GCUF Financial Policy.doc

7/27/2019 GCUF Financial Policy.doc

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GOODCARE UGANDA FOUNDATION

(GCUF)

FINANCIAL POLICY

2009

Service with integrity


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1. Authority.

This policy shall be used in financial control during and after implementation of any project/

programme, activity or event where there is no amendment or alteration that has to be approved

by the board of Directors and/or the Donor.

It is to be followed by all employees and Board members of GCUF. Compliance with the systems

and procedures contained herein shall be mandatory to all implementers. i.e Board members and

the general assembly.

2. Purposes.

Its purposes are:

a. State specific accounting procedures and policies.

b. Set standards

c. Provide consistent reporting of business transactions.

3. Scope

These policies shall apply to all funds received by the organization, unless the donor has a

different method which will be agreed upon and signed. The policies and procedures in

accounting functions shall cover the following areas:

a. Accounting procedures and controls.

b. Type and manner of record keeping.

4. Issue

This policy manual shall be strictly issued by the organizations director, Finance Manager and

fundraising coordinator.

Issuing of this manual shall follow a specific recording system developed by the Finance

Manager and fundraising coordinator showing the following;

a. Number of copies issued in sequential order.

b. Names of holders

c. Dates of issue.



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5. Revision

In case any revision suggested by the director, member of the board ,member of the executive

committee or any staff or member of the general assembly , the executive committee shall review

it and recommend the amendment and forward to the Board for approval.

6. The source of finance for GCUF.

The organisation will derive its financial help from;

i. Donors. Donations from either individuals or organizations shall be highly welcome and

shall therefore constitute the main funds for GCUF.

ii. Grants, gifts, and subscriptions, from members and member organizations. These funds will

solely be used for the organizations activities. These funds shall be banked on the

organizations central account.

iii. Any other source of funds for the organization as approved by the board from time to time

shall be highly welcome.

7. Book Keeping and Recording.

a) Book keeping.

i. GCUF will maintain records of fixed assets, petty cash disbursements, supplies,

inventory and the use and maintenance of office equipment.

ii. Every year, a draft budget shall be prepared jointly by the Finance Manager, Fundraising

coordinator, accounts department and the Executive Director two months before the end

of the year, presented to the rest of the members for scrutiny and discussions and

thereafter to the board for approval.

The budgeting procedures shall pay particular interest to the donors guidelines.

b) Accounting.

The following financial reports shall be prepared by the organisation;



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i. Quarterly financial reports. GCUF will prepare quarterly financial reports for

each individual project/programme. This will be done by the project/programme

manager for each individual project/programme and presented to the Board of

Directors for approval.

ii. Annual financial report. GCUF shall prepare annual balance sheet and

Statement of income and expenditure for each fiscal year.

iii. Accounting system.

GCUF shall maintain a simple spreadsheet computerized accounting sheets/ package and this will

also be reinforced with manual book keeping. The Finance Manager, accounts department shall

make and maintain arrangements for:

The prompt and proper accounting for all cash including its collections, custody

and control

Approval of funds received by the organization and deposition onto the

organization account.

iv. Accounting operations.

GCUF shall keep the following books of accounts.

Cash books.

Registers in respect of;

Cheques

Payment vouchers

Receipt books

Inventory

Debtors

Creditors.

Ledgers in respect of the following;



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Expenditure

Revenue

Cash

Salary

Loans

Provident funds i.e NSSF

Petty cash

General ledger where all debtors,creditors etc are recorded.

The Finance Manager and the accounts department shall be responsible for the

compilation of the accounting records and exercising supervision over

accounting records and systems.

8. Internal control measures.

For the computerized system, access to the accounting package shall be restricted to the Finance

Manager , accounts department and the Executive director.

It shall employ the use of passwords to prohibit access of accounts information by an authorized

persons.

9. Final accounts.

GCUF shall prepare final accounts like the balance sheet, cash flow statements as required by

international accounting standards.

10. Donor funds.

All the funds in form of cash or cheques received shall be analyzed on a monthly basis to clearly

indicate how much has been received from the donor(s). For all donor funds received there shallbe evidence of receipt, a receipt shall therefore be issued to the donor and Bank pay in slips shall

be maintained as evidence that funds received have been banked.



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A serially numbered receipt book shall be kept for cash received. Cash received shall be banked

with in two days of receipt. Where it shall be impossible to bank on the day of collection,

the making of any payment or advance out of cash shall be strictly forbidden.

Requisitions shall be made by the respective project manager or administrator and forwarded to

the Finance Manager and Executive Director for approval. The person purchasing shall

obtain quotations from at least three different suppliers and before selecting the supplier,

the quotations will be assessed and a report on how a given supplier out competed the rest

prepared. Only original supplier invoices will be accepted and used for payment. No

profoma invoice will be paid unless authorized by the Director.

A copy of the requisition note, suppliers delivery note and goods received note shall be attached

to the invoice before any payment is done.

The Finance Manager and the accountant shall ensure that receipt is obtained from the supplier as

evidence of receipt of payment.

All payments that exceed $ 200 shall be made by cheque. Cheques shall only be raised for

authorized transactions

11. Signatories to Cheque Books

The Executive Director of GCUF, Chairman and Treasurer shall be signatory to GCUFs

cheques. Money can be released by the signatures of two signatories the principal signatory

being the chairman board.

12. Types of Accounts

The following three types of accounts will be maintained by GCUF;

a. Central Account

All income accrued to GCUF, shall be deposited in the Central Account. The Executive Director

and the Finance Manager are authorized to operate the bank account. Two signatures of these

officials will be required for fund disbursement.

b. Savings Account

GCUF will keep fixed deposit savings account for its trust fund.



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c. Petty Cash Fund

A petty cash fund of $ 700 is kept to cover payments not exceeding $100. The Accountant/Office

Administrator will handle this account and is to be liquidated every two months.

The Executive Director and/or the Finance Manager will ensure proper handling of petty cash

fund through surprise checks from time to time.

13. Fund Disbursement

All payments shall be made either by cheque or cash.

a. Payment by Cheque

Payment for Purchases

Payment against purchases exceeding $ 200 shall be made by cheque.

Payment for Services Rendered

b. Payments for Staff Salaries

i . Payment Calendar

Staff salaries shall be paid within seven days following the completion of the month. Individual

cheques are to be issued to the employee concerned.

ii. Staff payroll

Staff payroll (salary sheet) shall be prepared by the Accountant as the basis of payment. The staff

payroll shall contain information on the employees basic salary for the month, allowances if

any, deductions and net salary payable. The staff payroll shall be checked by the FinanceManager and Secretary General and approved for payment by the Executive Director.

iii. Advance Pay



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GCUF employees may take advance payment of up to 3 months (after completion of 3 months

probation), if urgently required. The advance must be returned/reimbursed before the end of that

particular fiscal year.

For travel purposes, GCUF employees shall be given cash advances for expenses covered on

official trips. Request for cash advances shall be prepared by the personnel concerned,

recommended by the Finance Manager or General Secretary and is approved by the Executive

Director. All cash advances for travel are to be liquidated within a week following the

completion of the trip.

iv. Tax Deduction at Source

GCUF will deduct tax at source where applicable as per Government rules.

C .Payment for Contractual Services

Payment for contractual services shall be done through cheque disbursements. The schedule of

payment shall depend on the Terms of Reference (TOR) agreed upon by the personnel concerned

and GCUF . Payments are covered by a Request for Payment Form prepared by the accountant

and the Finance Manager and approved by the Executive Director.

We the members of GCUF Board of Directors on this day of //., hereby certify

that GCUF will be governed by this financial policy.

Signed

Lucky Guma Moses

.. .

Executive Director Chairman Board of Directors


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