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

2. 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.

3. 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

4. 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For instance, if the money is withdrawn by the CPMC, the cashbook will be credited and receipt and payment will be debited showing the analysis of transactions.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

5. (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 As a result of this, the amount withdrawn from bank will be credited to cashbook, likewise it will be debited to receipt and payment account.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

6. 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

7. 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

8. 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

9. 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.

10. 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

11. Receipt Issue Out
Date
Detail
Qty
Signature

12. 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

13. 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

14. 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.