2. Table of contents
1. Reporting Period
2. Financial Reports Requirements
3. Disbursement Request Requirements
4. Financial Report
3. REPORTING PERIOD
⢠Financial reports for each month must reach FTFZ
offices by the XX of every month. The delay in
submitting the financial report will also delay the
disbursement for the next month. Any unutilized
balances will be deducted from the next
disbursement.
⢠Disbursement requests are to reach FTFZ offices
by the XX of every month. This ensures enough
time to process advance request for next month.
4. Requirements for a Complete Financial
Report (FR)
⢠Cover Letter- Every FR must be accompanied by a cover
letter which should be on a letterhead, signed by
authorized signatories and stamped by the
organizational stamp. The letter should state the
month being reported, the total expenditure being
claimed & and should have the following statement:
ââWe certify that the amount claimed in this report has
been wholly and necessarily incurred for the purpose of
and in compliance with the agreement and have not
been previously claimedââ.
5. Requirements for a Complete Financial
Report (FR)
⢠FR Summary- is a summary of all the expenses which have
been reported, it should be signed, stamped and state the
month of the report. The summary is linked to the detailed
FR
⢠FR Detailed report- it shows the detailed report of all
expenses incurred line item by line item and is compared
against the budget for that particular month. The detailed
report should be stamped and signed by 3 different people
(prepared by, verified by & certified by)
⢠cash reconciliation for those who keep cash , (2)and that
cash and bank balance should equal balance on financial
report.
6. Requirements for a Complete Financial
Report (FR)
⢠Bank reconciliation and Bank Statement- a
monthly bank reconciliation should accompany
the FR every month and a bank statement
attached. The bank reconciliation should reflect
the same balances as the bank statements .
⢠Bank charges- a schedule or summary of bank
charges claimed should support the bank charges
expenses as well as the bank statement for that
particular month. A ledger printout for bank
charges can be used instead of a schedule.
7. Requirements for a Complete Financial
Report (FR)
⢠Salaries- supporting documents for salaries expenses
should be, pay slips, timesheets which are signed and
authorized, and stamped bank transfers.
⢠Other Expenses, e.g. utilities, communication, original
invoices and original receipts should be submitted.
Communication âno juice cards are to be used, FTFZ
require you buy your airtime in bulk according to your
budget and get an invoice and receipt for the airtime
and when you issue out a person can sign an
acknowledgement of receiving the airtime. Statutory
payments (proof of payment) and a schedules are
required to support the expense
8. Requirements for a Complete Financial
Report (FR)
⢠Travel expenses- Fuel ledgers and vehicle
logbooks are to be sent to FTFZ by the XXth every
month. For those Partners which do not get
coupons, a receipt or invoice of the fuel
purchased should agree to the logbook as well as
the fuel ledger and the trip should have been
authorized. If there is a vehicle tracking system a
print for the month must be matched with the
logbook and submitted. Spot checks of fuel
coupons and fuel kept in drums will be done on
site visits and this should agree to the balance on
the ledger.
9. Requirements for a Complete Financial
Report (FR)
⢠Perdiem- An authorized outreach/trip schedule should
accompany perdiem claims and the dates and Partners
visited should be the same as those on the perdiem claims
of individuals and the vehicle tracking system. The new
perdiem rates should be used and an individual should
claim his/her own perdiem and acknowledge receipt of the
money received and sign for it. If the money has been
deposited, a deposit slip is to be attached to the perdiem
claim form. Daily outreach allowance is $xx.
⢠Vehicle expenses- invoice & receipts for vehicle minor
repairs should be submitted. Tollgate tickets accompanied
by a route list which should match the outreach schedule.
10. Requirements for a Complete Financial
Report (FR)
⢠Facilitation Fees- should be supported by contract or letter
of invitation of the facilitator, attendance register which has
been signed by the participants and acknowledgement of
receipt of the payment
⢠Peer Counselor Allowance- Timesheets of the peer
counselors should be signed and authorized. An
acknowledgement of receipt of the payment should also be
attached
⢠Statutory Payments- payments for every month should be
submitted together with Financial Reports. FTFZ is not
liable in an event were a Partner is found defaulting the
authorities and other statutory payments.
11. Requirements for a Complete Financial
Report (FR)
⢠Programme Reports- the reports should be
submitted by the xxth of every month and a
thorough check of all activities should be done
and should match the expenses in the
Financial report.
12. Requirements for a Complete Financial
Report (FR)
⢠Please check the following points before submission:
a) Total expenses are equal in the following sheet:
⢠Detailed sheet = Summary
b) Initial balance of the month of âXâ is equal to Closing balance of the
previous month in the following sheets:
⢠c) All the documents above mentioned are signed by the following
persons:
⢠Person who prepared, person who reviewed and person who certified
the documents
⢠Segregation of duties is fully required to minimize the risk of error and
fraud and to promptly detect them
13. Requirements for a Complete
Disbursement Request (DR)
⢠Cover Letter- Letter- Every DR should be
accompanied by a cover letter which should
be on a letterhead, signed by authorized
signatories and stamped by the organizational
stamp. The letter should state the month of
the request, the amount being requested and
banking details which shows the account
name, Bank name, Branch, Sort Code and
account number.
14. Requirements for a Complete
Disbursement Request (DR)
⢠Disbursement Request â the request should be stamped, signed
and states the month of the request. It should show the opening
balance, which is unutilized balance from the previous advance
given. The balance should agree to the balance FTFZ has in our
books. If there are any outstanding obligations from prior months,
these should be listed so that we wont deduct the whole amount.
The planned expenditure from agreed budget should be claimed
every month in full to those who do not get coupons and to the
Partners which get coupons, it will be the planned budget less fuel.
⢠* No disbursement will be processed unless all outstanding
reconciliations have been reconciled and any outstanding balance
will be deducted from the next disbursement. Disbursement
request to reach FTFZ office by the xxth of every month
15. Requirements for a Complete
Disbursement Request (DR)
Site submits
Disbursement
Request (DR) to
FTFZ
FTFZ reviews and
approves DR and
make
disbursement
Site receives the
fund from FTFZ
16. Challenges that FTFZ faces
a) Incomplete reports
Not signed
Missing supporting documents
Unorganized paper work
Incomplete and unauthorized documents
b) Late submissions
c) Unauthorized budget reallocations. Claiming what is not on the
budget and claiming more than the budget.
d) High cash in hand balances and delayed acquittals
e) No or poor data triangulation.
f) Disallowable, unallowable, Unreasonable or unjustifiable
expenses.
17. SUPPORTING DOCUMENTS
⢠- Must be original
⢠-No photocopies
⢠- No Proforma invoices
⢠- No faxes
⢠- Every payment should have an invoice ,
company official order, and a receipt of
payment or a copy of the bank transfer letter
18. SOLUTIONS WHEN OVER THE BUDGET
⢠- seek permission to use savings from under
spent budget line
⢠- reduce or postpone some activities
⢠- use reserves to fund the shortfall