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WelcomeUNOPS Finance Workshop
November 4, 2008Colombo
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Welcome
Role of Finance
Disbursements / Payments
Settlements
Situation Analysis Bank Charges / Reconciliations
Procurement
Salaries & other HR Issues
Atlas System
Field Practical Problems
Joel Joel
Chithra
Rushdhi
Joel
Angelo
Shankar
Stanley & Kalani
Chithra / Rushdhi
Participants
Agenda
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Disbursements
Regular Payments
Advances
Operational Advance
Supplier
Staff
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Advances
Operational Advances are meant to pay for pro(ject
expenses incurred at the field offices Replenishment of operational Advances must be with in
the established limit of the Cash Custodian Each request for Advances must be supported by:
Cash Forecast, Cash and or Bank Book Extract Listing of All Outstanding advances given in the field Cash Count Sheet Bank Reconciliation Reconciliation of Funds Received and Settlements All the above documents to be certified by the Cash
Custodian
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Advances - Supplier
Can only be made, If:
The Goods / Services are specialist in natureand is not provided by any one else.
Is expressly stated at the time of quoting /bidding for goods / services by the supplier
Payment of advance must have been
expressly authorized in the Contractualdocument (Contract, Purchase Order)
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Advances - Staff
Mainly paid for:
authorized official Travel related expenses
To purchase project related items, that haveto be paid for in Cash (Eg: Purchase fromGovernment Departments, etc
Other project expenses authorized in writing
by the Cash Custodian / Project Manager
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PAYMENTS
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Types of Payments
Payment for Purchases
Rental / Lease payments
Progressive payments Payments to Staff
Payments for Services rendered
Petty Cash Payments
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COMMON DOCUMENTS NEEDED FOR
ALL TYPE OF PAYMENTS
PO Payment
Original Payment Request to be signed by
authorized person
Original Atlas PO (Approved and Vendorsigned)
Atlas ReceiptNO PO Payment
Original Payment Request to be signed by
authorized person
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ADDITIONAL DOCUMENTS NEEDED FOR
DIFFERENT TYPES OF PAYMENT
PAYMENT FOR PURCHASES
Original Invoice Original RIR
Vendor Evaluation Table (Signed, dated)
Quotations Purchase Requisition
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PAYMENT FOR FUEL
Original Invoice from supplier
Original Fuel coupons (with authorizedsignatures from fuel station and UNOPS)
Original Contract agreement (if relevant)
Vehicle log sheet(Vehicle No, date, no of liters
filled and signature) Price Fluctuation to be supported in writing by
the supplier as per the contract
ADDITIONAL DOCUMENTS NEEDED FORDIFFERENT TYPES OF PAYMENT
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Original Contract/Lease agreement
Original Invoice(if relevant)
Rental / Lease Payments
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Progressive payments are made mainly againstContracts for Civil works and will require :
Copy of Contract
Certificate of Payment Works/Services certification report and
measurement sheets signed by the Contractor andUNOPS
Copy of variation orders where relevant Final Completion certificate(For final payment only)
No claim certificate certified by the Contractor(Forfinal payment only)
Progressive Payments
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PAYMENT TO SUB-CONTRACTORS
Advance Payment
Copy of Contract
An Invoice from client requesting payment (amountshould be indicated)
Advance Payment Guarantee Should be given inadvance to get confirmation from the financial
institution) Performance Guarantee(Should be given in advance
to get confirmation from the financial institution)
ADDITIONAL DOCUMENTS NEEDED FORDIFFERENT TYPES OF PAYMENT
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TRAVEL Related Payments Original approved Travel Authorization
Original F10 Form(Foreign mission)
To claim on actual basis, original invoices and other
relevant documents need to be submitted(Exceptional)
Overseas Travel to be supported by copy of Ticketand Boarding Pass
Credit Card charges are not reimburseable International Staff paid in Colombo.
National Staff paid at Field Office
Payments to Staff
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Payments to Staff
ICA Staff Salaries
Original Certificate of Payment dulycompleted, approved and authorized
Original Time Sheets
Original Leave Forms (Sick leave exceeding 2days to supported by a medical certificate)
Copy of Contract Agreement
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MAINTENANCE / WAGES ETC.)
Original Contract agreement (whererelevant)
Copy of Log sheet(E.g:Generator
maintenance log, Time sheet, VehicleRunning Chart)
Payments for Services rendered
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Petty Cash
Meant to pay for expenses that are petty innature
Must not be used to circumvent procurement
procedures Must not be used to purchase assets
Single payment must not exceed US$100.00 or
its equivalent Payments must be authorized by an authorized /
approving officer.
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PRACTICAL ISSUES AND PROBLEMS INDISBURSING PAYMENTS
Vendor
Vendor / Bank details does not match withAtlas vendor profile
No letters authorizing the collection of check
by third parties
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PAYMENT DOCUMENTS
Invoice not addressed in the name of UNOPS
Not in chronological order
No date and validity period mentioned on quotations Qty, amount etc. stated in the invoice does not match
the quotation/requisition
Quotation / Evaluation does not match with requisition
details. E-mail quotation does not contain company name,
logo and or contact details
PRACTICAL ISSUES AND PROBLEMS INDISBURSING PAYMENTS
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PRACTICAL ISSUES AND PROBLEMS INDISBURSING PAYMENTS
All the documents provided should belegible and readable.
When submitting copies of purchaserequisition and quotations reference mustbe made to the original payment requestor PO.
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RIR does not match the description/quantities in theinvoice/requisition/quotation
RIR does not reference vendor name and invoice noand Atlas PO no
RIR does not have the sequential no
RIR is not signed by the authorized person
Vehicle Log Sheets are not properly filled (missingvehicle number, fuel filled, service, etc)
PRACTICAL ISSUES AND PROBLEMS INDISBURSING PAYMENTS contd..
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Payments below US$2,500
Upto US$100
Original Invoice from Supplier or Vendor
Between US$100 and US$2,499
Purchase Requisition
3 written Quotations
Original Invoice from Supplier
RIR
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Monthly Submission
Bank Reconciliation Statement
Cash Book Extract
Cash Forecast Fund Reconciliation Statement
Advance Outstanding Listing
All the above to be certified by the CashCustodian
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Advances issued in Field
Contract Payments
Salary Advances
Field Petty CashDeposits
The above records to be maintained
separately and available on request
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Settlements contd..
Are supported by the following documentation Request for purchase of goods / services must be approved in
advance
Have gone through a competitive bidding process and aresubstantiated by Quotes from the bidders
Evaluation and basis of selection of supplier is documented
Reasons for deviation are documented, approved by anauthorized person and attached to the payment request.
Invoice(s) are authentic, reflect the descriptions of items,quantities, amounts requested, arithmetically correct.
RIR details match those with Requisition, Quotes and Invoices Name of Payee and on Invoice are same.
All the above follow chronological sequence
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Settlements
Settlements are disbursements made atthe field office from the operationaladvance.
Prior to making a disbursement, you mustensure the following : That the payment requested is in accordance
with the approved budget of the Donor
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Settlements contd..
All Payment Vouchers must be seriallynumbered
Every Payment Voucher has been reviewed foraccuracy of information against the attachedsupporting documentation and bears the namesand signatures of approving and authorizingofficials.
Check issued against the payee Name, Signature, ID# and Date of person
receiving the payment
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Settlements contd..
Payment Vouchers for settlements mustbe despatched to Colombo Finance withthe following Documents for posting
settlements to ATLAS. Disbursement Voucher Listing in Voucher
Serial Order(must contain the followinginformation; Date, Voucher Number, Payee
Name, Description, Acount Code, Amount) Voucher Analysis by Account Code
Electronic copy of above
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Settlements contd..
It is the responsibility of the Field Finance Staffis to ensure that all relevant supportingdocumentations are attached to paymentvouchers prior to despatching same to Colmbo.
Settlements can be sent to Colombo asfrequently as required, but at minimum it shouldbe once a month.
Since settlements have an impact on futureAdvances that can be given it is imperative thatthey are submitted timely to avoid any cashcrunch.
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Procurement / Logistics
Requisition must be raised for purchasesof goods / services and approved by theauthorizing official.
Minimum 3 Quotes must be called toensure that procurement process iscompetitive and transparent.
Evaluation and Recommendation ofsupplier selected
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Procurement / Logistics
Logistician to raise RIR upon receipt ofGoods.
RIR must be dated and serially numbered
RIR Must reference PO Number, Name ofVendor, Invoice number, Description andQuantities of goods received.
RIR must have the relevant signatures.
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Human Resources
Salary Payments to Staff must be madeonly from Colombo
Salary Advances, if any and authorizedcan be made from only Colombo
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Atlas Payment Process
DocumentReceived &logged inFinance
8.30 9.00AM
1.30 3.30PM
DocumentsReviewed
and enteredto Atlas
Atlasvouchers are
BudgetChecked
Atlas PayCycle run at
3.00 PM
Chequeswritten
manuallyand EFTs
uploaded toBank
MatchingProcess inNew York
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Atlas Payment Issues
Problems:
No Funds in the Budget results in Budget error
Automated matching process runs in New York only once a day
Match Exceptions are errors detected due to
Vendor not in approved status Invalid PO Status, etc
Pay Cycle / Matching Process either delayed or does not rundue to system problems
Wrong Banking Information for Vendor
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Contingencies:
Minimum 2 work days required to effectpayments
In case of other urgent payments, normalprocessing time will be longer
Atlas Payment Issues
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Atlas Payment Issues
Constraints Cheque number is system assigned
Cheques / EFT Manually written and uploaded to Bank
If receipient bank is not in the Electronic banking network,then this will be sent as a manual transfer from UNOPSbank which might take a minimum of 5 working days
Availability of Signatories
Local Bank Holidays including Saturdays
Central Bank cut-off time for EFT payments
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