for financial sector

1. RECEIPT AND PAYMENT
PROCEDURES IN PUBLIC
SERVICE

2. INTRODUCTION
PAYMENT PROCEDURES
 MEANING AND TYPES OF VOUCHERS
 A voucher is a documentary evidence of payment
or receipt of money, which is available for future
reference and for accounting and auditing
purposes

3. Types of vouchers
 Payment voucher: it is used to support any
disbursement of money.
 Receipt voucher: raised to support the receipt of
money.
 Adjustment voucher: journal vouchers used for
either the correction of errors or the transfer of
fund from one account to another without actual
receipt or payment of cash.

4. Uses of journal voucher
 Correction of accounting errors
 Payment for inter- ministerial services
 Ultimate allocation of unallocated stores
 Opening of new accounts
 Closing of old accounts

5. PAYMENT PROCEDURE
IN THE PUBLIC SECTORS
 Request from the section or officer that needs the
items
 Approval from the appropriate authority
 Ascertainment of availability of fund
 The use of the appropriate treasure form involving
the preparation of a payment voucher

6. Reasons for preparation of
vouchers
For payment of :
 services rendered to government by its workers
 Goods purchased by a ministry or department
from firms or contractors
 Settlement of contract agreement between a
ministry or department and private contractors

7. New policy guidelines for
procurement and award of contracts
in Government ministries and
parastatals w.e.f 01/07/01
LIMIT OF AUTHORITY TO INCUR EXPENDITURE
MINISTRIES
 Permanent secretary/ accounting officer < N1m
without tendering with minimum of 3 quotation
 Ministerial tendering board < N50m

8. LIMIT OF AUTHORITY TO INCUR
EXPENDITURE
 Armed forces/ministry of Defence tender board-
chairman: p/s min of Defence, representative of
Army, Navy, Air force + DFA, min. of Defence.
 Nigeria Police Tenders purchasing board-chairman:
PS Police Affairs, Deputy Insp. Gen. of Police ( F &A
) Head of Departments.
 Federal Executive Council < N50m

9. LIMIT OF AUTHORITY TO INCUR
EXPENDITURE CONT’D
 PARASTATALS/ AGENCIES
 Chief executive ( MD/ DG ) of parastatals
<N700,000m without tendering with minimum of
3 quotations
 Board of parastatals/governing council < N20m
published in 2 national dailies
 Ministerial TB of the supervising ministry < N50m

10.  PARASTATALS/AGENCIES CONT’D
 Ministerial TB of the supervising ministry < N50m
 Advance payment/ mobilization fees 25% supported
with a bank guarantee

11. ESSENTIAL FEATURES OF A
VALID VOUCHER
 The essential features of a valid voucher are:
 Date
 Code head and subhead
 Voucher or Department number
 Name and address of payee
 Description of payment
 Amount in word and figure

12. ESSENTIAL FEATUERS OF A
VALID VOUCHER CONT’D
 Authority for payment like;
Warrant number
 Signature of officer controlling expenditure
 Initial approval in form of minutes-”Approved”
( photocopy not allowed )
 Location where the cheque is prepared e.g Lagos,
Abuja
 Signature of cashier

13. ESSENTIAL FEATURES OF A
VALID VOUCHER
 Cashier’s stamp paid which prevents
representation of the payment voucher for
payment a second time
 Voucher certificate which indicates the following
in a box
-Prepared by
-Checked by
-Entered in vote book by
-Passed by
-Paid by

14. ESSENTIALS FEATURES OF A
VALID VOUCHER CONT’D
Supporting documents: the nature of the
transaction will determine the type of documents
to be attached. It usually include the following :
 Minutes authorizing the expenditure
 L.P.O or the letter of award
 The invoice i.e receipt issued by the contractor
containing the bill

15. ESSENTIAL FEATURES OF A
VALID VOUCHER CONT’D
 Contract agreement
 Job completion certificate issued by the engineer
supervising the job
 SRV and delivery note

16. RULES TO OBSERVE WHEN
RAISING A P.V
 Must be type written or made out in ink
 Separate P.VS must be made for separate heads
 Original P.V must bear the full signature of the
officer controlling expenditure, while other copies
must be initialled
 Each P.V must be signed and no erasure of any
type is allowed
 Signature of the officer controlling expenditure
must be dated

17. Conditions under which sub-
accounting officer can make
payment
 Voucher must be certified for payment by the
officer who is authorized to do so
 The voucher which is stamped “checked and
passed” for payment must be fully signed by the
checking officer stating the name of the station
 The voucher stamped “entered in the vote book”
must be duly signed by the officer keeping the vote
book

18. LOSS OF PAYMENT VOUCHER
 Promptly investigate
 Ascertain if payment has been effected or not
 Ascertain if cash drawn is still at hand
 Fraud or loss must be reported to the accounting
officer to the accountant-General stating the
circumstance of the loss

19. JOURNAL ENTERIES
 This is another way of enabling transfers to be
made from one account to another. It could be
used in any of the following circumstances.
 Payment of ministerial services
 Correction of accounting errors arising from
misclassifications
 Ultimate allocation of unallocated stores

20. JOURNAL ENTERIES
CONT’D
 Carrying out adjustment or transfer between two
accounts e.g. transfer from revenue head to
consolidated revenue fund account
TYPES
 Adjustment voucher ( TF.23 )
 Supplementary journal voucher ( SJV )

21. TYPES OFJOURNAL
ENTERIES CONT’D
PRINCIPAL JOURNAL VOUCHER:
 This is used for correction of errors other than the
ones stated above
 To correct misclassification of accounts detected
by the main accounts
 To adjust the account
 To effect month-end transfer of account from
above- the-line account to below-the –line
account
 To effect annual transfer