1. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA SWHISA Finance & Accounting System Project: SWHISA Presenter: COA This presentation will probably involve audience discussion, which will create action items. Use PowerPoint to keep track of these action items during your presentation In Slide Show, click on the right mouse button Select “Meeting Minder” Select the “Action Items” tab Type in action items as they come up Click OK to dismiss this box This will automatically create an Action Item slide at the end of your presentation with your points entered.

2. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA The Principles of Financial Management Custodianship –This refers to the stewardship or safekeeping of the organisation’s resources. ; Accountability –Accountability is the moral or legal duty, placed on an individual, group or organisation, to explain how funds, equipment or authority given by a third party has been used Transparency –Systems must be established whereby all financial information is recorded accurately and presented clearly, and can be easily disclosed to those who have a right to request it. Consistency –The financial systems of an organisation should be consistent over the years so that comparisons can be made, trends analysed and transparency facilitated. This does not mean that the systems may not be refined. Integrity –There must be no doubts about how funds are being utilised, the records must be a true reflection of reality and proper procedures are set up and followed by all staff. Standard Documentation –The system of maintaining financial records and documentation should observe internationally accepted accounting standards and principles.

3. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA The Building Blocks of Financial Management Accounting Records –Every organisation must keep an accurate record of financial transactions that take place to show how funds have been used. Accounting records also provide valuable information about how the organisation is being managed and whether it is achieving its objectives. Financial Planning –Linked to the organisation’s strategic and operational plans, the budget is the cornerstone of any financial management system and plays an important role in monitoring the use of funds. Financial Monitoring –Providing the organisation has set a budget and has kept and reconciled its accounting records in a clear and timely manner, it is then a very simple matter to produce financial reports which allow the managers to assess the progress of the organisation. Internal Controls –A system of controls, checks and balances – collectively referred to as internal controls – are put in place to safeguard an organisation’s assets and manage internal risk. Their purpose is to deter opportunistic theft or fraud and to detect errors and omissions in the accounting records. An effective internal control system also protect staff involved in financial tasks.

4. Financial Records of SWHISA 1.Financial Accountability CCO is responsible for the management of all SWHISA project resources. CCO is responsible for maintaining of accounting system that contains records and controls sufficient to ensure the accuracy and reliability of project financial information and reporting. The system of accounting and/or record keeping must track the advances received and disbursed expenditures.

5. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Financial Records of SWHISA 2. Cash operation SWHISA receive funds from Hydrosult; All cash in hand will be kept in cash safes. Petty cash fund of 30,000 Birr established to meet various expenditures of recurring or non-recurring nature. It is recommended that any single payment exceeding Birr 1,500 should be paid by cheque. Two bank accounts maintained in Addis Ababa and Bahir Dar. Addis Ababa bank account will used to receive fund from Canada and to effect payment in Addis Ababa surrounding. The Bahir Dar bank account will be used for daily operation. In addition we have opened bank account in each woreda. There are two authorized signatures to effect disbursements from a bank account at CCO. Woreda coordinators also authorized for their respective bank account.

6. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Financial Records of SWHISA 3.1 Travel Advance & Settlement Travel, purchase or other advance is given in advance depending on the situation upon filling Advance Request Form. The advance should be settled as the end of the travel, after completion of purchasing activity by filling proper settlement form.

7. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Financial Records of SWHISA 3.2 Advance to Woreda Coordinator Advance is transferred to our coordinator for office operation and project activities upon Request. The advance is settled on convenient time but not exceed three months usually.

8. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Financial Records of SWHISA 3.3 Advance to PI (Bureaus) Advance is transferred to PI for project activities upon request or by initiation of our consultants; The advance usually settled by PI on their convenient time.

9. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Financial Records of SWHISA 4. Advance Request Form

10. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Financial Records of SWHISA 5. Travel Allowance Settlement Form

11. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Financial Records of SWHISA 6. Expenditure Settlement Form

12. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Financial Records of SWHISA 7. Project Advance & Settlement Form

13. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Financial Records of SWHISA 8. Group Perdiem Settlement Form

14. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Reporting Requirements Expenditure by budget line; Expenditure by outcome; Expenditures of Addendum Plan; Expenditure by PI. ( upcoming)

15. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Actual Report Expenditure by budget line; Expenditure by outcome; Expenditure by Addendum plan ( recently issued)

16. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Financial Records of SWHISA Report by Budget Line

17. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Financial Records of SWHISA Report by outcome

18. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Problem on Report Unable to produce report of expenditures by PI; -Limitation of ABAK software to produce such a report;

19. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Action to be taken Communicate HYDROSULT to add one field in ABAK software to held expenditure by different cost Centers (woredas & Bureaus);

20. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Procurement Lessons learned from 4 th year –Unable to finalize all the procurement in that particular budget year Reasons: Long time taken to get final list & specifications; Long time taken to prepare & evaluate the bid; Late delivery; Shortage of foreign currency; Power shedding.

21. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA Procurement Strategy to expedite the procurement –Preparing Separate procurement plan (schedule) which encompasses the ff activities: Identifying requirements (goods, material, related services); Preparing Specifications and/or statement of work; Preparing and floating bid; Evaluating offers and awarding contract or PO; Receipt, Inspection and Acceptance of good; Effect Payment; Distributing to PI.

22. SWHISA 5th Year Work Plan Session, Bahir Dar, 06 Aug 09, COA THANK YOU