1. Keep management OF A NPO in shape
Orientation & Training in Financial Management for members of the Board/
Management Committee

2. Copyright SHAPE (078-672-NPO)
Contents
Internal control measures
Accountability
Cheque requisition
Issuing of cheque
Issuing of receipt
Deposits
Petty Cash
Preparation for annual audit
Copyright SHAPE ( NPO)

3. Copyright SHAPE (078-672-NPO)
Internal controls
Issue a receipt for all monies (cash and cheques) received
Copyright SHAPE ( NPO)

4. Copyright SHAPE (078-672-NPO)
Internal controls
Keep all cash safely in a cash box and locked up
Copyright SHAPE ( NPO)

5. Copyright SHAPE (078-672-NPO)
Internal controls
Bank all cash received within working days
Copyright SHAPE ( NPO)

6. Copyright SHAPE (078-672-NPO)
Internal controls
No cash on hand used to make any payments
Specimen
specimen
Copyright SHAPE ( NPO)

7. Copyright SHAPE (078-672-NPO)
Internal controls
All payments to be made by cheque/ electronic funds transfer (EFT) except for petty cash
Copyright SHAPE ( NPO)

8. Copyright SHAPE (078-672-NPO)
Internal controls
Cheques to be issued in the name of the beneficiary (i.e. the person or organisation to be paid for products or services)
Copyright SHAPE ( NPO)

9. Copyright SHAPE (078-672-NPO)
Internal controls
Check bank statements and do the bank reconciliation by the 7th of a month
Copyright SHAPE ( NPO)

10. Copyright SHAPE (078-672-NPO)
Internal controls
Prepare a monthly income and expenditure statement and present to the Board
Copyright SHAPE ( NPO)

11. Copyright SHAPE (078-672-NPO)
Accountability
An Organisation is accountable when they can account for all finansial transactions (income and expenditure) and present this in a annual financial report
Copyright SHAPE ( NPO)

12. Copyright SHAPE (078-672-NPO)
Accountability
The annual/audited financial statements for the past financial year is completed within 3 – 4 months
APPROVED
Copyright SHAPE ( NPO)

13. Copyright SHAPE (078-672-NPO)
Accountability
The organisation operates a bank account in the name of the organisation; a cheque account is recommended
Copyright SHAPE ( NPO)

14. Copyright SHAPE (078-672-NPO)
Accountability
The organisation shall have a record keepting system in place, e.g. A book-keeping system, receipt books, files, etc.
Copyright SHAPE ( NPO)

15. Copyright SHAPE (078-672-NPO)
Accountability
The organisation shall have a annual budget in place. The budget needs to be reviewed on a quarterly basis and the neccessary adjustments made
Copyright SHAPE ( NPO)

16. Copyright SHAPE (078-672-NPO)
Accountability
The organisation shall have a financial policy in place. This document shall be read in conjuction with the Constitution
Copyright SHAPE ( NPO)

17. Copyright SHAPE (078-672-NPO)
Accountability
The organisation shall ensure that signatories shall be in line with NPO regulations:
Office bearers shall not be related to one another, e.g. in terms of family or friendship ties
Copyright SHAPE ( NPO)

18. Copyright SHAPE (078-672-NPO)
Accountability
The organisation shall implement expenditure guidlines when executing financial transactions, e.g. cheque requisition forms
Copyright SHAPE ( NPO)

19. Copyright SHAPE (078-672-NPO)
Accountability
The organisations shall implement control measures in terms of assets and equipment, e.g. through keeping an asset register
Copyright SHAPE ( NPO)

20. Cheque requisitions Date Cheque number Amount Name of recipient
Name of person who submitted the request
Approval:
Signatures and date
Description of the payment or purchase
Name of person responsible for payment or purchase
Name of the beneficiary
Copyright SHAPE ( NPO)

21. Signatures of two signatories
Issuing of cheques
Cross cheque
Name of beneficiary
Date
Cross out “or Bearer”
Amount
Signatures of two signatories
Complete counterfoil:
Date
Beneficiary
Description
Amount
Sign
Note: Cross cheque pnly if issued to a supplier for services
Copyright SHAPE ( NPO)

22. Copyright SHAPE (078-672-NPO)
Issuing of cheques
Tips:
No cash cheques to be issued
No blank cheques to be signed
No mistakes allowed on cheques
Fully complete cheque counterfoils
Copyright SHAPE ( NPO)

23. Issuing of receipts
Name of person or organisation from whom cash was received
Date
Fill in the cash amount received
Sign the receipt
Keep cash in a cash box until deposit
Fill in the purpose for which the payment was received
Note: Use one receipt book at a time – keep them locked up
Copyright SHAPE ( NPO)

24. Copyright SHAPE (078-672-NPO)
Issuing of receipts
Tips:
Complete receipt for all cash received
Make sure the receipt is numbered
Use the carbon at the back to duplicate
Add the organisation’s stamp to the receipt
Keep the receipt book locked
Copyright SHAPE ( NPO)

25. Information of the person making the deposit Name of the beneficiary
Making deposits
Information of the person making the deposit
Name of the beneficiary
Date
Amount:
Cash
Amount:
Cheques
Amount:
Cheques + cash = Total
Reference number
Account number
Note: Fill in the reference number or name, e.g. “boarding”
Copyright SHAPE ( NPO)

26. Copyright SHAPE (078-672-NPO)
Making deposits
Tips:
Deposit all monies (cash and cheques) received
Deposit all monies within 1 – 3 working days
Pre-collect deposit slips from bank
Complete deposit slips before going to the bank
File deposit slips with bank statements
Copyright SHAPE ( NPO)

27. Petty cash Date Amount Description of purchase Signature
Fill in date, details and amount of each transaction
Attach invoice or cash slip
Complete the petty cash journal at the end of each month
Add up totals and calculate balance at end of month – carry over
Use petty cash vouchers to complete journal
Note: Fill in a voucher for each purchase
Copyright SHAPE ( NPO)

28. Copyright SHAPE (078-672-NPO)
Annual audit
Use the following documentation in preparation:
The bank statements of the organisation e.g. 1 April to 31 March
Copyright SHAPE ( NPO)

29. Copyright SHAPE (078-672-NPO)
Annual audit
The cash book with monthly income and expenditure
Copyright SHAPE ( NPO)

30. Copyright SHAPE (078-672-NPO)
Annual audit
All financial records for the financial year, such as cheque books, cheques, deposit slips, receipt books
Copyright SHAPE ( NPO)

31. Copyright SHAPE (078-672-NPO)
Annual audits
All proof of payments: accounts, invoices, cash slips, receipts, cheques
Copyright SHAPE ( NPO)

32. Copyright SHAPE (078-672-NPO)
Annual audit
Petty cash: journal and vouchers of each month
Copyright SHAPE ( NPO)

33. Copyright SHAPE (078-672-NPO)
Annual audit
All minutes en cheque requisitions: record of all financial descisions
Copyright SHAPE ( NPO)

34. Copyright SHAPE (078-672-NPO)
Jaarlikse oudit
Prepare a summary of the income and expenditure of the financial year, also do the final bank reconciliation
Copyright SHAPE ( NPO)

35. Copyright SHAPE (078-672-NPO)
Annual audit
Place all documents pertaining to the financial year on file for safe keeping
Copyright SHAPE ( NPO)

36. Support and assistance
NPO Helpdesk operated by SHAPE:
Telephonic on (Franzu Badenhorst)
Send an to:
Visit the webpage and follow the links:
Visit our office at:
14 Steytler Street, De Rust, Western Cape Province
Copyright SHAPE ( NPO)