GLOBAL FINANCIAL POLICIES & PROCEDURES MANUAL 2014/16

Transcription

1 GLOBAL FINANCIAL POLICIES & PROCEDURES MANUAL 2014/16

2 INDEX Page No 1 Introduction Purpose Restless Development Values and Accounting Policies Annual Finance Timetable Accounting for Donations Income Receipt Procedures Expenditure Procedures Staff Authorisation Levels Segregation of duties Procedures & Authorisation Limits Requisitioning of Funds Cash Floats Rolling Cash Floats: Accountability of Requisitioned Funds Cheque Payments Payments Against Invoices Petty Cash International Flights Recruitment agents and job boards Large Items of Expenditure / Procurement Annual Supplier Review Full Cost Recovery Payroll, Expenses, Insurance Claims and Allowances Payroll & Tax Accounting Travel Expenses Insurance Claims Banking Monthly Accounting Procedures Recording Transactions in the Cashbook Reconciling the Cashbook Recording Transactions in the Bankbook Reconciling the Bankbook Supporting Documentation Cash/Safe Management Accounting for Stocks Write-Offs Accounting for Foreign Exchange Journal Entries Monthly Reporting Pack Funding Statements Cash flow Forecasting and Requests Head Office Cash Forecasting and Transfers from Restless Development International Field Office Cash Forecasting and Transfers from Head Office Accounting for Fixed Assets Maintaining the Fixed Asset Register Asset Coding Asset Transfers Disposal of Assets Upkeep and Maintenance of Assets Assets not Capitalised Income Treatment for Capitalised Assets Revaluation of Assets Chart of Accounts Page 2 of 57

3 12 Field Office Requirements Field Office Management Field Office Areas of Responsibility Field Office Reporting Field Office Internal audits Inter Office Cash Requests and Transactions Budgets & Forecasts Budget Setting & Import to Pastel Income Assessment Budget Re-Forecasts Donor Reporting Donor Reporting Budget Banking Lead Agents Co-Financing Donations in Kind Deferred and Accrued Income Recognition of income Recognition of Expenditure Accrued Income Deferred income Accrued Expense Deferred Expense Year End Accounting Requirements Audits External Audit Internal Audit Storage of Information Requirements to Store Financial Information IT Procedures Page 3 of 57

4 1 Introduction 1.1 Purpose The purpose of this policy & procedure document is to: Ensure that Restless Development is responsibly and transparently managing and accounting for the funds it receives to fulfil its mission and strategic objectives for young people Provide some basic control procedures that will be adhered to across all Country Programme offices (CPs) Provide a common set of minimum standards for finance management procedures for Restless Development globally, ensuring value for money is obtained Act as a reference document for users Remove subjective judgments within financial management processes Enable budget holders to control expenditure against budgets Facilitate accurate reporting against agreed budgets to all stakeholders Improve accountability both nationally and internationally, as well as within Restless Development and to all stakeholders Provide a basis of documentation where Country procedures can easily be added with annexes to enable compliance with Restless Development International policies, to ensure true and accurate submission of annual accounts required in the UK. This document is to stand for 2014/16 and should be reviewed annually by all CP s and Restless Development International. Ultimately the Country Director of each Programme is responsible for ensuring the financial procedures of the programme are carried out in line with the Financial Policies of Restless Development International. Whilst it is the ultimate responsibility of the Country Director, it must be noted that it is the responsibility of all Restless Development staff that these Policies and Procedures are adhered too. It is within the role of the FAM to ensure CP processes and procedures and in-line with the Global Finance Policy. 1.2 Restless Development Values and Accounting Policies Restless Development Values and Finance Management Effective financial management is not simply adhering to a list of rules and procedures. For successful Financial Management we need to ensure that we are also adhering to our Restless Development values and mission. a) Restless Development exists to benefit the lives of young people and the funds which we receive are for that purpose b) Restless Development works in the context of extreme poverty, and in the middle of a development sector where resources are commonly misused and/or wasted Restless Development is different, and universal adherence to our finance management systems and procedures is one way in which we show that we are different c) We are proving that Restless Development s work can only be done with the trust of all stakeholders, communities, young people, volunteers, staff, donors and governments, and so our finance management systems must show how we transparently and reliably utilise our resources for the programmes and operations which fulfil our mission, not for any personal gain Page 4 of 57

5 d) Restless Development is reshaping the role of young people in societies which do not yet believe that young people can successfully take on leadership roles with serious responsibility. In order to prove that young people can lead and hold responsibility, we must hold ourselves to a higher standard of professionalism, and effective finance management is one of the principal ways in which we do this. Any breach in the integrity of our finance management damages not only the reputation of Restless Development, but undermines our assertion that young people can take on leadership roles and serious responsibilities Restless Development Accounting Policy Financial Statements of Restless Development International are prepared using the historical cost convention, using the accruals basis of accounting. The accruals basis of accounting should be used for all audited Country Programme Financial Statements, in addition, certain donors may require further Financial Statements to be prepared and audited using the cash basis of accounting. Recognition of Income Income from donors is recognised in the Financial Statements to the extent that Restless Development is legally entitled to the income and the amount can be quantified with reasonable accuracy. Income including donation, grants and volunteer contributions should be recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Income should be recognised when the following are met, not simply when cash is received; Entitlement the charity should have entitlement to the income. Certainty there should be reasonable certainty of receipt Measurement the item can be measured monetarily with reasonable certainty Accrual Based Accounting Accounting for Income on an Accruals Basis In order for Restless Development Country Programmes to account on a consistent basis, all accounts (other than those specifically requested to be on a cash basis by donors) must be prepared using the accruals basis of accounting. Accrued income Income earned or due for a period which has not yet been received Income should be recorded as a donor debtor and credited to income (only if the amount is measurable and it will definitely be received, eg. If it is receivable under a contractual arrangement) Deferred Income Income received in a period which is not due to be spent until a future accounting period It should be recorded as a creditor, reducing income accordingly (usually under the heading Deferred Income) when: The donor specifies that the grant or donation must only be used in future accounting period; or The donor has imposed conditions which must be met before the charity has unconditional entitlement; or Volunteer contributions received in relation to volunteers that have not yet begun their assignment. Income is included to the extent of completion of the donor contract. This is generally equivalent to the sum of relevant expenditure incurred during the year and any related contributions towards overhead costs. Page 5 of 57

6 Income from donors received in respect of the acquisition of property, plant and equipment are treated as deferred capital grants and released to income in line with depreciation over the life of the asset. Foreign currency Foreign currency received is translated to local currency at the monthly average rate for the month it is received, taken from The balance in hand at the year-end is converted to local currency at the rate ruling at the balance sheet date. The resulting exchange differences are recognised in the income statement for the year. Inventories Inventories are stated at the lower of their cost or net realisable value. 1.3 Annual Finance Timetable Page 6 of 57

7 Restless Development Financial Management Work Plan Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Financial Accounting Routines Banking Weekly Payroll Monthly Preparation of cheques / expenditure vouchers / payments Daily YES YES YES YES YES YES YES YES YES YES YES YES Prepare / check purhcase orders Daily YES YES YES YES YES YES YES YES YES YES YES YES Review log books Monthly Review account receivables Weekly Review account payables Weekly Update cash and bank books Weekly Reconcile cash and bank books Monthly Post staff float retirements Weekly Post funding statement transactions Monthly Reconcile and revalue funding statement Monthly Filing Daily YES YES YES YES YES YES YES YES YES YES YES YES Update stock records Weekly Reconcile stock records Monthly Year End Retire all outstanding staff floats Annually Reconcile and revalue funding statement Annually Calculate and post deferred capital grants Annually Calculate and post depreciation Annually Calculate and post deferred / accrued income Annually Reconcile receivables and payables Annually Prepare financial statements Annually Draft account sent to International Annually Prepare audit file Annually Auditor's visit Annually Audited accounts sent to International Annually Internal Audit Host internal audit Annually Implement internal audit recommendations Annually Budgeting Prepare strategic budget Annually Prepare operational and multi-year budget Annually Incorporate International feedback Annually Submit final operational and multi-year budget Annually Global budget Trustee approval Annually Quarterly reforcast submission Quarterly Quarterly reforcast approval Quarterly Reports Preparation of management accounts (SOFP, SOCI, TB) Monthly Preparation of cashflow report Monthly Preparation of donor reports Ad-hoc Reviews Regular suppliers Annually Timesheets Monthly Holiday leave forms Monthly Contracts - staff & thrid parties Annually Fixed asset register 6-monthly Insurance cover Annually Delegated authorities 6-monthly Finance manual Annually 1.4 Key of Abbreviations FAM MC CD CP FD CE SMT Finance and Administration Manager Country Programme Management Committee Country Director Country Programme Restless Development Int l Finance Director Restless Development Int l Chief Executive Restless Development Int l Senior Management Team 2 Accounting for Donations A complete record of all donations must be maintained whether the donation is a regular disbursement from a donor grant, or receipt of a non-cash donation (i.e. Donations in Kind). It is the responsibility of each Office to report all donations received. All donations should be logged into Pastel. Page 7 of 57

8 Template: RESTLESS DEVELOPMENT Monthly Donation Return Office: Month: Cash Donations: Description Value ( ) Total 0.00 Non Cash Donations: Description Approx Cash Value ( ) Total 0.00 The lead Fundraising staff member will maintain the files, whilst the FAM will ensure the correct accounting treatment is made for each donation A monthly donation return must be completed and sent along with any supporting documents to enable the income register records to be kept up to date. Where non-cash donations are received an estimated cash value should be placed on these, with supporting evidence to back the estimation attached Page 8 of 57

9 3 Income Receipt Procedures In the event of a cheque or cash being paid directly to Head Office or to an individual Field Office, an income receipt must be completed A copy of the receipt should be given to the donor A second copy of the receipt should be filed with the respective expenditure Template: RESTLESS DEVELOPMENT Income Receipt Voucher Office: Date: Received From Description (Including whether receipt is cash or Amount ( ) cheque & cheque no) Total 0.00 Received By (Print Name): Approved By (Print Name): Received From (Print Name): Signature: Signature: Signature: An income receipt voucher must be completed, with a copy given to the individual who has supplied the cash or cheque or direct payment into a bank account Cash and cheques should always be paid directly into the bank A copy of the income receipt voucher must be filed along with backup documentation to the transaction For small unrestricted donations, the income receipt should be filed along with unrestricted donor expenditure Pastel Cash/Bank book should be updated for each transaction Page 9 of 57

10 4 Expenditure Procedures 4.1 Staff Authorisation Levels The following expenditure authorisation levels for staff must be adhered to under all circumstances: Staff Grade Authorisation Limits Director Above 2,000 Senior Manager / Head of Up to 2,000 Manager Up to 1,000 Finance Manager Senior Coordinator 750 Coordinator Up to 500 Up to 1,000 (as 1 st signatory for finance and admin purchases) Any limit (2 nd signature only) The limits below should be in Local Currency as agreed with the MC and approved by Restless Development Int l The authorisation limits are for the total of all items of expenditure Managers and Coordinators may only authorise expenditure from their unit budget In the case of a finance or admin purchase the FAM will provide the 1 st signature (as line manager) and the second signature should be provided by someone outside of the finance team according to the authorisation levels above For a purchase above 2,000, once this has been approved by the budget holder and finance manager, the final authorisation can be by any director, although preferably the director of the relevant unit. Procedures: No staff member may requisition funds and authorise their own requisition, or approve their own accountability forms. For example, if a Programme Coordinator requisitions funds, the Programme Manager must authorise them, if they are not in the same office via or as per monthly meeting. The segregation of these duties is imperative for control purposes. Support Officers should only approve requisitions made by Volunteers in the absence of the Coordinator, and it is the Coordinators responsibility to inform the Support Officer which items should be authorised and up to what value. N.B. Formal appointment of budget holders will be made by the MC and the appointments documented. It is the responsibility of the FAM to ensure that all budget holders are trained in finance management procedures and policies to execute their responsibilities, and to make sure that all budget holders are involved in and aware of all budget development and budget reforecasting processes. Page 10 of 57

11 4.2 Segregation of duties Procedures & Authorisation Limits In addition to staff authorisation levels, Restless Development require where possible a segregation of duties in the Accounting for expenditure Each transaction should have two authorised signatures, one of the budget holder to ensure spend against approved budget line, and a second finance signature to approve availability of funds and appropriate documentation In the case of a finance or admin purchase, the FAM should provide the initial authorisation (as budget holder) and then, since a second authorised signature is required, this should be provided by another employee from outside of the finance team according to the authority limits in section 4.1. If the Country Director submits a purchase or float request, then in addition to the FAM authorising as per any other transaction, it should also be sent to the SMT Lead for approval. If an expense claim, Purchase Order or float requisition form is for an amount higher than the budget holder s authority limit then the signature of an additional authoriser (in line with the limits in section 4.1) should also be obtained. 4.3 Requisitioning of Funds Cash Floats Prior to expenses being incurred, an authorised float requisition form must be completed against which a payment will be issued Appropriate backup must be included with each request. This should be in the form of an invoice, quotation or memo of explanation Each request must be approved by the budget holder, with expense and donor coding clearly stated on the payment request Any member of staff can have only two outstanding floats at any time. New floats will not be issued until previous floats are fully accounted for, except in exceptional circumstances, which must be agreed with the Country Director. Note, where floats are issued by Donor, the maximum outstanding floats may be greater than one. However, this must be prior approved by the CD as an amendment to the above policy and approved by Restless Development Int l FD More than two floats may be issued to a member of staff if they relate to different components of a single trip ( sub-floats ), for example a month long trip visiting field sites may result in a separate sub-float being issued for each field site in order to aid allocation of costs to different donors. However, in this situation each sub-float should note that it is part of a group to enable the Finance Manager to effectively manage floats and ensure that staff do not hold more than two simultaneously. Only fully contracted staff members may receive cash floats (Interns, unless on a full annual contract, may not receive cash floats) Page 11 of 57

12 Templates: RESTLESS DEVELOPMENT Float Requisition Form Requested By: Purpose: Event Date(s): Float Number: Donor: Unit/Prog: Total Expense Code Details (What, Why, Who, When, Where) Unit Unit Cost Cost ( ) Receipts Retired ( ) Balance Returned ( ) RESTLESS DEVELOPMENT Float Register Donor / Programme: Month: TOTAL Date Balance Returned Receipts Submitted Retirement Due Amount ( ) Description (incl Float Ref Number) Name / Signature of recipient Date Amount Date Amount Date ( ) ( ) Planned date of return to office: Amount requested in words: Amount Requested in Figures: LM Authorisation (spend is within budget) : FAM Authorisation (properly processed) : Float Received By: Date: Date of return: Cash Returned ( ): Receipts Submitted ( ): Original Float Value ( ): Difference ( ): Received/Paid By: LM Authorisation (spend is within budget) : FAM Authorisation (properly processed) : Date: Prior to release of a float, a requisition and float request form must be produced to justify the float. This must be authorised by the relevant authorising staff members (as per 4.1 above) A separate float register must be completed by the Support Officer/Finance Manager for each individual who has a float and kept in the cash safe. This form enables the Support Officer/Finance Manager to keep a record of all outstanding floats The Support Officer/ Finance Manager must not make payments directly from cash without a completed requisition form Each MC must review the Float registers on a monthly basis with the FAM. The CD must also review the Staff Debtor ageing report from Pastel, as prepared by the FAM A statement should be sent to each member of staff on a monthly basis showing the balance owed by each employee and the age of the balance, copying in the CD as appropriate, reminding staff of the amount they owe. When the float is signed for, it becomes the sole responsibility of the individual who has signed to account for its disbursement. Transfers between cash floats are strictly forbidden. If cash needs to be used from your float by another member of staff, for the purposes expressed in that float then it is your responsibility to ensure that the staff member borrowing money from your float returns the receipt and change to you immediately. Remember, you are responsible for the cash from your own float Any Restless Development cash received and signed for should be kept separately from any personal money that the staff member might be carrying Volunteers may be unable to request funds in person for activities etc due to their location. In these circumstances programme staff should request a float as normal and take the funds to the volunteers. The volunteers must then complete a float request form for the money they receive at which point it becomes the volunteer s responsibility to complete an accountability form for those funds. Please note it is the programme staff members responsibility that the forms and requisitions are completed on a monthly basis as part of monthly field visits Planning procedures should be implemented in each country programme to ensure float requisitions are approved by relevant managers prior to annual leave or travel Page 12 of 57

13 Under no circumstance should a float be issued to a member of staff without Line Manager and Finance Manager approval as per the Restless Development authorisation limits (section 4.1). Only in exceptional circumstances may a float be issued by verbal agreement, for example in an emergency situation. In the event of such an emergency, Line Manager approval must be obtained at the earliest possible opportunity If cash is advanced to a staff member then this must be treated as a float and the conditions in this section will apply 4.4 Rolling Cash Floats: Only applies when staff member is away from the office for more than 28 days and is unable to send back the physical cash receipts in order to obtain a replacement cash float. If a staff member sends back the retirement form for the current cash float, a replacement float can be issued. However, to receive the replacement float, the staff member must submit a cash flow forecast for the following month (28 days) along with the float request form. The supporting documentation for the initial float must be received in head office within 14 days. Floats will only be provided upon receipt of cash forecast with supporting documentation for the next month. The first cash float is requested as per the process in section 4.3 above. If the staff member is out of the office for more than 28 days then at the end of the fourth week the cash float should be retired as per 4.3 above. A new cash float request form should be prepared and supporting cash forecast attached and sent to the Line Manager and FAM. The Line Manager and FAM should review the request (in accordance with the authority limits), and cash float issued at the end of week four or the beginning of the fifth week. The receipts and supporting evidence relating to the first cash float should be posted back to the office to be received within 14 days of the initial cash float retirement. A third cash float (if required) is not allowed to be provided until the supporting documentation from the first cash float have been received and approved. On returning to the office, all remaining cash floats and supporting evidence should be provided to finance. All other procedures/rules as per section 4.3 above remain applicable. Float 1 Week 0 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Float request form Cash received Retirement form Submit receipts etc Float 2 Float 3 Request incl. cash forecast Cash received Retirement form Request incl. cash forecast Page 13 of 57

14 4.5 Accountability of Requisitioned Funds # All floats must be accounted for as soon as possible or at maximum of within 5 working days of return from the field, unless there is specific agreement with the Country Director Floats must be retired in their entirety through receipts or returned cash, any outstanding floats balances must be monitored by the MC on a monthly basis and followed up as a matter of urgency by the line manager If the value of the expenses does not balance to the value of the float the staff member concerned must account for this and repay any balances due to Restless Development which have not been accounted for If floats are not returned within this timeline, or without communication of delay such as field travel, the value will be deducted from the staff members subsequent salary with the approval of the CD together with documentary evidence Floats which have been advanced to Volunteers must be accounted for on at least a monthly basis, weekly where possible In some instances staff members may incur expenses that have not been requisitioned for from the float issued. In these circumstances written agreement must be obtained following on from verbal agreement by the line manager/ budget holder prior to the expense being incurred and an accountability form completed to reclaim the expense If a staff member has overspent on a subsistence allowances (see section 7 of the employee handbook), this overspend cannot be claimed an only the value of the subsistence allowance should be recorded on the float accountability form. Template: RESTLESS DEVELOPMENT Float Accountability Form Float Number: Donor: Unit/Prog: Expense Code Receipt Date Reference No Details of expense Value ( ) Comment TOTAL 0.00 Prepared By (Signature): LM Approval (Signature): (confirm spend is appropriate and within budget) Finance (checked): (confirm supporting documents attached) FAM Approval (Signature): (confirm form properly processed and cash available) Date: Date: Date: Date: Page 14 of 57

15 Staff & Volunteers should complete an accountability form for each float issued, and summarise their expenditure by expense code on the original float requisition form Upon receipt of accountability form, the budget holder will check all receipts for authenticity against the criteria described below, as well whether the actual expenditure was in line with the requisitioned amounts. The accountability form will then be checked by the FAM for accuracy and coding. Once approved, the outstanding float will be cleared When the accountability form has been approved, the float register form must then be updated by the Support Officer/ Finance Manager to show receipt vouchers have been obtained, the float balance cleared and the expenses have been recorded against the staff debtor account in Pastel It is the Support Officers / Finance Manager s responsibility to inform the CD of any floats that have not been accounted for within the stated period It is essential floats are retired on a timely basis (within five days of returning to the office). It is the responsibility of the Management Committee that the Staff Debtor Ageing Report is reviewed on a monthly basis, as prepared by the FAM The completed accountability form must include the following: Backup documentation (i.e. receipts see section below for what is permissible as a receipt) Main & Sub Account Code (from the Chart of Accounts) Expense and Donor Date of the transaction Reference number (a unique number for each transaction) which the staff member must write on the backup documentation Detailed description of the transaction (i.e. who incurred the expense, what was it for, what period of time did it cover) Amount of the transaction Each receipt must meet the following criteria or cannot be used as a receipt: The date must be shown on the receipt The supplier name must be shown Hand written receipts must show the amount in figures and where possible written in words. Stamps or official stationery should be used where possible by the supplier A description of what was purchased i.e. each item purchased (this should provide the information for the description of the transaction required on the accountability form) Any alterations to receipts must be signed for and clearly explained If a receipt cannot be obtained the staff member a Fund Acknowledgement form should be used. Signed scraps of paper do not qualify as receipts Acknowledgment of Funds Received: Date:.. Travel Expense Form Name: Date Departure location Destination Location Means of Transport Value ( ) I,., acknowledge receipt of from Restless Development for Signature: Phone:. Total: (input total as 1 line on accountability form) Signature: 0 Completion of a Fund Acknowledgement form by any staff member without a signature from the supplier will only be accepted for purchases from street vendors up to a value of e.g per transaction Expenditure for transportation, for which receipt cannot be obtained, should be documented using the Travel Expense Form If any receipts are lost and it proves impossible to obtain a replacement, a Fund Acknowledgement form should be used and signed by the individual member of staff and countersigned by the CD. On the back of this replacement receipt there must be a full explanation of how the receipt was lost and all attempts made to ensure the supplier can re-sign the documentation If the conditions above are not met, the expenditure cannot be justified against requisitioned funds and must be repaid in full or will be deducted from the staff members salary as per conditions set out above Page 15 of 57

16 4.6 Cheque Payments Where possible payments should be made by cheque All individual items of expenditure over 250 must be made by cheque Template: RESTLESS DEVELOPMENT Cheque Request Form This form must be completed for all cheque payments Description of Transaction Cash in Hand: Cheque Number: Account : Amount ( ): LM Authorisation: (Print Name) FAM Authorisation: (Print Name) (Signature): Date: (Signature): Date: Prior to payment a cheque request form must be completed and authorised by the relevant authorising officer (as per section 4.1) All cheques must be signed by two nominated signatories (in accordance with CP signatory procedures, which must be approved by Restless Development Int l and the national Board Cheques must NEVER be pre-signed. This condition protects both Restless Development, and the individual signatory All expenditure made by cheque should have a cheque request voucher as backup, as well as an invoice and Payment Order / Petty Cash voucher where appropriate, as well as a receipt. There may be circumstances where a cheque payment is not possible an approved list of suppliers who are cheque exempt should be clearly documented with explanations, and reviewed by Restless Development Int l on an annual basis. 4.7 Payments Against Invoices All invoices from suppliers must be matched to an approved Purchase Order prior to payment (unless they are a regular supplier) All Purchase Orders must be approved by the budget holder in line with section 4.1 above Page 16 of 57

17 Template: RESTLESS DEVELOPMENT Purchase Order Date: Supplier Name: Other (please specify) Our Order Ref: Note to Supplier: 7 Wootton Street London Date: SE1 8TG +44 (0) Supplier Name: Other (please specify) Our Order Ref: Note to Supplier: RESTLESS DEVELOPMENT Purchase Order 7 Wootton Street London SE1 8TG +44 (0) Expense Code: Donor Code: Unit / Prog: Item Description: Expense Code: Donor Code: Unit / Prog: Item Description: Gross Amount: Delivery Instructions: Gross Amount: Delivery Instructions: Restless Development Contact: Name: Telephone No: Restless Development Contact: Name: Telephone No: Budget Holder Signature FAM Signature Budget Holder Signature Approval Signature Budget Holder Name Date: Approval Name Date: Budget Holder Name Date: Approval Name Date: (confirm spend is appropriate and within budget) (confirm PO properly processed and cash available) Checked, matched & dated by: Checked, matched & dated by: Signature (finance) Signature A Purchase Order must be completed prior to an invoice being received from a supplier The Purchase Order must be approved by the budget holder (in line with section 4.1) and the FAM, as approval of the planned expenditure, and passed the finance team The Support Officer/ Finance Manager will then match the purchase order to the invoice when received Payment of the invoice will then follow either the cheque payment procedures (section 4.5) or petty cash procedures (section 4.7), as appropriate 4.8 Petty Cash Payments from petty cash should not exceed 50 A petty cash voucher must be completed and approved (as per section 4.1) for each item of expenditure Receipts must be produced within 24 hours by the staff member receiving the petty cash Template: Page 17 of 57

18 RESTLESS DEVELOPMENT Petty Cash Voucher Voucher Reference: Donor Name Donor Code Unit / Prog: Expense Code: Date of Transaction: Description of Transaction Amount in Words Amount in Figures Payment Authorised By: Name: Signature: Date: Balance Returned: Returned by: Payment Made By: Name: Signature: Date: Payment Received By: Name: Signature: Date: A staff member requiring petty cash should complete a Petty Cash Voucher, detailing the donor and expense code for the transaction The Petty Cash Voucher must be approved by the budget holder in line with the approval limits stated in section 4.1 Receipts for the expenditure must be submitted to the Support Officer/ Finance Manager within 24hours of the cash being received The expenditure should be posted directly from the cash book to the expense in Pastel 4.9 International Flights : A regular supplier will be identified by Restless Development International, following the regular supplier annual review Whilst a regular supplier, three quotations must still be obtained for each international flight Approval for the selected flight will be given by the budget holder, and not the full procurement committee, in line with the authorisations stipulated in section 4.1 A staff member booking an international flight should request three quotations from the stated regular supplier, as well as an in-country quote comparison where possible Approval will be sought for the chosen flight from the budget holder in line with the approval levels stipulated in section 4.1 If the International regular supplier is the chosen supplier, the three quotations and in-country approval will be sent to the International Assistant Finance Coordinator The approval will also be forwarded to one of the International supplier approvers (FD, SFM, IFM) who will communicate the confirmation with the regular supplier Payment will be made from International and charged against the relevant (CP) budget The International supplier approver will then sent the confirmation and e-ticket to the passenger Should the in-country supplier be chosen, the procedures for payment against an invoice should be followed, attaching all quotations to the Purchase Order (section 4.6) Page 18 of 57

19 4.10 Recruitment agents and job boards A list of preferred suppliers should be identified by Restless Development International covering the various different unist, following the regular supplier annual review Terms of Reference should be agreed with the preferred suppliers to formalise the fee structure and percentage Approval of the selected recruitment agent(s) must be provided by the budget holder and the People Director prior to any agreement being made with a recruitment agent. Recruitment agents not on the preferred supplier list can also be used, with the prior agreement of the People Director During the annual supplier review process ten potential recruitment agents and job boards should be identified (covering all of the units) and quotes obtained from these suppliers This supplier review should also help establish the current market rate for recruitment agents and job boards The Procurement Committee will discuss these potential suppliers during the supplier review and generate a preferred supplier list The People Director must approve the use of a recruitment agent not list of preferred suppliers. team must then approve the Terms of Reference must then be agreed with each recruitment agent and job board to formalise the fee structure and percentage fee to be charged in the case of a successful candidate being recruited The budget holder must prepare a Purchase Order based on Terms of Reference and the People Director must authorise the engagement of the recruitment agent or job board Should the recruiter be successful in sourcing a candidate, when the invoice is received, the budget holder must confirm that the fee is in agreement with the Terms of Reference. Page 19 of 57

20 Value for Money - Economy 4.11 Large Items of Expenditure / Procurement Each Restless Development Office should create a Procurement Committee, with clearly defined and stated membership: International Procurement Committee Members: Chief Executive Finance Director Director of Investments & Partnerships Performance Director Programme Quality Performance Director Human Resources Head of Finance Head of Fundraising Head of Programme Quality The Procurement Committee should be as senior as possible and the composition approved by the Management Committee. The composition should be reviewed annually and the basis of the composition documented. A minimum of 3 quotations must be obtained for all items of expenditure above 250, except flights, stationery and recruitment agents (see flow chart below) The Procurement Committee must decide on the chosen supplier prior to the purchase of goods/services being made, based on economy (cost), efficiency (quality) and effectiveness (intended purpose)where field office suppliers are limited, procurement should take place centrally at head office where possible Any procurement decisions in-country for vehicles, or items of expenditure over 10,000 must be approved by the Finance Director Any procurement decision for items of expenditure over 20,000 must be approved by the Finance and Audit Committee. Page 20 of 57

21 Template: RESTLESS DEVELOPMENT Procurement Decision Form This form must be completed for any single item of expenditure above 500 Description of goods/services required: Available Budget: Details of quotes obtained ie. Supplier name and cost (written quotes must be attached): Successful Supplier: (if lowest price has not been chosen reasons for the decision must be given here) Donor Code: Unit / Prog: Expense Code: Prepared By: (Print Name) (Signature): Date: Procurement Committee: (Print Name) (Signature): Date: Procurement Committee: (Print Name) (Signature): Date: Procurement Committee: (Print Name) (Signature): Date: These procedures should be applied to items of expenditure over 250, any computer equipment purchases or major vehicle repair. In the case where a broker is used, the broker must supply quotes as below. The Procurement Committee should be the MC or an elected sub-section of the MC A minimum of three quotes must be obtained where practically possible. If this is not possible, a written memo should be supplied to provide an explanation. (e.g. only one supplier in the Region) Following the receipt of the quotes, a decision must be taken as to which supplier to use; this should involve a minimum of three senior staff from the Procurement Committee and be minuted on the Procurement Decision Form (no need for separate PC minutes). Detailed reasons for selecting that particular supplier must be documented. The three members of the Procurement Committee should then sign the bottom of the Procurement Decision Form. If the members discussed the purchase via , then one member of the committee should compile the minutes on the Procurement Decision Form and then the s documenting the members approval should be attached to the Procurement Decision Form. When the item has been delivered/ services carried out the invoice is matched against the Purchase Order and authorised by the relevant authorising staff member (as per section 4.1 above), and all documents are then filed together A cheque is then issued to the supplier, following the cheque payment procedures (section 4.5) Page 21 of 57

22 4.12 Annual Supplier Review Regular suppliers should be reviewed annually to ensure ongoing competitiveness of products / services procured and to ensure that Restless Development has sufficient knowledge of the market in which it operates (such as the current market rate for these regular purchases) Regular suppliers include: o Those who provide an ongoing service (eg insurance, internet, telephone) o Those who provide goods/services 3 or more time a year (eg stationery, printing, training venue) A list of regular supplier must be compiled and documented and maintained by the Finance team A minimum of 3 quotations must be obtained for a set of standard items from all regular suppliers The Procurement Committee must decide on the chosen supplier based on economy (cost), efficiency (quality) and effectiveness (intended purpose) The procurement decision should be reference on all future purchases from each regular supplier Template: RESTLESS DEVELOPMENT Procurement Decision Form This form must be completed for any single item of expenditure above 500 Description of goods/services required: Available Budget: Details of quotes obtained ie. Supplier name and cost (written quotes must be attached): Successful Supplier: (if lowest price has not been chosen reasons for the decision must be given here) Donor Code: Unit / Prog: Expense Code: Prepared By: (Print Name) (Signature): Date: Procurement Committee: (Print Name) (Signature): Date: Procurement Committee: (Print Name) (Signature): Date: Procurement Committee: (Print Name) (Signature): Date: The Procurement Committee should be the MC or an elected sub-section of the MC A minimum of 3 quotes must be obtained where practically possible. If this is not possible, a written memo should be supplied to provide an explanation. (e.g. only one supplier in the Region) Following the receipt of the quotes a decision must be taken as to which supplier to use, which should involve a minimum of three senior staff in a minuted on the Procurement Decision Form. Detailed reasons for selecting that particular supplier must be documented. The three members of the Procurement Committee should then sign the bottom of the Procurement Decision Form. If the members discussed the purchase via , then one member of the committee should compile the minutes on the Procurement Decision Form and then the s documenting the members approval should be attached to the Procurement Decision Form. The procurement decision should be referenced on all future purchases from each supplier, Invoice and Cheque payment procedures (sections 4.5 and 4.6), as applicable, should then be followed for each purchase made during the year from the regular supplier Page 22 of 57

23 4.13 Full Cost Recovery Full Cost Recovery should be applied to our budgeted and actual expenditure annually to determine the true cost of our approaches (in-country), and country programmes (international) In country, full cost recovery results should be used to maximise the administrative, staff and support costs proposed to donors, as well as to determine the efficiency of our approaches Where possible, all donor proposal budgets should include International Support of approximately 8-10% Following the Trustee approval of the annual budget, FCR should be applied to the figures using the Restless Development FCR Toolkit o Office costs will be allocated based on head count o Central staff costs will be allocated based on staff time (see timesheets) o Governance costs will be allocated based on direct expenditure of each approach o Fundraising costs will be allocated equally across the approaches / countries The results derived should be used to inform all donor proposals for funding in the year ahead, ensuring to maximise in-country administrative, staff and governance costs, as well as international support At the year end, FCR should be applied to the year s actuals to determine the real cost of our approaches / countries Using FCR is the only way for Restless Development to truly assess the efficiency of our inputs (resources) Both sets of results should be compared and used to inform strategic planning and/or annual programme reviews Timesheets All contracted employees (excluding interns) are required to complete a daily timesheet Timesheets should be received by the Finance Team and consolidated on a monthly basis Page 23 of 57

24 5 Payroll, Expenses, Insurance Claims and Allowances 5.1 Payroll & Tax Accounting Payroll documentation should be prepared clearly showing a list of all employees on one worksheet with Gross, Tax, Net calculations, housing allowances and pension contributions as applicable Individual persons must sign to receive their salary unless a written (signed letter) has been received from the individual in circumstances such as sickness or travel Each Country Director must authorise the payroll on a monthly basis. It is the responsibility of the FAM to ensure any salary advances or float repayments are deducted from the salaries on a timely basis Payroll Payroll to be run on a monthly basis, and to be authorised by the Country Director Payroll to be updated on the Pastel accounting system Payroll taxes to be paid to the appropriate tax authority on a monthly basis The payroll should be in line with the Global Salary Scale as approved by Restless Development International All signed documentation on salaries on contracts should be kept in a locked HR file. Specifically a filed copy of the appointment letter or any more recent letter updating remuneration should be filed and checked as corresponding to the payroll Salary details for all new employees should be submitted to Restless Development International for approval with an anticipated 48 hour turnaround timeline Salary Communications All Salary Communications should state the Net Salary value with estimated Gross Salary Value (dependent on taxes), and clearly communicate that the Net Salary value is what Restless Development commits to paying its staff (not the estimated Gross Salary), as per the Restless Development International Salary Communications template. International Staff International Staff can elect to be paid in their home country, although tax status must be confirmed, with proof of payment of all due taxes sent to Restless Development Int l. Out-of-Country supplements are paid directly by Restless Development Int l. Country Directors All Country Directors to be paid via Restless Development International Whilst paid via Restless Development International they should be included on their own Country Programme Accounts via the Funding Statement Tax Exemptions Each Restless Development Organisation must ensure that all tax liabilities are paid unless a Tax Exemption Certificate has been provided, by the relevant tax authority Tax & Social Security Accounting Country Directors and Country Finance Managers are to ensure all local tax laws are adhered to, and communicated to Restless Development employees. Tax & Social Insurance deductions should be paid on a monthly basis or as per country requirements to the relevant tax authorities. Accounting records should clearly show tax and social insurance calculations Page 24 of 57

25 5.2 Travel Expenses Expense claims will be approved by Line Managers and Country Directors and must be pre-approved by the Budget holder, however in the majority of situations a cash float should be obtained in advance of travelling rather than expenses being claimed retrospectively see section 4.3 Expense claims will also be reviewed by the AFC to verify that the receipts support the claim and that there is sufficient cash to pay the expense claim Restless Development does not cover alcohol as an expense. Alcoholic beverages can only claimed in exceptional circumstances limited to a PR meeting with donors, and must always be approved by the Country Director Country Director Expense claims must be approved by the SMT in International and countersigned by the FAM Use of private vehicles for Restless Development work purposes Items such as use of personal vehicles must follow the Restless Development Travel Policy Fuel payments are paid within the normal payment procedures. No maintenance costs are to be paid for use of Private vehicles unless in exceptional circumstances as agreed with Country Directors. Note that Country Directors can not approve their own private vehicle use; this would have to be expressly approved by the SMT in International Fuel payments must be calculated in accordance to national government mileage allowance rates. All receipts must agree to the log books of the vehicle for payment to be approved 5.3 Insurance Claims Each CD and FAM is required to ensure all insurance policies are maintained, reviewed and paid in accordance with the programme requirements The Procurement Committee must approve the annual insurance reviews, in line with our annual supplier review procedures (section 5.2) Insurance claims must be documented and submitted in accordance with Insurance agreements. It is the responsibility of the FAM to ensure claims are followed up and accounted for appropriately in agreement with Restless Development Int l and the CD. The MC in each programme must be informed of all insurance claims and ensure these have been paid to the appropriate places or individuals. Accounting records should clearly show the movement of insurance related transactions. As part of the Budget submission process, each Restless Development Unit must submit the insurance checklist for approval by Restless Development Int l. Page 25 of 57