SIMPLE ACCOUNTING RECORD FOR COMMUNITY MICRO-PROJECT For Community Project Management Committee By Community and Social Development Agency (CSDA)

  CSDP mandates all communities that is benefiting from this programme to open an account with commercial bank. This is the main account called Community Project Account. This account will be operated by CPMC members who are democratically elected and the signatory members will be as follows:   The Chairman; The Financial Secretary and The Treasurer. Mandate: The Chairman and any one out of other two, but it must include the Chairman.

ACCOUNTING PROCESS   Accounting is defined as a statement of transaction, expressed in words and figures according to book keeping form. Book keeping has been defined as the art of recording of business transaction in such a manner that financial position of an entity could be ascertained at any time. The community is expected to keep the following books of account: Cash book Receipt and Payment Materials Register Labour Register Overhead Register Cheque Register Store Register Receipt Register Bank reconciliation file Retirement

CASH BOOK  This is the recording of transaction involving the movement of cash. The community will open two cashbooks for each of account opened with bank. The Financial Regulations expect the community to be issuing Cheque for any of their transaction or service rendered to the community. The principle of double entry must be also be prevailed for any activity which has debit entry must have corresponding credit entry, that is debit the giver and credit the receiver. For instance, if the money is withdrawn by the CPMC, the cashbook will be credited and receipt and payment will be debited showing the analysis of transactions. CASH BOOK FORMAT DR   Date Cheque No. Particulars Amount

(RECEIPT AND PAYMENT (INCOME AND EXPENDITURE)   This record shows the movement of money in and out of purse. Although community keeps cashbook but an analysis of payment would not be reflected. As a result of this, the amount withdrawn from bank will be credited to cashbook, likewise it will be debited to receipt and payment account. The credit side of this account will reflect analysis of transaction such as payment of labour, purchase of cement, transport etc.  RECEIPT AND PAYMENT Date Name Particulars Amount

MATERIALS REGISTER   This represents one of integral part of payment side. The register shows the date, unit and rate of material purchased. The materials physically seen at the site will be recorded by CPMC. Date Detail Qty Rate Amount Total

LABOUR REGISTER  The labour activity in project implementation is vital and must be recorded. This will serve as an evidence of payment for both skilled and unskilled labour. The wage paid must be acknowledged by the labourer. This can be done either collectively or individual depending on the terms of contract existing between CPMC and the service provider. Date Name Detail of job done Amount Total Signature

OVER HEAD ACCOUNT  The running of project will include an indirect expense which is referring to as overhead. This expense is incurred purposely for the smooth running of the project such as meetings, transport, stationery, indirect materials etc. Some of these transactions have receipt while other doesn’t have. Date Particular Amount Total Name Signature

CHEQUE REGISTER  The issuance of cheques to suppliers or service provider must be well recorded. Issue Date Cheque Number Name of the PAYEE Details Expenditure Amount Signature and date.

Date Detail Cash Kind Total COMMUNITY CONTRIBUTION  CSDA encourages owner’s contribution to ensure sustainability of micro-project. The percentage of contribution by the community should be captured. There must be appropriate record keeping on cash and kind contributed by community. Date Detail Cash Kind Total

Receipt Issue Out Date Detail Qty Signature

Date Amount Withdrawn Materials Labour Overhead Total Expenditure THE REPORT   The community is expected to submit financial report on monthly, quarterly and annually basis on micro-project implementation. This report will be accompanied with the bank statement and reconciliation for each period of report mentioned. Date Amount Withdrawn Materials Labour Overhead Total Expenditure Cash at hand Cash at bank

  The CPMC is expected to at least once in a month reconcile their accounts with a view to determine any disparity or correctness of the content of Bank Statement and cashbook recordings: A simple example is shown below: Closing Balance as per bank statement xxx Less unpresented Cheque (xx) xx xxx Add Bank Charges xx xx Less Credit by Bank not in Cashbook (xx) xxx Cash book balance. xx

Thank you for your attention. Retirement:   Each Community is expected to ensure that all receipts relating to all purchases as well as the place where the workers sign for their wages are properly kept for reference and verification purpose. The receipt should be kept in a file and should be made available for scrutiny when needed for verification. Thank you for your attention.