This presentation is about Finance, hope you useful for you.

1. ISLAMIC REPUBLIC OF AFGHANISTAN
MINISTRY OF AGRICULTURE, IRRIGAITON & LIVESTOCK
FINANCE & ACCOUNTING DIRECTORATE
Overview of the Government Financial Management
Systems and Procedures
19 April 2016

2.  How A Project Gets on Budget Decree
 Steps In Financial Execution
 Graphical Representation of Financial Execution
 Request for Extra Budget
 Functions of Finance & Accounting Directorate(F&A)
 Q&A Session
Agenda

3. How a Project Gets on Budgeted?
MAIL
Financial
Agreement
1. Signing of MOU/Grant Agreement
2. Opening Special Account in Da Afghanistan Bank
Donor
MoF
Special Account in
DAB

4. Chart of Accounts
• Opening the Designated Account
• Requesting for Project Codes in CoA
• Creating New Fund code in CoA
– OFWMP have the following Components
• On-Farm Water Management
• Institutional strengthening and capacity building
• Project management, coordination, monitoring &
evaluation
• Support for Productivity Enhancement

5. 1. Afghanistan Reconstruction Trust Funds (ARTF/WB) getting into a contract
with the client
2. Preparing allottement (B27 Form)
3. Submission of the allotment to the MoF to be processed
4. Payment order (M16)
5. MoF issues Cheque to Afghanistan Bank to release funds to the client
6. Da Afghanistan Bank wires the payment to the client’s Bank Account
Steps in Financial Execution

6. Flow Chart for Financial Execution
1. Receipt of contract made between OFWMP/WB and the client
2. Preparing Allottement (B-27 Form)
3. Allottement Submitted to MoF for Approval
4. Payment Order (M16)
if
Accepted
Rejected
5. MoF Issuing Cheque to DAB for Wire Transfer
6. Wire Transfer to Client Account

7. • B27 from
• Cover letter
• Project Coding Sheet form
• B20 form
• Commitment form
• Vendor form/registration of the client account number and TIN
• Copy of contract
Supporting document attached with the allotment

8. • M16 form
• Company Invoice
• Treasury form / Retention Form
• Request for payment (from the client and approved by MAIL)
• Copies of allotment and the contract
• Copies of bank guarantee or collateral
Supporting document required to make a payment
through MoF

9. Supporting document required to make a payment
through MoF
• Final Handing Over Certificate
• Official Letter for Assigned Evaluation Committee
• Final Handing Over Report
• Evaluation Committee Final Report
• Copy of Bank Account
• Copy of Vender Form

10. 10-20Working Days
How long does it take to make the payment to a
client?

13. What Happens if a Project Needs More Budget?
If the project disburses all of its budget and requires more budget, then can
we request MoF for more Budget?
MOF allows us to request for extra budget in mad term review during the
year, if budget is available in the total grant.
i. MAIL will send a letter to MoF for requesting the extra budget
ii. It will take 18-25 Working Days to receive Extra Budget

14. Functions of Finance & Accounting Directorate
 Checking and Controlling Financial Documents
 Financial Reporting of the Project
 Resolving Project Issues with MOF or donor
 Supporting Project Finance Team in Document Preparation Phase
 Providing Access to the project to use Finance & Accounting Directorate
Database

15. Goods, Services and Salary
 Goods
 Goods are classified in two category
 Fixed Asset
 Consumable goods, Fuel, oil etc.

16. Fixed Assets
 Valid Contract
 Expenses Report
 Company invoice
 Peshnihad for handover of goods
 M7 form
 Goods Received Notes
 Technical verification and Evaluation form( ‫اجناس‬ ‫ارزیابی‬ ‫گذاریش‬
)

17. Conti…
 AISA valid License
 Vendor form
 Scan Copy of Bank Card (Remittance Letter)
 Retention Money (Taminat)
 Performance Guarantee (in some contract applicable)
 Liquidated Damages (Late delivery penalty )

18. Consumable goods (Fuel)
 Valid Contract
 Expenses report
 Expenses request/ Authorization form
 M7 within contract valid date or Register no:
 Invoice (within contract date)
 Consumable records of fuel
 Bills (Bills issued on daily base to each vehicle)

19. Conti..
 Log Books of Vehicle, Tractors and Generator.
 Valid AISA license
 Scan copy of Bank Card.
 Vendor form

20. Services (Rental Vehicle)
 Valid contract
 AISA license
 Scan Copy of Bank Account
 Expense Report
 Expenses request/ Authorization form
 Invoice
 Time sheet for each Vehicle
 Log Book for each Vehicle

21. Services (internet)
 Valid Contract
 Expense Report
 Invoice of company
 Internet service report
 Valid AISA license
 Scan copy of Bank Account

22. Thank You
?