Finance Policy

3.1. Sources of Funds

ASDEPCO receives funds from the following sources:

1. Project proposal supported funds.
   Annual membership contributions.
   iii. Income from short term professional services and consultancy assignments.
   iv. Grants and donations received from philanthropic organizations, government and individuals.

3.2. Signatories to Cheques Books

The Board of directors will designate signatories to various bank accounts. Money can be released by the bank with the signatures of at least two signatories for all accounts. Signatories will not sign cheques which are payable to themselves for services rendered. They will not also sign blank cheques. Cheques should be filled in completely (with payee, amount in words and figures, and date) before they are presented to signatories. They cheques should be accompanied by a request for withdrawal, clearly stating the reason for which the funds are needed.  The signatories to the particular cheque shall also sign the request for withdrawal.

3.3. Types of Accounts

The following three types of accounts will be maintained by ASDEPCO:

a. Bank Accounts

All accounts operated in the name of ASDEPCO are referred to bank accounts. The board of directors decides when to open and close an account depending on the need. However, management is also allowed to open accounts only for the purpose of facilitating her work, but these must have been approved by an act of the board chairperson or his/her delegated representative. Each bank account will have different signatories and instructions given to the finance department on how to run these account e.g. accounts for specific projects, reserves accounts, sustainability accounts, etc.

b. Project accounts

Where a particular donor or funder so requires, an account will be opened for the operation of funds for the particular project. When the project ends, such an account will be closed within one month once the final payment has been received and reports approved by the funding partner in question.

c. Petty Cash Fund

A petty cash fund of FCFA 300,000 is kept to cover payments not exceeding FCFA 300,000 at a time. The cashier will handle this account and maintain a petty cash book for that purpose and the amount is to be liquidated every month. However, cash has to be always available in this fund. The coordinator will ensure proper handling of petty cash fund through surprise checks. The accountant should make sure that there are detail cash counts at least once in three months.

3.4. Payment Methods

 a. Cash payments

Cash payments are effected via petty cash, which is operated from the office. The Coordinator or his/her assistant must authorize all payments by petty cash using the imprest system:

1. The staff in need of cash fills out an imprest voucher, clearly indicating the purpose for want of cash and presents it to the coordinator/accountant for authorization. Staff that are still to justify an earlier imprest cannot be granted another except otherwise.
2. The approved imprest is then presented to the cashier for payment. The cashier has to make sure that the imprest is properly approved by the competent authority.
3. The cashier then releases an amount equal to that on the imprest voucher against the signature of the staff who has presented it.
4. The cashier then preserves the interest for subsequent justifications (valid receipts) from the staff in question within 48 hours after the task has been executed.
5. When the staff produces the said justifications, the cashier indicates in red across the imprest voucher the words “Reconciled” or “Cleared” and the date. The cleared imprest voucher is then filed in a folder while the receipts are preserved for processing by the accountant. Reconciled imprest vouchers can be destroyed once in three months upon clear reconciliation of the accounts by the accountant.
6. Another staff designated by the coordinator may sign an imprest that is not more than FCFA 250,000.
7. Staff are not allowed to spend an excess of 5% of the amount that had been duly approved. Where it becomes necessary, the competent authority must be consulted.
8. Other justifications (with no prior imprest voucher) backed by receipts may also be presented for settlement provided the amount is not more than FCFA 50.000 (twenty thousand). Such payments must be approved by the coordinator or his assistant.
9. In the accounting department, receipts are grouped per kind of expense and then analyzed on the payment voucher to suit budgetary recommendations for the year in question.
10. Payment vouchers are certified by the coordinator for the sake of transparent management of all funds.
11. The Board, through internal controllers, checks the payments once in two years and makes a report with recommendations for improvement.

b. Bank / Cheque payments

All bank payments are to be prepared by the accountant. Situations requiring payment by cheque include the following:

• Bills;
• Transfer of funds;
• Payments by bank transfers (wages, salaries, etc);
• Need for cash in the office for day-to-day activities;

1. A bank withdrawal request form is filled clearly indicating the purpose for the need of funds. Once verified and confirmed, a cheque equal to the amount is also drawn.
2. The form is presented to the coordinator for verification and signing.
3. Next, the cheque is presented to the signatories for signature.
4. The cheque is then ready for presentation at the bank for payment and then
5. placed at the disposal of the beneficiary for cashing.
6. Where the money is meant for office petty cash: the amount cashed shall be paid to the cashier against a receipt.

 c. Cash Receipts:

Cash Receipts will be generated from cash received in the office for various activities carried out by ASDEPCO, which necessitate payment by the beneficiary. Such receipts must be triplicate, numbered and on ASDEPCO’s headed paper:

1. 1. Upon reception of the amount, the cashier raises a receipt clearly indicating the payer’s name and address, the amount received (in words and figures) and a description of the motive for the receipt.
   2. The receipt is signed by the payer and receiver.
   3. The original of the receipt goes to the client; a duplicate copy is reserved to be filed alongside payment vouchers as backup, while the triplicate copy is maintained in the receipt booklet for any cross checking.

d.Bank Receipts:

1. 1. All movements that have to do with augmenting ASDEPCO’s balance will be treated as bank receipts. These will consist of transfers; cheques received and deposited in the bank, interests credited, transfer by partners & clients, etc.
   2. Such credits are registered with justifications such as credit notes, bills for settlement, deposit slips, bank transfer certificates, debit notes, etc.

e.Payments

These are all transactions that have to do with reducing money in ASDEPCO’s coffers:

1. Bills and other payments above FCFA 500,000 shall be settled by cheque except at the voluntary request of the beneficiary.
2. Other bills less than FCFA 500,000 can be settled using petty cash.

3.5. Accounting Procedures

1. Financial Statements: The accounting year runs from 1^st January to 31^st The financial statements are prepared under the historic cost convention. They are prepared by the accountant, reviewed by the coordinator and approved by the Board.
2. External Audits: An accredited auditor will be selected to audit the accounts each year for five years, a period equal to that for a running strategic plan. Once the audit is complete and opinion stated by the auditor, the Board shall then give her approval.
3. Depreciation: Fixed Assets are stated at cost less depreciation. Depreciation is provided on a straight-line basis to write off the cost of the fixed assets over their expected useful lives at the rate provided for by the General Tax Code.
4. Investments: investments are made only by a decision of the Board of Directors. Dividends from investments are accounted for on a receipt basis.
5. Foreign currencies: Transactions in foreign currencies are recorded at the rates of exchange ruling at the respective dates of the transactions. At the balance date, balances denominated in foreign currencies are translated into FCFA at the rates ruling at that date. Gains or losses on exchange are recognized in the income and expenditure account.

3.6. Budget setting

1. 12 monthly income and expenditure budgets will be prepared by the management team in time for amendment and approval by the Board of directors.
2. The approved budget will be used as a base to construct a cash-flow forecast for the year, which will be updated quarterly by the finance department.
3. Management is not allowed to spend more than 25% on a budget expenditure head except with clearance from the board chairperson.
4. Each semester and then annually, the accountant will provide an analysis of how the budget has been executed per the activities carried out.

3.7. Financial monitoring and audit

All budget holders will receive appropriate, regular reports of income and expenditure against budget. Annual financial reports and budget analysis must be presented to the board of directors by February of the following year. Audited accounts must be ready by the end of June in the following year.