. Custody of Check Books Administrator 1. Responsible for the safe custody of check books and restricts access to them. Cancelled Checks Administrator 2. Defaces the payment voucher and the check with a CANCELLED stamp. If the entry is already posted, prepares a new journal voucher reversing the original entry and record the new Section 4: Cash and Banks

Last modified

entry into the accounting system.
10. Cash Receipt Procedures 10.1. Required Forms and Documents

Receipt voucher. Bank deposit slip.
10.2. Procedures
The following procedures provide guideline for all GCMHP cash receipt transactions. Responsible Person Cash Custodian Procedures 1. Collects cash based on management approved rate for the services provided. 2. Issues a receipt voucher and hand in original to payer (Receipt vouchers shall be signed by the Financial Manager if cash is received as donation). 3. Keeps cash and checks collected during the day are in a secured place until handed to the Administrator to be deposited into the GCMHP main bank account used for unrestricted revenues. 4. Prepares summary at the end of the day for all cash collected, cash submits to the Administrator (deposited to the bank) and remaining cash balance at the end of the day. 5. Send summary with copy of receipt vouchers to the Administrator.


Last modified

Responsible Person Administrator
Procedures 6. On daily basis, receives cash from the cash custodian after being counted. 7. Ensure that collection is in accordance with management approved rate of charge. 8. Ensures that cash and checks collected during the day are kept in a secured place until deposited into the bank, if applicable. 9. Deposits cash/checks into the relevant bank account.
Financial Manager
10. Matches the deposit slips with the receipt voucher to ensure the total cash and checks collected were deposited subsequently in the bank. If the amount received through a fund transfer, agree the bank notice to the receipt voucher. 11. Review summary with issued and deposit slips. receipt vouchers
12. Ensures that there are no missing or unaccounted receipts by ensuring serial numbering sequence. Administrator 13. Record transactions software. into the accounting


Last modified

11. Bank Reconciliations Procedures 11.1. Required Forms and Documents

Bank Reconciliation Form.
11.2. Procedures
The following procedures provide the guideline to the preparation of bank reconciliations. Responsible Person Administrator Procedures 1. Obtains a copy of the previous month bank statement from the bank. 2. Prepares a bank reconciliation statement for each bank account using a standard format within four days of the end of the month. 3. Signs the bank reconciliation. 4. Prepares a journal voucher for any unrecorded items identified in the bank reconciliation statement such as fund transfers, bank charges and errors in recording. 5. Provides adequate explanation of any outstanding items in the bank reconciliation statement. 6. Forwards the bank reconciliation statement with the journal vouchers to the Head of Department/Financial Manager for Head Office bank accounts as well as the previous months bank reconciliation statement. Head of Department/Financial Manager 7. Reviews and signs all bank prepared by the Administrator. reconciliations
8. Follows up to resolve reconciling items. Administrator 9. Files the bank reconciliation statements together with the bank statement in the monthly bank reporting package. Draft for Discussion Only
Last modified


Section 5
Procurement and Contracting
Section 5: Procurement and Contracting


Last modified

12. Purpose
The purpose of this document is to provide policies and procedures for the procurement of goods and services required by GCMHP. This document aims at ensuring that all purchases are obtained in an effective manner.
13. Scope
These policies and procedures specify purchase authority limits and determine the policies and procedures that shall be used by GCMHP and its departments in purchasing goods, services and fixed assets for its activities to achieve its goals and objectives.
14. Procurement and Contracting Policies 14.1. General Policy

14.1.-1 All procurement and contracting transactions shall be conducted in a manner that provides, to the maximum extent practical, open and free competition. All parties involved in the implementation of GCMHPs goals and objectives shall be alert to organizational conflicts of interest as well as noncompetitive practices among suppliers and contractors that may restrict or eliminate competition or otherwise restrain trade. 14.1.-2 Awards shall be made to the bidder or offeror whose bid or offer is responsive to the solicitation and is most advantageous to the GCMHPs achievement of its goals. Price, quality and other factors are considered in selecting suppliers and contractors. Solicitations shall clearly establish all requirements the bidder must fulfill in order for the bid or offer to be evaluated. Any bid or offer may be rejected when it is in GCMHPs best interest to do so.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL 14.1.-3 Requisitions for goods and services shall provide for all of the following: A clear and accurate description of the technical requirements of the material, product or service to be procured. In competitive
procurements, such description shall not contain features, which unduly restrict competition. Requirements that the bidder / offeror must fulfill all other factors to be used in evaluation bids or proposals. A description, whenever practical, of technical requirements including a range of acceptable standards. The specific features of brand name or service descriptions that bidders are required to meet when such items are included in the requisition. 14.1.-4 Contracts shall be made only with responsible contractors / suppliers who possess the potential ability to perform successfully under the terms and conditions of the proposed procurement. Consideration shall be given to such matters as contractor integrity, record of past performance, financial and technical resources or accessibility to other necessary resources. 14.1.-5 Cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various ways, including the comparison of price quotations submitted, market prices and similar indices, together with discounts. 14.1.-6 Procurement records and files for purchases other than small purchases shall include the following at the minimum: Basis for contractor / supplier selection. Justification for lack of competition when competitive bids or offers are not obtained. Section 5: Procurement and Contracting

Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL 14.1.-7 A system for contract administration shall be maintained to ensure contractor / suppliers conformance with the terms, conditions and specifications of the contract or supplying agreement and to ensure adequate and timely follow up of all purchases. GCMHP shall evaluate contractor/suppliers performance and document, as appropriate, whether contractor has met the terms, conditions and specifications of the contract. 14.1.-8 GCMHP shall include the following provisions in all contracts exceeding U.S. $ 10,000. Contracts shall contain contractual provisions or conditions that allow for administrative, contractual, or legal remedies in instances in which a contractor violates or breaches the contract terms, and provide for such remedial actions appropriately. Contracts shall contain suitable provisions for termination by the recipient (contractor), including the manner by which termination shall be effected and the basis of settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the
contractor/supplier. A bid guarantee from each bidder equivalent to five percent of the bid price shall be obtained. The bid guarantee shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder shall, upon acceptance of his bid, execute such contractual documents as may be required within the time specified. A performance bond on the part of the contractor for 10 % of the contract price.


Last modified

14.2. Purchasing and Contracting Ethics

14.2.-1 No employee shall participate in the selection, award, or administration of a contract if a real or apparent conflict of interest exists. Such a conflict would arise when any member of an employee immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in the contractor/supplier selected for procurement. 14.2.-2 The employees of GCMHP and its departments shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors/ suppliers, or other third parties.
14.3. Purchase Requisition

14.3.-1 The required purchases shall be based on an approved budget. 14.3.-2 A purchase requisition form shall be prepared by the employee in need of the purchases stating the description, date, strategic goal related to the purchase and quantity of the requested items. This policy is not applicable to small recurring purchases, as they may be made directly through petty cash imprest fund in accordance with GCMHP respective policies and procedures. 14.3.-3 The purchase requisition form shall be reviewed by the Head of Department and approved in accordance with the procurement
authorization limits. 14.3.-4 Requisitions related to fixed assets additions shall be approved by the Director General / Head of Department
14.3.-5 Requisitions related to civil work construction shall be approved by the Director General.


Last modified

14.4. Quotations
14.4.-1 GCMHP shall obtain at least three price quotations from different contractors and suppliers for all purchases above U.S. $ 1,000, and according to the following schedule: Procurement Amount in U.S. $ 1 50 Method Without purchase request according to the petty cash procedures (Sec. 4 Para.8). Purchases may be made from the approved vendors list, or three price quotations, required to be received through fax or mail. Three price quotations requested and received through fax or mail. Three price quotations received in sealed envelopes. Tender procedures shall be followed with approved suppliers. 3 bids at the minimum. Public tenders through local newspaper. 3 bids at the minimum.
51 1,000
1,001 2,500 2,501 5,000 5,001 -50,000
Above 50,000 (and all construction contracts)
14.4.-2 A request for quotation form shall be used to document the request for tender or quotation. 14.4.-3 Before the approval of request for quotations, purchase requests shall be properly reviewed and agreed with the budget by the Administrator. 14.4.-4 In satisfying the above quotation requirements, an individual procurement shall not be split into smaller procurements to override the procurements quotation limit requirements.
14.4.-5 The request for tender or quotation document must contain enough details to ensure that the supplier understands what has to be done, when


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL and where it is needed, and how much and on what terms he will be paid. It shall include at least the following: Details specification of the goods or services required The quantities required Delivery date, location and instructions Terms of payments Terms and conditions of contract Signature of an authorized person
14.4.-6 Opening of quotation envelopes shall be witnessed and initiated by the respective procurement committee (see below) in the presence of at least three persons. A summary shall be prepared for all quotations received. 14.4.-7 Price analysis (could be in a tabulation form) shall be made and documented through comparison of the price quotations submitted and market prices. This analysis shall be used as a base for supplier selection, taking into consideration the financial and technical aspects of the requirements. 14.4.-8 Procurement records shall include the basis for contractor / supplier selection, justification for lack of competition when competitive bids or offers are not obtained.


Last modified

14.5. Procurement Committees

14.5.-1 The procurement committees shall be formed to supervise and approve GCMHPs purchases with respect to type, quality, quantity and price before executing the purchase. Further, the best quotation shall be selected and approved by the committee. 14.5.-2 The procurement committees shall be formed as follows: Departmental Procurement Committee shall consist of the Head of Department, the department administrator and the requesting person. The Central Procurement Committee shall consist of the Director Assistant for Administration and Finance (DAAF), Financial Manager, Programs Coordinator and Head of the Department requesting the purchase. The committee may seek the help of a specialist, if needed. 14.5.-3 Each procurement committee shall appoint one of its members as the committee secretary for the committee clerical work, tabulation and analysis and record keeping. 14.5.-4 The Central Procurement Committee shall maintain its records with the Administration Department.


Last modified

14.6. Procurement and Contracting Authority Limits

14.6.-1 Authorization limits for contractors and suppliers selection are presented below. (Small recurring purchases may be excluded from this policy, as they may be made directly through petty cash imprest fund): Procurement Amount in U.S. $ 1 1,999 2,000-4,999 5,000 - 9,999 10,000 and above Required Level of Approval Department Procurement Committee Department Procurement Committee approved by the Director General Central Procurement Committee approved by the Director General Central Procurement Committee, Director General and Chairman of the Board.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL 14.6.-2 An individual procurement shall not be split into smaller purchases to override the procurements authority limits.
14.7. Approved Vendors List

14.7.-1 Approved vendors/suppliers list shall be maintained and circulated to all concerned employees to ensure that purchases are made at the best prices, payment terms and quality that are available in the market. The Director General shall approve additions, deletions or changes to the list. 14.7.-2 The Administration Department shall maintain files for the approved contractors / suppliers. The files shall contain price lists, available services, products and specifications, vender experience with the related products and services and history of dealings with GCMHP. 14.7.-3 The approved list of suppliers / contractor shall be regularly updated by the administration department, and approved by the Director General.
14.8. Purchase Orders

14.8.-1 A pre-numbered purchase order shall be used for each purchase of goods or services that exceed U.S. $ 100. Each purchase order shall be approved in writing and in advance by the proper level of management based on the procurement authorization limits, as to vendor, prices, quality of goods and quantity. 14.8.-2 The purchase order shall be in original and three copies: original goes to the supplier, a copy of the approved purchase order shall remain in the procurement committee file, a second copy shall be sent to the Administrator and a third copy to the person who will receive the purchased items. 14.8.-3 All purchase orders shall be pre-numbered and maintained by the Administration Department.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL 14.8.-4 An approved purchase requisition form, quotation analysis and other supporting documents (i.e. original quotations, special agreements with suppliers, etc...) shall accompany each purchase order.
14.9. Vendor / Contractor Selection

The procurement secretary shall prepare an analysis of quotations in a table form. This form shall be used to analyze the quotations received and conclude on the selected supplier, taking into consideration the financial and technical aspects of the requirements and the quotations.
14.10.Documentation of Large Purchases

Purchases of goods or services amounting to U.S. $ 10,000 or more must be covered by a purchasing agreement / contract. Such agreement shall cover the following: Description of service, material, work, etc. Total cost and payment schedule. Commencement and completion dates. Method of handling late payments.
Receiving Function
Procurement Committee shall authorize the function of receiving purchases to certain employee or committee, if necessary. No purchases above U.S. $ 100 shall be accepted without an approved purchase order. Before accepting any goods, they shall be physically counted by the person who is authorized to receive the purchases, inspected and agreed to purchase order specifications. The suppliers invoice shall be compared to the quotation or tender initially presented by the supplier.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL The person who receives the purchases shall complete the receiving section of the purchase order, or a receiving report shall be completed to document receiving of purchases. An official invoice shall be obtained from suppliers for each purchase before paying suppliers.


Last modified

Recording and Reporting of Purchases

The Administrator shall ensure the existence of all of the following supporting documents and shall review them before recording the procurement transaction into the accounting system. Copy of the approved purchase request. Price quotations. Approved purchase order. Documentation of the basis of vendor selection for all purchases of goods and services approved by the purchase committee, or by proper level of management. Purchase receiving report. Contractor approved payment certificate (in case of construction contracts). Supplier invoice and receipt voucher. The contract or agreement relevant to goods or services provided.
The Financial Manager shall ensure that all procurement control procedures are followed in conducting each procurement transaction. Any exception noted shall be promptly reported to the Director General.
After the completion of the Financial Manager reviews of the completeness and reliability of the procurement process, the procurement transaction shall be recorded into the accounting system under relevant strategic goal categories.
Posting procurement transactions shall be approved by the Financial Manager.


Last modified

Cash Payment Function

Before payment of contractor / suppliers invoice, each invoice shall be matched with the approved purchase order or contract and the receiving details with respect to type, price and quantity. All cash disbursements that exceed U.S. $ 100 shall be paid by checks. Paid invoices shall be stamped Paid to prevent duplicate payments. All applicable supporting documents shall be reviewed and signed by check signatories prior to signing checks. In addition, all other procedures related to cash payments and check disbursements shall be followed. The purchase request, purchase order, approved payment certificate, supplier invoice, check copy, and all other related documents shall be filed with the pre-numbered voucher to allow for easy future review and audit of such documents.
Construction Contracts
In addition to the above procurement and contracting policies, the following contracting policies should be followed: The performance bond shall be returned to the contractors upon work completion and submitting of a maintenance bond, when applicable. Upon the completion of the construction, the contractor shall provide a maintenance bond for a one year. The maintenance bond shall be at least 5% of the contract cost. The handing over shall be approved by a Handing Over Committee which may consist of the following members: Director General or his designee
Central Procurement Committee Section 5: Procurement and Contracting


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL An expert (an Engineer) Advance payment shall be granted to contractors based on the construction contract. A bond equivalent to the advance payment shall be obtained. GCMHP shall obtain an original tax invoice for the advance payment.


Last modified

15. Procurement Procedures

The following procedures provide guidelines for the GCMHP procurements, receiving and recording of goods and services: Required Forms and Documents Purchase request. Purchase order. Request for quotation. Price quotation analysis. Payment certificate. Receiving report (or a stamp Received on the Purchase Order).
15.1. Purchasing Procedures

The following procedures provide guidance for the purchasing function. Responsible Person Requesting Party 1. Procedures Determine goods and services according to planned activities. needed,
2.
Fills out a purchase request and send to the Administrator Ensures budget compliance and availability of cash and sends to Head of Department Ensures that purchase request agrees with the plan and support GCMHPs activities and signs the purchase request. Sends a copy of the purchase request to the appropriate procurement committee (departmental or central) Fills out a request for quotation form that contains enough details to ensure that suppliers / contractors understand what is needed. Seeks quotations. paragraph 3.4) (Subject to section 5
Administrator Head of Department/Programs Coordinator Administrator
3. 4.
5.
Procurement Committee Subject to (section 5 para. 3.5) Procurement Committee
6.
7. 8.
Upon receiving the contractors/ consultants/ suppliers responses, prepares a summary the quotations in a tabulation form. Draft for Discussion Only
Last modified


9.
Review and Signs the summary of vendors quotations form certifying that the sealed envelopes were opened in their presence. Indicate the justification. supplier selected and the
10.
Prepares a purchase order and obtains the required authorization (Refer to the Procurement Authorization Limits). Sec. 5 part 3.6. Administrator 11. Checks the significant terms and conditions to ensure the availability of cash at payment due date. Ensures that the purchase or preparation and approval procedures are in compliance with the GCMHP policies. Sends purchase order to supplier Prepares the applicable. procurement contract, if
Financial Manager
12.
Administrator
13. 14.
DAAF / Head of Department
15.
Reviews and approves the procurement contract and all related documents in accordance with the authority limits specified by GCMHP. Signs the procurement contract and all related supporting documentation (subject to section 5 authority limit.
Director General/ Head of Department
16.


Last modified

15.2. Receiving Procedures

The following procedures provide guidance for purchases receiving function. Responsible Person Procurement Committee Procedures 1. Assign the employee in charge of receiving the purchases based on the nature of the procured items. 2. Counts the delivered purchases, inspects them and compares them to the purchase order. 3. Matches the supplier invoice with the purchase order and signs the invoice. 4. In case the delivered purchases do not match the purchase order, makes a note of it and informs the supplier. 5. Prepares a receiving report or stamp the Purchase Order Received.
Receiving In-Charge


Last modified

15.3. Recording of Purchases

The following procedures provide a guideline for recording and reporting of purchase transactions. Responsible Person Administrator Procedures 1. Ensures the existence of suppliers invoice and purchase order and matches them with the receiving report / payment certificate/invoice. 2. Ensures that all purchases control procedures are followed in conducting each purchase transaction and reports any deviation to the Director General or his designee/Head of Department 3. Records the purchase transaction and updates the supplier accounts payable ledger. 4. Reviews and approves the accounting voucher of the purchase transaction and the related supporting documents. 5. Files all documents relating to the purchase transaction in the outstanding payments file until the due date.
Financial Manager
Administrator
Financial Manager
Administrator


Last modified

15.4. Payment Procedures

The following procedures provide guidelines for GCMHP cash payments transactions. Responsible Person Administrator Procedures 1. Matches the supplier invoice, purchase order, and the receiving report / payment certificate, to check for any differences. 2. At due date, prepares a check for the supplier. 3. Prepares a payment voucher to book the payment in the accounting software. Financial Manager (for Head Office and payment above U.S.$ 2,000)/Head of Department Authorized Signatories 4. Reviews all the above documents, matches the supplier invoice with the related agreement or contract and signs the payment voucher.
5. Match the check with the signed payment voucher and all related supporting documents before signing the check. 6. Hands the check to the supplier and obtains his signature on the payment voucher. 7. Records the payment voucher to the supplier account ledger, prints, signs and file.
Administrator


Last modified

15.5. Construction Contracting Procedures

The following procedures provide guidance for the construction activities performed by the GCMHP. Responsible Person Head of Requesting Department Director General Central Procurement Committee Authorized approval (Sec. 5 para 3.6) Central Procurement Committee Procedures 1. Determines the construction activities that shall be performed based on the approved work plan and budget. 2. Approves request 3. Fills out a request for quotation form that contains enough details regarding the work that need to be performed by the contractor. 4. Reviews and approves the request for quotations based on the authority limits. 5. Seeks request for quotations to the approved contractor. 6. If a tender is required (Sec. 5 para 3.4) advertisement in the local newspapers shall be placed. 7. Upon receiving the contractors responses, prepares a summary of the quotations in a tabulation form. 8. Reviews and signs the summary of quotation forms. 9. Signs the summary of contractors quotations form certifying that the sealed envelopes were opened in their presence. 10. Indicate the contractor selected and the selection justification in the summary of the vendors quotations. 11. Prepares a contract that includes all relevant technical specifications and payment schedule. 12. Review and sign the procurement contract
Director General


Last modified

15.6. Advance Payments to Contractors

The following procedures provide a guideline for the advance payment to contractors. Responsible Person Contractor Procedures 1. Sends a request for an advance payment based on the construction contract. 2. Prepares a payment certificate that shows only the advance payment after ensuring compliance with the construction contract. 3. Ensure availability of fund 4. Approves the payment certificate Financial Manager 5. Obtain a supplier invoice for the advance amount 6. Matches the supplier invoice with the payment certificate and advance amount as per the construction contract. 7. Prepares a check payable to contractor. 8. Prepares a payment voucher to book the payment in the accounting software. Authorized Signatories 9. Match the check with the signed payment voucher and all related supporting documents before signing the check. 10. Hands in the check to the contractor and obtains his signature on the payment voucher or obtain a receipt voucher from the contractor. 11. Record the payment voucher. 12. Files all documents relating to the purchase transaction in the outstanding payments file until the due date.
GCMHPs Engineer/Consultant
Financial Manager Director General
Administrator


Last modified

15.7. Interim Billing Procedures

The following procedures provide guidance for the interim billing of the construction work. Responsible Person Contractor Procedures 1. Provide a bill of quantity for the work completed to date and the cost of this work according to the approved contract. 2. Reviews and approves the work completed as shown on the bill of quantity. 3. Reviews and approves the contractors bill of quantity and prepares the payment certificate. Financial Manager 4. Reviews the payment certificate and compare it to the last payment certificate and to the accounting records. 5. Approves the payment certificate 6. Prepare payment to contractor following the procedures shown on the next paragraph. 7. Records cost of construction in the project in progress account linked to their respective costs center.
GCMHPs Engineer/Consultant
Director General Administrator


Last modified

15.8. Payments to Contractors

The following procedures provide guidelines for the cash payments to contractors. Responsible Person Financial Manager Procedures 1. Ensures existence of contractor invoice, bill of quantity, payment certificate and GCMHPs engineer/consultant approval. 2. Matches the certificate. invoice and the payment
3. Ensure proper computation of the amounts shown on the payment certificate including, amount payable to contractor, advance recovery and balance, and retention according to the term of the contract. Administrator 4. At due date, prepares a bank transfer order or a check for the contractor. 5. Prepares a payment voucher to book the payment in the accounting software. 6. Gets the check singed by the authorized signatories. 7. Calculates the retention and advance amounts to be recorded. 8. Match the check with the signed payment voucher and all related supporting documents before signing the check. 9. Hands the check to the contractor and obtains contractors signature on the payment voucher or obtain a receipt voucher from the contractor. 10. Records the payment voucher to the general ledger, prints, signs and files.
Authorized Signatories
Administrator
Administrator


Last modified

15.9. Project Handing over Procedures

The following procedures provide guidance for the construction project handing over function. Responsible Person Contractor Procedures 1. Request a preliminary handing over from the GCMHPs Engineer/Consultant. GCMHPs Engineer/Consultant Contractor 2. Inspect the work completed and prepare a snag list. 3. Upon completion of the work listed in the snag list, submit a request for testing GCMHPs Engineer/Consultant Handing Over Committee 4. Performs testing on the contractors work and provide his approval. 5. Reviews and approves the testing and accept the work performed by the contractor. Contractor GCMHPs Engineer/Consultant 6. Submit the final bill of quantity. 7. Reviews and approves the work completed as shown on the bill of quantity. 8. Reviews and approves the bill of quantity and prepares the final payment certificate. Contractor 9. Provides a maintenance bond issued by a local bank for the benefit of GCMHP Handing Over Committee 10. Approves the bill of quantity and final payment certificate. Financial Manager 11. Review the final payment certificate and
compare it to the previous payment certificate Section 5: Procurement and Contracting


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL and the accounting records. 12. Ensure the existence of maintenance bond 13. Ensure that there are no amounts due to or from the contractor other than the amount payable to the contractor as per the final payment
certificate. 14. Process the payment as specifies above .


Last modified
Section 6
Accounts Payable
Section 6: Accounts Payable


Last modified
1.
Purpose
The purpose of this section is to set guidelines for the accounting and control procedures of GCMHPs accounts payable.
2.
Scope
These guidelines shall be followed by GCMHP to account for and control accounts payable.
3.
Accounts Payable Policies
3.1. Accountability
All valid procurement transactions shall be accurately recorded in the accounts payable records and registers. The following shall support accounts payable input document: Approved purchase request. Price quotations. Approved summary of suppliers quotations, if applicable. Approved purchase order. Approved payment certificate to support the suppliers/contractors invoices. Approved suppliers invoice, and if any, zero VAT invoices shall be approved by the Ministry of Finance. Deduction at source certificate (or upon payment). Receiving report. Journal vouchers shall be prepared by the Administrator.


Last modified
ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL Payments, partial payments and other authorized adjustments to accounts payable shall be recorded against the related invoices in order to maintain accurate accounts.
3.2. Processing and Recording

The Administrator, at all times, shall maintain an open purchase orders file. This file shall contain all outstanding purchase orders, material and service requisitions and quotations summaries, if necessary. Each suppliers invoice received shall be checked by the Administrator against the following: Clerical accuracy. Agreement of description, specifications, unit cost and quantity received to the purchase order noting proper authorization. Comparison of the credit period and terms with those specified on the purchase order. The accounts payable record shall be updated daily Advance payment to the vendors shall be recorded as receivables and controlled in a manner that assures recoverability by offsetting these advances against vendors invoices.
3.3. Monitoring
A statement of account shall be obtained from all recurring suppliers at the end of each month or as needed. Based on the statement of account received, the Administrator shall prepare reconciliation with the accounts payable records. Any reconciling item(s) shall be investigated and promptly adjusted. Monthly accounts payable report shall be prepared to identify payments due for the period and to investigate any long outstanding balances.


Last modified
ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL At year-end, confirmations and statements of account shall be obtained from all contractors and suppliers, in order to confirm all outstanding balances. If confirmation balance does not agree with the suppliers balance as per the accounts payable record, reconciliation shall be prepared to resolve the differences.


Last modified


Section 7
Payroll Processing
Section 7: Payroll Processing


Last modified

1.
Purpose
The purpose of this document is to provide guidelines for payroll processing and payment and to ensure that payroll processing is accurate and is completed on a monthly basis.
2.
Scope
This section shall be followed in processing all GCMHP payroll transactions.
3.
Time Reporting
A payroll register indicating the employees name and other personal information, basic salary and other allowances and deductions, if any, shall be maintained. A monthly time sheet shall be prepared by each employee. All time sheets shall be approved by the employees direct supervisor and Head of Department. Timesheets shall be filled in order to show time spent according to strategic goals. Allocation of time to strategic goals shall be done by each department based on actual time reported on the monthly time sheets. Overtime shall be pre-approved in advance by the Director General or the Head of the Department prior to the actual overtime work, given that overtime is allowable and allocable cost.
4.
Payroll Preparation
Time sheet shall be submitted no later than the 25 of the month. A monthly payroll summary for each department shall be prepared. Such summary shall include the employee name, basic salary, number of hours worked during the months, allowances and deductions and the net amount to be paid.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL Payroll processing shall start by the 25th day of each month so that salaries are ready for payment by the end of the month. Transactions involving deductions from employees salary shall be processed promptly and reflected in the monthly payroll. Allowances and other compensations shall be reflected in the payroll in the same month they are due to the employees. The personal and payroll data is strictly confidential information and shall be restricted to authorized persons only. Payroll shall be recorded in the accounting records based on the approved payroll sheets categorized by GCMHPs strategic goals. Reconciliation must be made to ensure total salary classified by department equals total salary charges classified by strategic goals.
5.
Payroll Payments
Payroll payments shall be made through bank transfers to the employees bank accounts. Bank transferred shall be prepared monthly. No cash payment shall be made as payroll.


Last modified

6.
Payroll Processing and Payment Procedures

The following procedures provide guidelines for GCMHPs payroll processing and payment. Responsible Person Employee Direct Supervisor Administrator Procedures 1. Prepare the monthly time sheet on a daily basis categorized by strategic goals. 2. Approves the time sheet and send to Administrator. 3. Compute percentage of total time spent on each strategic goal. 4. Prepare a summary showing the time of each staff allocated to strategic goals and send to Head of Department together with individual time sheets. Head of Department Personnel Manager 5. Approve time sheets and summary sheet and send it to Personnel Manager. 6. Apply on a pro-rata basis each employees salary to their percentage of time allocated to strategic goals. 7. Prepares payroll sheets for each department and send it to the Financial Manager 8. Prepares payroll sheet by strategic goals and sends it to the Financial Manager Financial Manager 9. Reviews payroll sheet based on strategic goals and reconciles with all departments payroll sheets. 10. Matches and reconciles the monthly payroll summary sheet with the previous month payroll summary. 11. Prepares a bank transfer sheet containing the names of employees, their bank account numbers and net salaries. Director General (his designee) 12. Reviews and approves the monthly payroll sheets 13. Reviews and approves the reconciliation of the Draft for Discussion Only
Last modified


ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL payroll summary with the previous month. Investigates any material differences and reviews the approval of such differences. ) 14. Reviews the bank transfer sheet. 15. Approves and signs the bank transfer sheet, and the accompanying payroll sheet and forwards it to authorized signatories for signature. Authorized Signatories Financial Manager 16. Sign the bank transfer sheet and the payroll summary as evidence of their review. 17. Send the bank transfer sheet to the bank. 18. Forward payroll journal entry to the administrator for recording. Administrator Personnel Manager 19. Record payroll transaction (journal entry) 20. Prepare salary slips for each employee
7.
Employees benefits
The provision for employees severance pay shall be computed in accordance with the Labor Law. Provision for saving shall be computed in accordance with GCMHP policy. These provisions must be maintained in a special interest bearing bank account that shall be restricted only for payments of severance pay and saving account. Funding the severance pay account and the saving fund should occur on monthly basis. Health insurance costs shall be paid in accordance with GCMHPs policies. Income tax expenses shall be paid in accordance with the prevailing income tax law. Employees benefits shall be allocated to strategic goals based on actual salary allocation in the same month.


Last modified

7.1. Travel Expenses

All travel missions outside Palestine shall be authorized and approved in advance by the Director General. The Head of Department will specify in the request to the Director General the strategic goal(s) covered under the travel mission. The Financial Manager shall ensure the availability of budget All employees should be issued an economy class ticket at all times, business class tickets must be justified. GCMHP should pay business related transportation costs incurred during travel. GCMHP should pay daily allowance for employees for their personal expenses during the mission. The daily allowance will vary depending on the destination and position. The daily allowance shall specify the cost covered under such allowance. GCMHP shall develop daily allowance policy depending on the cost of living at the specified country and may differ from country to another. The cost of accommodation of the employees should be approved in advance by the Director General. When the cost of business trip is covered by donor, business incremental costs not covered by donors will be reimbursed. GCMHP may pay, at the employees request, travel advances. This advance should not exceed estimated travel expenses. All travel advances requests are to be approved by the Director General. Travel expenses should be allocated properly to the related strategic goals after getting approved by the Head of Department to which traveling employee belongs.


Last modified

Responsible Person Employee 1.
Procedures Documents the travel expenses in a Travel Summary Report and forwards it to Administrator. Reviews the report. The Travel Summary Report should show the following information: The duration of travel (starting date and ending date). The places where the employee had gone. The purpose of the mission. The cost of the travel.
Director Assistant for Administration and Finance
2.
Director General
3.
Reviews and approves the Travel Summary Report. Prepare check signatories. Sign check Hand in check to employees and send to authorized
Administrator Authorized signatories Administrator
4. 5. 6.
7.2. Foreign Assistants/Consultants

GCMHP should consider preparing a contract for foreign assistants who work for GCMHP which shall include: Job Description. Compensating rate per day including lodging and traveling Other costs covered The payment terms.
GCMHP should determine the activities covered by each foreign assistant/consultant.
The Head of Department shall ensure that assignment is budgeted for. At the end of each month the assistant/consultant should report his/her work and the related expenses in a standard summary report.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL The summary report shall be reviewed by the Head of Department at which the foreign assistant/consultant works. The Director General approves all reports The summary reports should be transferred to the Administrator to arrange for payment in accordance with GCMHPs policy.


Last modified

8.
Human Resources
8.1. Purpose
The purpose of this document is to provide guidelines for GCMHPs activities relating to personnel.
8.2. Scope
These policies and procedures are applicable to GCMHPs personnel functions.
8.3. Description 8.3.1. Recruitment

Hiring of employees should be made in accordance with the current and future needs of GCMHP in light of funded budget. Hiring of employees should be performed according to certain criteria and standards to ensure attracting and retaining highly qualified persons. Such standards should be based on the following: Education. Level of experience. Personality.
The recommendation for recruiting and terminating employees must be made by the Recruitment Committee. Final decision is made by the Director General.
8.3.2. Recruiting Channels

Recruiting of employees can be made through the following channels: Universities and other educational institutions. Advertisements in newspapers and magazines. Personal references.
All applicants for jobs should complete an application form.


Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL The application forms should be reviewed to select the best candidates for interview. The Recruitment Committee should interview the selected candidates and decide upon the best candidate. The recommendation of the selection shall be approved by the Director General. The Recruitment Committee should document its recommendations concerning candidates on an interview form. The interview form should be signed by the Recruitment Committee in case of hiring the candidate. Upon the approval for hiring a certain candidate, an employment contract must be extended to that candidate. The employment contract is signed by the employee and the Director General Each employee at GCMHP should have an up-to-date job description. Job description for key positions should be approved by the Director General. Job descriptions for new positions must be approved by the Director General before recruiting efforts begin. The job description should consist of the followings: Job name. Job objective. Responsibilities and reports to be prepared. Certificates and experience required. Other missions concerning that particular job.
When an employee starts his work, the Personnel Department opens a personal file for the employee and updates the system so that the employee will be listed on the payroll sheet.


Last modified

8.4. Employees Personal Files

For each employee there should be a personal file containing the following documents: Employment offer or contract signed by the employee and GCMHP management. Qualificationsdocuments. ID copy, number of children, and any other dependants if any. Salary and salary adjustment. Employee bank name, account, and a copy of the bank card. Copies of employees evaluation results. Any absence documentation such as vacation and leave requests. educational degree, experience, and related
The Personnel Manager shall have the responsibility for keeping and maintaining the employees personnel files. Employees personnel files have confidential information, thus they should be kept in a safe place where only the designated persons can adjust or change this information.
8.5. Consistency and Fairness in Applying Policies and Procedures

GCMHP shall ensure fairness in the implementation of policies and procedures pertaining to applicants and newly hired staff, such as in the application of screening and short listing requirements and the review of factors considered for passing training/probationary requirements.
8.6. Employment Contracts

Once a candidate has been selected, a contract has to be prepared and signed by the Director General and forwarded to the candidate. The contract should include information relating to the position, job Section 7: Payroll Processing

Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL description, salary, allowances, benefits, vacation, period of contract, and any other related information. The candidate is required to sign and return one copy of the contract to GCMHP as a sign of acceptance of the contract. The second copy of the contract should be retained by the candidate. Employment contracts should remain in effect until the expiration date of the contract unless there was a violation of GCMHPs internal rules or the prevailing Labor Law. Upon renewal of the contract, both parties should sign the new contract one month before the contracts expiration date. Any party wishing to cancel or terminate the contract should notify the other party of its intentions at least one month in advance.
8.7. Probationary Period

All new employees will be subject to a probationary period for the first three months of their employment with GCMHP.


Last modified
Section 8
Fixed Assets
Section 8: Fixed Assets


Last modified
1.
Purpose
The purpose of this section is to ensure that fixed assets are: Properly reported. Periodically substantiated. Covered by adequate protection from physical loss, damage, or deterioration. Physically safeguarded.
2.
Scope
This section shall be followed in processing, recording and maintaining all of GCMHPs fixed assets.
3.
Purchase of Fixed Assets

GCMHPs procurement policies and procedures shall be followed in the procurement of fixed assets. The limits of authority for addition, repair, and maintenance expenses to the fixed assets should be in accordance with the authorization limits set forth in the procurement system section of this report. Fixed assets additions shall be based on the approved annual budget of each department.
4.
Capitalization Policy
Generally, a purchase of an asset should be capitalized if both of following conditions are met: The unit cost is more than U.S. $ 100 Its useful life is more than twelve months.
Major repairs and maintenance should be capitalized, if all the following conditions are met: Cost of repair and maintenance exceeds U.S.$ 300 Draft for Discussion Only
Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL The productive life of the asset is increased by more than 12 months.
The repair and maintenance costs have not resulted from technical errors.
The capitalization threshold and useful lives criteria shall entail the establishment of a minimum value below which assets are expensed. The capitalization policy shall also entail establishing controls for assets that are below the capitalization threshold, so that the physical movement and location of the asset are controlled.
To reduce the risk of exposing fixed assets that are below the capitalization threshold from being under a control free environment which could result in possible unauthorized movements and changes in the location, each department shall delegate the responsibility of control over these assets to a person.
5.
Accountability
5.1. Fixed Assets Recording and Processing

Generally, a purchase of an asset shall be recorded as capitalized assets when the assets are received by GCMHP. Fixed assets classifications should be followed. New additions to classes of assets should be approved by the Director General. In case of purchasing assets for all departments, the total cost incurred shall be allocated to each department based on their original request within the budget limit. The cost of an item of property and equipment comprises its purchase price, including all directly attributable costs of bringing the asset to the working condition for its intended use. Any trade-in and other discounts are deducted in arriving at the purchase price. A fixed asset register shall be maintained for each department. Draft for Discussion Only
Last modified

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL A comprehensive fixed assets register of GCMHP as a whole shall be maintained by the Administration Department which should include the sum of each department fixed assets. The registers shall include the following data for each asset item: Identification number Serial number Description of item Item location Date of purchase Cost Depreciation rate Depreciation expense for the year Accumulated depreciation Department using the assets Status (used, under maintenance, etc.) Net book value
The fixed asset register shall be regularly updated for additions, disposals, write-offs and transfers.
An identification number shall be assigned and tagged to all fixed asset items by the department concerned.
At year-end, a fixed assets summary shall be prepared (generated) outlining major categories' cost,
A year end count committee shall be appointed by the Director General. An annual fixed assets physical count shall be conducted and the results shall be documented and compared with the fixed assets per register and the accounting records. Any differences shall be investigated and resolved.
Once any asset is disposed or sold it shall be removed from the register. Fully depreciated fixed assets shall be properly accounted for. Draft for Discussion Only
Last modified

5.2. Fixed Assets Disposal

The Director General is responsible for any disposal and/or write-off of fixed assets. The methods of disposing fixed assets are extremely important and are designed to eliminate possibilities of fraud. Disposal may be
accomplished by sales to others or scrap. All fixed assets disposal and write-off transactions should be supported by an Assets Disposal Report (ADR). The ADR should include all details pertaining to the subject asset. For sold fixed assets, depreciation expenses should be computed up to the date of sale. Calculation of, and accounting for gains or losses on disposal of fixed assets should be made by the Administrator and reviewed and approved by the Financial Manager.
5.2.1. Description of Task

The following procedures provide guideline for disposal of fixed asset.
5.2.2. Required Forms and Documents

Assets Disposal Report.


Last modified
5.2.3. Procedures
Responsible Person Administrator 1. Procedures Identifies the assets to be scrapped, fills in an Asset Disposal Report (ADR) and forwards to the Head of Department or DAAF for Head Office. Approves the ADR or forward to the Director General/Central Procurement Committee. The Disposal Committee is responsible for reviewing and suggesting the disposal (sale and write-off) of fixed assets
Head of Department/DAAF Disposal Committee
2. 3.
Director General Administrator
4. Approves the ADR. 5. 6. Updates accounting records and the Fixed Assets Register. Send to the Administration Department Update GCMHP fixed assets register
DAAF
7.
6.
Fixed Assets Insurance Policy

Fixed assets should be covered by an insurance policy. The insurance should cover the replacement cost of the asset or at least the net book value.


Last modified

Section 9
Revenues
Section 9: Revenues

Last modified
1.
Purpose
The purpose of this section is set policies and procedures controls needed over GCMHPs revenues.
2.
Scope
This section shall be followed in processing and recording all of GCMHPs revenues. Grant revenues policies and procedures are covered in a separate manual.
3.
Grant Revenues
Grant revenues policies and procedures are covered in a separate manual.
4.
Local Operating Revenues Sources

Clinic Revenues including pharmacy Training Revenues Research Revenues Interest Revenues Planned income generating projects
5.
Accountability
All collected revenues shall be supported by a receipt vouchers authorized pre-stamped by the Ministry of Interior. Receipt vouchers shall be pre-numbered and shall consist of original and two copies: original goes to the payer, one copy remains with the department collecting the cash to be used for updating the accounting record and the second copy is kept in the receipt voucher book. Unused receipts vouchers shall be maintained by the administration department. The administration department shall review used and returned receipt vouchers to ensure their completeness.
Section 9: Revenues

Last modified
ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL Each department shall use one receipt voucher book at a time. Upon full use of the receipt voucher book, a request for a new receipt voucher book shall be made by the Head of the Department. The administration department shall control handing in receipt vouchers books by book number and range of receipts vouchers included in each book. A summary of daily receipts shall be prepared by the Administrator. Cash collected shall be deposited into the bank daily. Cash collected must not be used to pay for GCMHPs expenses. Receipts voucher shall be designed to accommodate more than one currency receipts and more than one type of revenues. Cancelled receipt vouchers shall be kept in the receipt voucher book together with the two copies and marked clearly as Cancelled and accounted for when Receipt Voucher book is returned to the Administration Department.
6.
Local Operating Revenues and Collection Procedures

The following procedures provide guidelines for GCMHPs local operating revenues and collection procedures.
Section 9: Revenues

Last modified
Responsible Person Cash Custodian
Procedures 1. Collect cash based on management approved rate for the services provided. 2. Issue a receipt voucher and hand in original to payer (Receipt vouchers shall be signed by the Head of Department or the Financial Manager when cash is received by Head Office. 3. Prepare summary at the end of the day for all cash collected, submitted to the Administrator (deposited to the bank) and remaining cash balance at the end of the day. 4. Send summary with copy of receipt vouchers to the Administrator.
Administrator
5. On a daily basis, receives cash from the cash custodian after being counted. 6. Ensure that collection is in accordance with management approved rate of charge. 7. Deposits cash/checks into the related bank account.
Financial Manager
8. Matches the deposit slips with the receipt voucher to ensure the total cash and checks collected were deposited subsequently in the bank. If the amount received through a fund transfer, agree the bank notice to the receipt voucher. 9. Ensures that there is no missing or unaccounted for receipts by ensuring serial numbering sequence.
Administrator
10. Record revenues transactions accounting software.
into
the
Section 9: Revenues

Last modified

Section 10
Allocation of General Costs
Section 10: Allocation of General Costs


Last modified
1.
Purpose
The purpose of this section is to ensure that general costs are properly allocated to GCMHP goals.
2.
Scope
This section shall be followed in processing, recording and maintaining all of GCMHPs general costs.
3.
General Costs
General costs are expenses which are incurred for common or joint objectives and relate to more than one strategic goals, such as rent expenses, telephone and fax expenses, utilities, office supplies, maintenance, depreciation expenses salaries of employees who perform functions for more than a strategic goal. These costs shall be fairly allocated among the appropriate strategic goals. GCMHP total costs for the period (reporting period) should be separated as either direct or general (indirect). Costs that serve more than one strategic goal shall be identified as general shared costs and allocated based on an appropriate base. (total direct costs, direct salaries and wages, staff hours applied, square feet used, population served, and the like) Allocation of common costs may require the accumulation of such costs into separate cost groupings, which then are allocated individually to the benefiting strategic goal by means of a common cost allocation base(s). The grouping shall be established so as to permit the allocation of each grouping on the basis of benefits provided to achievement of strategic goal.


Last modified
ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL Each grouping should constitute a pool of expenses that are of like character in terms of the strategic goal they benefit and in terms of the allocation base which best measures the relative benefits provided to each strategic goal.


Last modified
APPENDIX I: CHART OF ACCOUNTS

The chart of account structure is as follows:
Fund type (restricted/unrestricted ) XX Strategic Goal XXXX
Account XXXXX
Type
Account Number
Account Description
Assets Current Assets 10000 11000 12000 12900 13000 14000 14900 15000 15500 Fixed Assets 16000 17000 Projects in Progress 18000 Investment in Associates 19000
CHART OF ACCOUNTS
Cash on hand Cash at banks Contribution receivables Provision for doubtful accounts Investments Inventory Provision for obsolete items Other current assets Inter-department accounts Fixed assets Accumulated depreciation Projects in progress
Investment in associates
Last modified
Liabilities and Net Assets Current Liabilities 21000 22000 23000 24000 25000 Long Term Liabilities 26000 26500 27000 28000 Net Assets 29000 Revenues 31000 32000 33000 34000 35000 Expenses 41000 42000 42050 42080 42100
CHART OF ACCOUNTS
Accounts payable Current portion of long term loans Provision for employees' benefits Accrual expenses Temporarily restricted contributions
Employees' end of service benefits Deferred revenues Other employees' accruals Long term loans Unrestricted Net Assets Consortium donors Non-consortium donors Local donors Local revenues Other revenues Projects' related expenses (direct expenses) General and administrative expenses Stationery and Printing Costs Consumable Supplies and Training Materials Telecommunications and Leased Line Network
Last modified
42120 42150 42180 42200 42220 42250 42280 42300 42320 42350 42380 42400 42420 42450 42480 42500 42520 42550 42580 42600 42620 42650 42680 42700 42720 43000 43050
CHART OF ACCOUNTS
Office Equipment Maintenance Magazines, Journals and Newspapers Media, Publicity and Publications Computer Software (MIS / System) Postage and Shipping Equipment and Hall Rental Expenses Local Travel Costs Vehicles Expenses (Fuel, License, Insurance and Maintenance) Rent of Premises and Utilities Utilities (including water & electricity and renovation) Medicine and EEG Supplies Professional Audit and Legal Fees Expert Trainers and Consultants Fees Training Posts (Diploma students) Translation Fees Workshop Materials Public Awareness Discussions Discussions with Focus Groups Conferences and Seminar Expenses University and Training Costs ( Staff Capacity Building ) Volunteer Expenses University Support Fees (Islamic University / Diploma) Academic Board Planning Meetings International Lobbying and Fund Raising Expenses Evaluation and Monitoring Staff expenses Salaries, wages and related
Last modified
43100 43150 43200 43250 43300 44000
expenses End of service benefits Employees saving fund Employees vacations Training expenses Insurance expense Other expenses (Miscellaneous)
The Administrator shall us the above chart of accounts. Any changes must be done centrally through the Financial Manager.
CHART OF ACCOUNTS

Last modified

Accounting and Internal Control Procedures Manual Revised November 21

Diunggah oleh

Informasi Dokumen

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Accounting and Internal Control Procedures Manual Revised November 21

Diunggah oleh

Hak Cipta:

Format Tersedia

Gaza Community Mental Health Programme

ACCOUNTING AND INTERNAL CONTROL POLICIES AND PROCEDURES MANUAL

Draft for Discussion Only

Gaza Community Mental Health Programme

Draft for Discussion Only

Gaza Community Mental Health Programme

10.1. 10.2. 11.

15.1. 15.2. 15.3. 15.4. 15.5. 15.6. 15.7. 15.8. 15.9.

Draft for Discussion Only

Gaza Community Mental Health Programme

Draft for Discussion Only

Gaza Community Mental Health Programme

APPENDIX I: CHART OF ACCOUNTS .................................................................................... 112

Draft for Discussion Only

Gaza Community Mental Health Programme

Gaza Community Mental Health Programme

Draft for Discussion Only

Gaza Community Mental Health Programme

GCMHPs organizational chart is presented below:

Draft for Discussion Only

Director General (DG)

Deputy Director General

Project Management and Fund Raising

Public Relation Unit

Video Unit Strategic Goals

IT Unit Strategic Goals

Education, Training & Research Department

Women Empowerment Department

Draft for Discussion Only

Gaza Community Mental Health Programme

Gaza Community Mental Health Programme

Accounting and Internal Control Policies and Procedures Manual

Section 1: Accounting Policies

Draft for Discussion Only 8

Gaza Community Mental Health Programme

3.1. Revenues and Expenses

Section 1: Accounting Policies

Draft for Discussion Only 9

Gaza Community Mental Health Programme

3.2. Cash, Bank and Advances

3.3. Property and Equipment

Draft for Discussion Only 10

Gaza Community Mental Health Programme

3.4. Accounts Receivables

3.5. Investment in Associates

Draft for Discussion Only 11

Gaza Community Mental Health Programme

3.6. Accounts Payable & Accruals

3.7. Basic Functional Currency and Foreign Currencies

Section 1: Accounting Policies

Draft for Discussion Only 12

Gaza Community Mental Health Programme

Gaza Community Mental Health Programme

Accounting and Financial Reporting

Section 2: Accounting and Financial Reporting

Draft for Discussion Only

Gaza Community Mental Health Programme

Section 2: Accounting and Financial Reporting

Draft for Discussion Only

Gaza Community Mental Health Programme

STRUCTURE OF THE GCMHPS ACCOUNTING SYSTEM

Property and Equipment

Section 2: Accounting and Financial Reporting

Draft for Discussion Only