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Training on Financial Operations for Officers posted in ...

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Office Management Assistant Course-FINANCE
Resource Person :NassirHosaneePrincipal Financial Operations OfficerMinistry of Ocean Economy , Marine Resources , Fisheries and ShippingSession 2Group : BDate : 12 September,2017
Course Content
Topics to be covered :Legal FrameworkThe Role and Importance of the Finance SectionThe Budget ProcessDisbursement and Payments proceduresRevenue & Cash Management/Receipt Framework and ProceduresPlanning , Control and ManagingAccounting Framework/ComputerisedAccounting System and ManagementAccounting SystemInternal Control SystemDuties andResponsibiltiesof Public Officers
Role of the Finance Section
Role of the Finance section can be better explained by the importance of this section in any Ministry or Department as it is called upon to have a supportive role in the day to day running of the ministry and also in the implementation of GovernmentPolicies.Itis the BLOOD of a Ministry. No money means no salary, no goods ,no services, no capital projects .Therefore, no progress and development in the country.
(i) Role and Importance of the Finance Section
1.Effecting Payments .2.Collection of Revenues3.Maintaining Records and keeping Accounts4.Monitoring and Controlling of Fund5.Preparation of Budget6.Providing Financial Information
1.Effecting Payments
(a)Regular payments are made to Employees in terms of Salaries and Allowances.(Recurrent Expenditure)(b)Payments are also made to suppliers & contractors for services and goods provided to Ministries and Departments( Recurrent and Capital Expenditure)
2.Collection of Revenues
(a)The Finance Section sets up all the structure( Cash Offices)to ensure a proper collection of revenue on behalf of the state. It also ensure debt collections tomaximiserevenue collections.(b)These revenues help in the financing of recurrent and capital expenditure of the Government
3.Maintaining Records and keeping accounts .
(a)All payments and revenues are captured in the TAS(Treasury Accounting System) and are thus properly recorded and accounted for.(b) Vital documents are kept at the Finance Section namely : contract books, Utility registers, Advance & Deposit Ledgers. Also there are daily cash books and monthly cash books for Revenue Department. These documents are essential for the section ,as well as for ensuring Accountability and compliance
4.Monitoring and controlling of fund
(a)Preparation of Monthly & Weekly Forecast of cash flow to be inserted in the TAS at start of Financial year.(Expenditure & Revenue)(b)Close Budget monitoring on a monthly basis(c) Preparation of Quarterly actual expenditure/Revenue and revised forecast for the remaining months.(d) Monthly reconciliation of Abstract of revenue, expenditure , deposits and Advances.(e)These activities help the Government to have a picture of actual estimates to targeted expenditure and to take corrective measures thereon
5.Budget Preparation
(a) The Budget sets out the mission , vision and objectives of the Ministry based on activities , budgetary measures and Capital Projects.(b)Ministry’s targets are set out and Key Performance Indicators are defined.(c) Financial Input are estimated.(d) Human Resources needs inserted.The Finance Section will thus have to prepare a best estimates in terms of financial resources to enable the Ministry to achieve it’s GOALS
6.Providing Financial Information.
(a) Officers from the Finance Section attends regular Management Meeting where it will have to give updates on actual expenditure specially Capital Expenses . Based on these information, Management will have a picture of Achievements and Progressmade.Thiswill help in taking decisions and taking corrective measures, if any.(b) In addition to these, the Finance Section has to Submit returns annually to the Accountant General to be incorporated in the Annual Report of the Government.
Basic Principles for Disbursement
Expenditure, must be charged to the item under which the provision has been made. The exhaustion of an item and the availability of funds under another itemdoesnotjustify the misallocation of charge.Provision for a specific service under one item of the estimate, the cost of specific service should be charged there toi.eto the provision in the Estimates.Credits to an item of expenditure is not permissible unless adjustment of overpayments relates to the current year.Only an officer charged with the duty of controlling expenditure against items of the approved estimates may incur expenditure out of these votes unless authority is given by way of a Departmental Warrant to another officer
Payments/ Disbursement procedures
The officer authorizing payment is responsible for ensuring that the following requirements have been fulfilled either by personal verification or on the basis of appropriate certificates given in the voucher. The following elements should be presentThe services specified have been duly performedThe prices charged are according to the contract or approved rate.Authority has been obtained and quotedThe computations and costing has been verified and are arithmetically correct.The persons or company named in the vouchers are those entitled to receive payment.The store purchased have been duly taken on charge by procurement department.All deductions from salaries, services & goods have been properly made(PAYE,TDS, DEPOSIT REPAID & so on).Appropriate chart of accounts have been charged
Forms of payment vouchers
Other chargesManual pay sheetDeposit repaidSF 1 Local Purchase From indent to final paymentAdjustment vouchers (No cash transaction between ministry)Mileage claim. Salary-Payroll
Certification of Claims-Responsibilty
As per financial procedures claims should be certified before any payment is made(Financial Instructions No 4 of 2013)1.Claims from Public Officers(a) Mileage  Immediate Supervisor Trips were authorized and performed* in accordance with the duties and work plan of the officer.(b) RBF (other than regular RBF)  Immediate Supervisor Trips were authorized and performed.(c) Other travelling (Taxi Fares)  Immediate Supervisor Trips were authorized, performed and rate claimed is as approved.(d) Overtime  Immediate Supervisor Overtime was authorized and performed as required. * On the basis of certificate provided by the claimant
Certification of Claims-Responsibilty
2.Claims from suppliers of goods - Goods of a technical nature(a) Procurement and Supply Officer- whether goods have been duly received and taken on charge(b) Technical officer(s) performing/witnessing commissioning - whether goods meet required specifications, has been properly installed and commissioned.3.Claims from suppliers of goods- Other goodsProcurement & Supply Officer(s): (a) whether goods meet required specifications and where applicable, whether they are in conformity with approved samples(b) whether goods have been duly received and taken on charge
Certification of Claims-Responsibility
4.Claims from suppliers of servicesMaintenance and Repairs of(a) office equipment(b) vehicles and other transport equipment(c) Furniture, fixtures and fittings (e.g. Air conditioning equipment)(d) Plant & equipment (e) buildings & other structuresOffice Management Executive or scheduled officer(s):(a) Maintenance/repair has been carried out as per Maintenance Contract or as required, where applicable on the basis of relevant technical reports.(b) Amount claimed is according to contract or approved quotation
Certification of Claims-Responsibility
5. Claims from suppliers of services(a) Management Consultancy(b) Consultancy in respect of Civil, Electrical, Mechanical and other technical worksScheduled Officer(s):(a) Output delivered/work performed and amount claimed are according to contract6. Claims from suppliers of services- Cleaning and security servicesScheduled Officer(s):(a) Work performed and amount claimed are according to contract7. Claims from suppliers in respect of worksScheduled Officer(s):(a) Work has been carried out as per contract or as required, on the basis of relevant technical reports, e.g. engineer certificate.(b) Amount claimed is according to contract or approved quotation
Responsibility of Departmental Examiner
The Departmental Examiner should ensure the followingcriterias:(a) Claim has been duly certified(b) PV is fully supported by claim and other relevant documents(c) Authority to incur expenditure exists(d) Appropriate item of expenditure has been charged(e) Amount quoted on PV agrees with certified claim and rates applied are as prescribed or otherwise authorized(f) Particulars of Payee quoted on PV are correct
Responsibility of Departmental Examiner
The Departmental Examiner should also ensure that for procurement of goods the following conditions are present in addition to the abovecriterias:(a) ProcurementRs. 100,000 and above: Procurement has been duly approved by DBC/CPB or other legal authority as evidenced by authority reference recorded on GF 1/GF 4 and supported by relevant documents (certified copy of the original)
Responsibility of Departmental Examiner
The Departmental Examiner should also ensure that for procurement of goods the following conditions are present in addition to the abovecriterias::(b) For Procurement belowRs. 100,000: procurement has been duly approved by the Accounting Officer as evidenced by signature of authorized indenting officer and/or other relevant documents.(c) Ascertain from commissioning report that the good has been received, commissioned and certified as being in good running condition
Responsibility of officerAuthorisingpayment
The officerauthorisingpayment is responsible for ensuring that the following requirements have been fulfilled either by personal verification or on the basis of appropriate certificates given on the voucher:-By personal verification(a) the payment is due and the claim has been duly certified;(b) the payment voucher is properly filled in and is supported by original invoices and other certified relevant documents such as delivery notes;(c) the payee named in the payment voucher is the one entitled to receive payment;
Responsibility of officerAuthorisingpayment
(d) the expenditure is classified under the proper vote and item of charge;(e) the claim or invoice is in original and properly relates to the goods/works/ services procured. In exceptional cases, if an original invoice is untraceable, the payment may be processed on the basis of a certified copy of the invoice provided a certificate is given on the voucher that no payment has yet been made.(f) Procurements for the value ofRs. 100,000 and above have been duly approved by DBC/CPB, or other legal authority exists, as evidenced by authority reference recorded on the payment voucher and supported by relevant documents (certified copy of the original),
Responsibility of officerAuthorisingpayment
(f) Procurements for the value ofRs. 100,000 and above have been duly approved by DBC/CPB, or other legal authority exists, as evidenced by authority reference recorded on the payment voucher and supported by relevant documents (certified copy of the original),
Responsibility of officerAuthorisingpayment
On the basis of appropriate certificates given on the voucher(a) authority has been obtained as quoted on the payment voucher;(b) works or services specified have been duly performed;(c) goods purchased have been duly taken on charge or issued for immediate use* by the PSO;(d) the prices charged are according to contract or approved quotation, where applicable;(e) computations and castings have been verified and are arithmetically correct; (f) amounts payable have been entered in TAS and funds are available under the item ; and (g) all proper deductions from salaries or pensions on account of contributions, repayment of advances, or other liabilities have been duly made.
Responsibility of officerAuthorisingpayment
On the basis of appropriate certificates given on the voucher(f) amounts payable have been entered in TAS and funds are available under the item ; and(g) all proper deductions from salaries or pensions on account of contributions, repayment of advances, or other liabilities have been duly made.
Examination of Payment Vouchers Prior to Disbursement
(a) there are standards to be adhered to in ensuring the completeness of Payment Vouchers before submission for payment; and(b) the checks that should be carried out prior to disbursement of funds at the stage when payment vouchers are being “examined and passed for payment” by:-(i) Treasury examiners, in respect of payment vouchers submitted for payment byNonSelfAccounting Departments (NSADs); and(ii) corresponding examiners at the level of Self Accounting Departments (SADs).
Examination of Payment Vouchers Prior to Disbursement
-There are checks to be effected which cover the following types of payments :-(a) Salaries – Payroll;(b) Salaries - Manual pay sheet (Accounts Form 228F);(c) Other Charges (Accounts Form 232);(d) Local Purchases (Goods Form No. 1);(e) Mileage Allowance Claims (ABF 50(f) Deposit Repaid (Accounts Form 260); and(g) Refund of Revenue (Accounts Form 261).(1)AuthorisingOfficer refers to the officer who has been duly designated by the Accounting Officer toauthorisepayments on his/her behalf;
Examination of Payment Vouchers Prior to Disbursement
(2) Validating Officer refers to the officer entrusted with the responsibility to validate payments in the Treasury Accounting System (TAS);(3) Payroll Officer refers to the officer responsible for:- (i) effecting and checking changes (variations) to monthly payroll ;(ii) checkingpayslipsagainst approved variations;(iii) ascertaining completeness of payroll documents, including preparation of required accompanying documents;(iv) reconciling month to month payrolls; and(v) the input of all payroll related data in TAS to generate TASUnvalidatedInvoice Checklist.(d) Department Pay List refers to the list prepared by the Payroll Officer by reproducing the list -
Examination of Payment Vouchers Prior to Disbursement
d) Department Pay List refers to the list prepared by the Payroll Officer by reproducing the list of items appearing on the Payroll Control Statement -Pay List generated by the payroll system and inserting against each item the full TAS code;(e) Department Deduction List refers to the list prepared by the Payroll Officer by reproducing the list of items appearing on the Payroll Control Statement -Deduction List generated by the payroll system and inserting against each item the full TAS code .(4)It should be noted that the checks prescribed are designed to provide assurance to the Chief Cashier of the Treasury (and the corresponding officer in SADs) that Payment Vouchers together with supporting documents (i.e. claims, certificates etc.) form a proper basis for payment. They are not meant to replace checks that should be carried out at the level of Ministries and Departments by Departmental Examiners,AuthorisingOfficers or officers who have the responsibility to certify claims.
Examination of Payment Vouchers Prior to Disbursement
5. Notwithstanding checks carried out by Treasury Examiners,Authorisingofficers of NSADs remain responsible for ensuring that payments are in order and that payment details provided on Payment Vouchers are correct. No amount of scrutiny by Treasury examiners can relieveAuthorisingOfficers of their responsibilities. 6. Any Payment Voucher submitted by a NSAD to the Treasury will be returned back to the NSAD for rectification if the Payment Voucher does not meet the required standards. To prevent undue delays in payments,AuthorisingOfficers should therefore ensure that Payment Vouchers sent to the Treasury are properly filled in and are supported by required documents.
Check list for Examiners
Payment of salaries through Payroll:-TAS Validated Invoice Checklist has been duly signed by the validating officer and the status „Validated‟ is indicated against all expenditure items debited.A.1.2 The Department Pay List (formerly Payroll Recap Sheet) has been duly signed by the Payroll Officer, the Departmental Examiner and theAuthorisingOfficer.The Payroll Summary Sheet has been duly signed by the Payroll Officer and theAuthorisingOfficer.C.1.1 All relevant documents have been submitted, namely:-a) TAS Validated Invoice Checklistb) Department Pay List, supported by:i. Payroll Summary Sheet (Payroll Payment Voucher)ii. Summary of Payments into banks – Original copy of List B (Payment by Bank)c) Duplicate copy of List B, supported by:i. Summary of Payments into banks – Payments by Bank branch
Check list for Examiners
ii. Credit Transfer Listsd) Payroll Control Statement (PCS)-Pay List, supported by:i. SalaryPaysheets(currently known asPaysheets(Bank Option))ii. Certified Overtime, Mileage and other claimse) Department Deduction List, supported by:i. Non-repayable deductions lists (PAYE, CSFPS and other deductions accruing to Government)ii. Repayable deposit lists (Payable to third partiese.gdeposits repayable to M. Aid)(The Treasury Examiner should also check that an item code is inserted against each item in the PCS
Check list for Examiners
C.1.2 Total amount (Net Pay) to be paid as per List B tallies with the Net Pay figure in the Payroll Summary Sheet.C.1.3 In case of manual correction, the amended figures tally with corresponding figures in the Payroll Summary Sheet, List B, Payroll Control Statements (Pay List and Deduction List) and Credit Transfer List.C.1.4 The reconciliation of the currentmonth‟ssalary with that of the previous month has been verified by the Departmental Examiner.
Check list for Examiners
2.Salary manualpaysheet/other Charges/Store Form 1-Local Purchases/mileage Allowance Claims/Deposit Repaid and refund of Revenue.TAS Validated Invoice Checklist has been duly signed by the validating officer and the status „Validated‟ is indicated against all expenditure items debited.A.2.2 The Accounts forms have been duly signed by the designated Departmental Examiner and theAuthorisingOfficer.B.2.1Payee‟sname, ID Number, Designation, Bank Name and Bank Account Number are inserted in full.C.2.1 ManualPaysheetis supported by Deduction Schedule (AF 395) and Deposit Repaid Voucher(s)*.
Check list for Examiners
Duly certified Invoices/Claims* in original from suppliers/grant beneficiaries or other payees (as the case may be) are attached.* In respect of grants, Accounts Form 232 R is accompanied by Application for Disbursement of Grants from parent ministry and signed by Accounting Officer. ( of FI No. 2 of 2014 – Administration of Government Grants refers).* For replenishment ofimprests, all receipts and supporting documents in original and Accounts Form 72 are attached and have been duly certifiedAuthority for mileage claim is quoted.ABF 50 has been duly signed by the Claimant.ABF 50 has been duly certified by the immediate supervisor.
Mode of payment
CashChequesSpecial fund – Two signaturesPayable orders (one signature, computerized generation of P.Os, Payable Order section –concerns self-accountingDepartmnentor treasury Department)Direct Debit(Bank Transfer)Adjustment(Interministry)E-Payment(Registrar General Department)
Adjustment(Interministryor within Ministry)
Cash transactions between Ministries/Departments are prohibited. Financial transactions between Ministries/Departments should be effected by means of an Adjustment Voucher (AV).2. The AV is a document (Accounts Form 245 Revised-Annex I) which is mainly used for the transfer from one account to another by means of a journal entry where a cash movement is not applicable or appropriate, such as :-(a) transfer of revenue or expenditure from one item of revenue or item of expenditure(b).Use of Adjustment Voucher to make payment to other Ministries(Printing Department/Legal Metrology and so on)(c).Retirement of AdvanceImprestA/C(d).Correction of Accounting Errors(Misallocation/Misabstraction)(e).Crediting of Deposits which stand more than Five years in the Deposit A/C BY WAY OF Adjustment.(f).Transfer of Advance Motor car/Motorcycle Balance(g)Write –off of Advances and arrears of Revenue
Below the Line Accounting
1.Advance A/C INCLUDINGImprestAccount2.Deposit AccountDepositsare those money which must be repaid or refunded to other partiese.gdeductions from salaries.Advance– overpayment to make good/ Advance to purchase motor car/ Advance toParastatalBodies due to temporary liquidity problemsAdvance Account are opened for various purposes : dishonoredcheques,Overpayment,lossof cash or store, advance payment to somebody ororganisationand so on.
IMPREST ACCOUNT
Animprestis a sum of money advanced to an officer personally to meet expenditure directly connected with the public services for which vouchers cannot be presented in the normal way so as to ensure practicability & flexibility of payment.Opening ofImprestApplication should be made by Accounting Officer to the Accountant General explaining the purpose of theImprestand the amount needed and the name & grade of theImprestHolder. The Accountant General sanction will be conveyed to the Accounting Officer by an Accountant GeneralImprestWarrant copied to the Director of Audit. The ministry concerned will prepare a voucher for the said amount by debiting the AdvanceImprestitem. Necessary entry has to be made in an Advance Ledger . TheImprestholder should call at the Accountant General’s cash office to collect the sum in cash or else the money may be credited to his/her Bank Account and record it in aImprestcash book(ImprestLedger).All expenses incurred should be recorded in theImprestcash book and duly backed by receipts(Originals)
IMPREST ACCOUNT
)Replenishment ofImprestTheImprestHolder will effect payments and record it on the cash book together with the necessary receipts duly certified . Before the cash is exhausted he should send all the receipts with the cash book to the finance section for replenishment. The finance section will prepare a voucher for the amount spent and debit the proper items for the amount spent to be sent to the Accountant General. TheImprestHolder will collect the amount spent at the A.G cash office or the amount replenished will be credited to his/her bank A/C and make entry of the amountencashedor credited to bank A/C in theimprestledger.Retirement ofImprestBefore the end of the financial year the AdvanceimprestA/C needs to be retired to clear the Advance account. The amount spent will be accounted for by debiting the proper items for the said amount and crediting the AdvanceImprestAccount through an adjustment voucher. The remaining cash balance will be credited to the item of theimprestAccount by remitting the sum toA.GeneralCash office,

A self – accounting ministry/Deptis one whose responsibility to make payments, collecting revenue and managing the accounts of the ministry has been transferred from the Accountant/General to the Accounting Officer of the ministry. Autonomy for examination, payment & revenue collection rest at their level. They are provided with banking facilities and their receipts and payments are made through their own bank accounts. However, the amount entrusted to them by the Treasury from the Bank Of Mauritius are limited to their daily cash requirements only likewise excess amount of their banks arising from revenue collection should be regularly transferred to the Bank Of Mauritius.
Self – Accounting Ministry or Department
Differences between Self Accounting & Non- Self Accounting
Self Accounting
Non self Accounting
Differences between Self Accounting & Non- Self Accounting
Self Accounting
Non self Accounting
THANK YOU FOR YOUR ATTENTION

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Training on Financial Operations for Officers posted in ...