BEFARe Finance Department
1. PURPOSE
- Finance section controls, provide and supervise the whole organization with the required funds to meet its objectives.
2. SCOPE
- Finance section's activities are based on all the organization's activities.
3. RESPONSIBILITIES & AUTHORITIES
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Divisional Manager (Finance & Operations)
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Finance Assistant
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Accountants
4. PROCEDURE
I. Funds Management
- Funds are requested directly from donor depending on the agreement between donor and BEFARE.
- Request for funds is signed by Divisional Manager (Finance & Operation) or Chief Executive and sent to the donor.
- Amount is received in separate bank account for each project in Pak Rupees.
- Amount is drawn from bank as per requirements.
- The cheques are signed jointly by Divisional Manager (Finance & Operation) and Chief Executive.
- Heavy payments are normally made through cheque.
- Bank reconciliation statements are prepared on monthly basis to reconcile Bank balance with Bank statement.
- Cheque books (used and un-used) are kept in locker.
- Cash is managed by the accountant and is checked by Divisional Manager (Finance & Operation).
II. Budget Monitoring
- Budget monitoring is done by Divisional Manager (Finance & Operation) and Finance Assistant.
- There is always a check on on-going activities to ensure that no activity should exceed the budget.
- Forecast expenditure details are prepared.
- Actual expenditure is checked against the forecast to avoid excess expenditure over budgeted.
- Any change required in the budget is always approved by donor.
III. Disbursements
- For every disbursement. There is a request from the concerned unit manager.
- The request is approved by Divisional Manager (Finance & Operation) or Chief Executive.
- Heavy payments are made by cheques which are signed jointly by Divisional Manager (Finance & Operation) and Chief Executive.
- For payments through bank and cash vouchers are prepared.
- Vouchers are prepared by accountant and approved by Divisional Manager (Finance & Operation).
- Vouchers are properly supported by relevant documents like lease deeds, invoices, salary slips, Copy of cheques etc.
- Salary sheets giving details of salary are prepared along with salary slips.
- TA/DA forms are approved by Divisional Manager (Finance & Operation) and Chief Executive
- It is also checked that disbursements should be in accordance with budget and should not exceed the limit.
- Amount received from donors are checked for accuracy against the funds request
- Amount received from donors is confirmed from bank statement and bank advice.
- Amount received other than donors are properly documented with invoices, bank statements etc. Such receipts are normally for the books which are sold to other Organizations.
- Bank receipt voucher is prepared as all cash receipts are deposited into bank.
V. Donor Reporting
- There are different reports for different donors depending on their specific time and format requirement.
- Reports are normally prepared quarterly, six monthly and annually.
- Reports are signed by Divisional Manager (Finance & Operation) and Chief Executive.
VI. Advances
- Advance requests are given for trainings, salaries to teachers in camps, rent of buildings etc.
- There are no personal advances allowed.
- Advances are approved by Divisional Manager (Finance & Operation) and Chief Executive.
- Advances are given in cash for payment of utility bills, office supplies etc but salaries are transferred through bank to Resource Center account for disbursement of salaries in the refugees camps.
- The detail of advance is attached with voucher as supporting document.
- When the original documents showing payments are received from camps, the advance is then expensed out.
RECORDS RELATED TO MANAGEMENT REVIEW MEETINGS
- Budgetary Documents
- Cheque Books.
- Bank Reconciliation Statements
- Bank statements
- Cash Books
- Budget and Expenditure forecasts.
- Salary Sheets
- Salary Slips
- Vouchers with supporting documents
- Cash Book
- Soft and hard copies of previous reports. Donors' specific reporting formats. Accounting system
- Donor's specific reporting format.
- Accounting system.