lkoc finance workshop

7/31/2019 LKOC Finance Workshop

1/38

1

WelcomeUNOPS Finance Workshop

November 4, 2008Colombo


2/38

2

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


3/38

3

Disbursements

Regular Payments

Advances

Operational Advance

Supplier

Staff


4/38

4

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


5/38

5

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)


6/38

6

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


7/38

7

PAYMENTS


8/38

8

Types of Payments

Payment for Purchases

Rental / Lease payments

Progressive payments Payments to Staff

Payments for Services rendered

Petty Cash Payments


9/38

9

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


10/38

10

ADDITIONAL DOCUMENTS NEEDED FOR

DIFFERENT TYPES OF PAYMENT

PAYMENT FOR PURCHASES

Original Invoice Original RIR

Vendor Evaluation Table (Signed, dated)

Quotations Purchase Requisition


11/38

11

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


12/38

12

Original Contract/Lease agreement

Original Invoice(if relevant)

Rental / Lease Payments


13/38

13

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


14/38

14

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


15/38

15

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


16/38

16

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


17/38

17

MAINTENANCE / WAGES ETC.)

Original Contract agreement (whererelevant)

Copy of Log sheet(E.g:Generator

maintenance log, Time sheet, VehicleRunning Chart)

Payments for Services rendered


18/38

18

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.


19/38

19

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


20/38

20

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



21/38

21


All the documents provided should belegible and readable.

When submitting copies of purchaserequisition and quotations reference mustbe made to the original payment requestor PO.


22/38

22

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..


23/38

23

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


24/38

24

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


25/38

25

Advances issued in Field

Contract Payments

Salary Advances

Field Petty CashDeposits

The above records to be maintained

separately and available on request


26/38

26

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


27/38

27

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


28/38

28

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


29/38

29

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


30/38

30

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.


31/38

31

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


32/38

32

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.


33/38

33

Human Resources

Salary Payments to Staff must be madeonly from Colombo

Salary Advances, if any and authorizedcan be made from only Colombo


34/38

34

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


35/38

35

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


36/38

36

Contingencies:

Minimum 2 work days required to effectpayments

In case of other urgent payments, normalprocessing time will be longer



37/38

37


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


38/38

38