MALAIKA SOCIAL
ORGANIZATION (MASO)
PROCUREMENT POLICIES,
REGULATIONS AND PROCEDURES
Drawn By:
MASO,
P. O. Box 489, Sumbawanga Municipal, Rukwa Regional, Southern Highlands Zone, Tanzania,
East Africa
Location: Msakila Road, Jangwani Street,
Phone: +255 763744649
Authorization
This is to certify that this Financial
Regulations and Accounting Manual were approved
by the Governing Board during it’s......................................... (Amended November 2022) and signed on its behalf by:
Chairperson of the Governing
Board
Signature: -------------------------------
and
MASO Official Stamp
Date: 29/09/2018
Table of Contents
GLOSSARY TERMS
|
Accounting Officer |
Means the Executive Director
of the Organization |
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|
Accounting Policies |
These are the principles, conventions and procedures adopted by management in preparing and presenting financial statements. |
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|
Accounting Procedures |
Those methods transactions. |
that |
the |
Organization |
use |
to |
handle |
accounting |
|
Accounting Records |
These are the source
documents used to post accounting transactions and books of account maintained by the Organization. |
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|
Accrual Accounting |
Recording of financial transactions when due rather
than when paid
or received. |
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|
Administrative Assistant |
An officer
performing various accounting/finance/administrative tasks per contract of employment and/or
as assigned by his/her supervisor, the Finance Officer. |
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|
Annual General
Meeting |
This is the general
meeting of the Organization, called
once at the end of every
calendar year, before the beginning of the following year before 31st December of each calendar year.
This is the highest summit
of the Organization. |
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|
Appointing Authority |
Means the Governing Board or any other person to
whom the Governing Board
has delegated such powers to appoint |
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|
Assets |
Means both movable and immovable assets of the Organization including bank deposits, cash at hand, property & equipment, etc. |
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|
Auditors’ |
Statutory auditors
as appointed by the Governing Board. |
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|
Basic Salary |
Means the salary of an employee before adding benefits and effecting any deductions. |
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|
Books of Account |
Consist of books of prime entries,
ledgers and registers used to record financial data. These can be manual
or maintained electronically. |
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|
Budget |
A plan of action expressed in monetary terms which shows
how an organisation intends
to achieve its objectives. |
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|
Chart of Accounts |
A listing
of accounts being
used and their
corresponding code numbers. |
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|
Constitution |
The set of by-laws
which forms the foundation of the organization |
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|
Donor |
External providers of funds to the Organization |
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|
Employee |
Means a staff member
of the Organization |
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|
Employer |
Means MASO and includes delegated authority in which case the power to appoint, terminate appointment of or exercise of disciplinary powers
over employees is vested in the Committee or person. |
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|
Employment |
Means the performance by an employee of a contract of service. |
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|
External auditor |
Mean auditor
not a member of the organization registered by NBAA |
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|
Financial Statements |
Summary of accounting transactions in respect of each accounting period/reporting period for the purpose of providing
information on the operating
results or the financial position of the Organization on a particular date. These shall comprise of Statement Comprehensive Income; Statement of Financial
Position; Statement of Cash Flows; Statement of Changes in Equity
and Notes to the Financial Statements. |
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|
General Ledger |
A balanced
database holding the balances of all accounts |
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|
General Meeting |
The meeting
that shall be attended by all organization members with and |
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|
|
without the right to vote, however,
only those members
with the right to vote, can vote in any proceedings of the meeting. |
|
Governing Board |
Members of the Governing Board of the Organization as appointed per MASO’s Constitution. (The ultimate decision making
body of the
Organization). |
|
Grants |
Means funds due from Donors. |
|
Manager or Unit manager |
An employee individual or as a team (This includes
programs, projects and administration officers since they have managerial responsibility for the policy unit) |
|
Manager Team |
Team comprising of the executive secretary and those senior managers and /or officers
as may be determined by the executive committee |
|
Members |
Member organizations of MASO or member of the executive committee as the context
requires |
|
Organization |
Shall mean MALAIKA
SOCIAL ORGANIZATION (MASO) |
|
Policies |
Administrative policies as articulated herein and as may be amended by the executive Committee from time to time. |
|
Probation |
The period
of initial employment, during which appointment to the position is yet to be confirmed by the employer. |
|
Published information |
Means any information that
has been officially authorized by the executive committee to be released
for the public
domain. |
|
Supervisor |
Employee responsible for overseeing and supporting the work of subordinate employee (s). |
|
Voucher |
Documentary evidence to support an accounting transaction and basis of recording transactions. |
|
Working day |
Day in which an employee would
normally be required to work (i.e Monday to Friday).
A working week has 5 working days. |
CHAPTER ONE
ORGANIZATION
BACKGROUND
1.0 ORGANIZATION BACKGROUND
Malaika Social Organization (MASO) is a non- governmental organization with its headquarters in Rukwa region was established in 2019 and got registered in
October 24th 2019 in Tanzania under NGO Act 2002, registration number 16NGO/0724 to conduct their work lawful in Tanzania.
The Malaika Social Organization (MASO)
is complements government efforts by contributing to the implementation of various
policies and hence brings development to the citizens.
THE MISSION AND VISION OF ORGANIZATION
The vision for the Malaika
Social Organization (MASO) is to have a
Society with great awareness on social health and economic.
The mission for the Malaika
Social Organization (MASO) is to improve living standard of people in Tanzania through providing proper education on maintaining the community development for sustainable livelihood.
MASO Values
In all its operations, MASO is guided by the following principles, which shape the internal culture:
v Integrity
MASO value upright behavior and operate
with complete transparency
and lack of ambiguity. Our actions are legal, clear, consistent, honest and truthful. MASO have zero tolerance
for corruption, subterfuge and hidden agendas.
o
MASO are financially responsible and as an organization, observe full fiduciary
compliance
o
MASO conduct it selves
professionally in its internal and external dealings and observe the highest levels of ethical conduct
and management
o
Our decision-making rationale, our
position on issues and the actions we implement are transparent to all our Donors & stakeholders and are all
clearly linked to the interests of our Donors & stakeholders.
v Accountability
MASO is accountable to its Donors and stakeholders
in all. We manage our resources responsibly and use them efficiently to provide value for money.
We are fully responsible for all our actions and track all we do as well as the results with appropriate documentation. We learn from our mistakes and acknowledge and celebrate our successes.
v Innovative
MASO value the creation of new solutions to existing
and new challenges. We are dedicated to creating new policy advocacy approaches and place a premium on designing
innovative solutions for the MASO community related issues. We celebrate
innovative solutions.
v CUSTODIANSHIP
Resources of the organization are effectively, efficiently, honestly and faithfully used to achieve
the resources and assets are safeguarded from loss, fraud, waste and inefficient use
v . COST EFFECTIVENESS
Funds are used carefully to maximize quality and minimize
cost Culture of ensuring value – for – money is promoted and observed.
v TRANSPARENCY
Decision and action
are fully documented an unusual circumstance is explained. Financial
information is accurately recorded, clearly presented
and disclosed without undue delay to those who have a right to request it. Files and documentation are maintained in good, accessible
order at all times.
v SUSTAINABILITY
Management of resources, assets and planning are done in a manner that enhances and safeguards the sustainability of MASO and its work.
2.0
THE OBJECTIVES OF THE PROCUREMENT POLICY, REGULATIONS &
PROCEDURES MANUAL
The objectives of the Manual can be summarized as:
a.
To describe the procurement policies,
procedures and guidelines;
b.
To prescribe authority
spending limits and responsibilities of all persons involved so as to enforce procurement discipline and control.
i.
Application of the Manual
These regulations shall be referred to
as the Procurement Policies and Procedures of MASO and are designed to ensure that all assets of MASO are properly
accounted for and controlled.
The purpose of this manual is to describe the procurement policies
and procedures of MASO. It describes the
procedures to be used when engaging with external stakeholders such as in
procurement and programming partnership, MASO staff shall implement
the applicable mandatory standards, best practice processes and
facilitating tools to comply with legal requirements and maximise such
engagements effectiveness by considering the following;
§ Implementing a tender process
§ Conducting a due diligence
assessment
§ Selecting the best counter-party, and
§ Negotiating the contractual terms of engagement
§ Segregating, limiting
and delegating expenditure authorisations, all at “arm’s length”
and with regards
to objective criteria,
including the
§ Effectiveness
§ Quality, and
§ Pricing, of the proposed
goods/services
The manual also details the internal controls and
specific methods to safeguard MASO’s assets, check the accuracy and reliability
of the recorded accounting data, and promote efficiency in the accounting operations.
ii.
Intended Users
It is expected that the manual will be carefully
read and understood by all accounting and administrative staff who handle the processing and recording of accounting
data. The manual should also be used for reference by the Executive
Director, Senior Employees; Members of Finance
and Administrative Committee; Governing
Board Members, other officers of MASO and current and potential donors.
iii.
Amendment
These Financial Regulations may be reviewed, amended
or modified as required with the authority or
approval of the Governing Board. However, the Executive Director
in consultation with the Chairperson of
the Finance and Administration
Committee may make revisions pending approval from the Governing Board.
iv.
General Policy
All MASO staff members shall exercise utmost control
over the finances and other assets of the Organization
and shall comply in good faith with the Procurement Policies and Procedures.
They shall conduct themselves in a manner befitting their status as employees of the Organization.
v.
Scope
The manual documents the policies and regulations
adopted by the Governing Board for recording all accounting and administrative transactions and the concepts that
underline these processes. It also provides guidance as to the accounting procedures
that should be applied to financial transactions for the purpose of recording
and compiling the needed financial
information.
The specific objectives of the manual are:
§ To ensure that all transactions giving rise to the recognition of assets, liabilities, income and expenditure are accurately and properly recorded
in the books of account;
§ To ensure
that adequate and sufficient accounting records are maintained to support the operational activities of the Organization;
§ To provide
timely and reliable
data to the management and Governing Board Members for decision-making;
§ To provide relevant information to all MASO Donors & stakeholders.
§ To provide a framework
for financial planning
and reporting; and
§
To provide a reference guide for staff in carrying
out their day-to-day
activities.
vi.
Professional and Statutory Requirements
The accounting procedures prescribed in this manual have been developed
to comply with:
§
Generally Accepted Accounting
Principles (GAAP)
GAAP comprises the various principles, conventions
and concepts used in the recording and processing of accounting
transactions. They include conservatism (prudence), consistency, materiality, historical cost, and going concern concept.
3.0SHORT TITLE AND COMMENCEMENT
This document shall be cited as MASO
Procurement Policies, Regulations & Procedures Manual January 2016 (amended in October 2018)
4.0
USE OF THE MANUAL TOGETHER WITH OTHER OPERATIONAL DOCUMENTS
The procurement policies, regulations
and procedures included in this Manual shall be applied in conjunction with other rules and
regulations promulgated by the Governing Board of MASO for better conduct of MASO’s Operations. Where there is a conflict
in the interpretation of these regulations in relation to any other regulation, the matter shall be referred
to the Governing Board for determination.
This manual complements the following documents:
v
Financial Regulations and Accounting Manual
v
Human Resources Manual
v Any other relevant
directives applied by MASO to guide implementation of its day to day activities.
5.0 COMPLIANCE WITH THE PROCUREMENT REGULATIONS AND PROCEDURES MANUAL
All employees are required to adhere to
the provisions of the Procurement Regulations & Procedures Manual in discharging their daily activities.
6.0 MAINTAINANCE OF THE MANUAL
These procurement regulations and
procedures have been prepared for application by MASO. Changes to the manual
shall be made when there are major variations in business processes or when there are
significant changes in accounting framework
(FRS/IAS/IPSA).
When such a need arises, the Executive
Director shall propose the required amendments to the Governing Board for approval.
Such changes shall be adequately documented for future references. Also, notes
of version numbers, effective date and main areas of change shall be documented.
CHAPTER TWO FINANCIAL RESPONSIBILITIES OF OFFICERS DEALING
WITH THE MASO’S FINANCES
8.0
THE EXECUTIVE DIRECTOR
The
following are the comprehensive financial
responsibilities of the Executive Director:
1.
The ED is vested with the coordinating authority and shall be responsible to the Finance
and Administration
Committee and the Governing
Board.
2.
The ED is responsible to the Finance and
Administration Committee of the Governing Board for all financial matters of MASO. The ED is responsible for proper management of MASO’s funds.
The ED shall be assisted
by the Finance Officer and other senior staff on the day to day management of MASO’s resources.
3.
The ED shall be responsible for implementing various
policies and programmes laid down by the Governing Board and shall act within the scope of the MASO Constitution. The ED shall
also limit the financial expenditure within the
approved budget estimates unless otherwise approved by the Governing Board.
4.
The ED shall, in all financial matters relating to
Staff salaries, fringe benefits etc., act in accordance with the instructions contained in the MASO’s Human
Resources Management Manual. Any deviation made in this regard shall have the prior written approval by the Governing
Board.
5.
The ED shall operate the bank accounts
as one of the authorized signatories.
6.
The ED shall be responsible to submit the following below to the Governing Board and donors:
·
Income and expenditure Budget Estimates for the year within the agreed timeframe;
·
Quarterly progress reports comparing
the actual expenditure with the budget estimates with explanation on significant variances;
·
The financial statements of MASO
(Statement of Comprehensive Income; Statement of Financial Position; Statement
of Changes in Equity & Notes to the financial Statements including the Management’s performance for the year)
duly audited by an Independent auditor within four (4) months after the close of the Financial year.
7.
The ED is empowered to authorize all
payments whether of a capital or revenue nature, as specified in the approved annual
budget.
8.
All budgeted personal payments to staff members
shall be authorized by the ED. Such personnel
costs shall include but not limited to: salaries; salary advances, loans to employees
etc.
9.
The ED shall authorize payments after the Governing
Board’s approval of the budget/ and principal
activities.
10. As a standing arrangement in the absence of the ED all his/her powers
set out in this manual
will be
exercised by the next most senior officer. This devolved authority will only
apply where there are pressing reasons to act urgently, and a matter cannot be put off until the ED returns.
9.0
FINANCE OFFICER
The Finance Officer shall report directly to the ED.
Below are the comprehensive financial responsibilities of the Finance
Officer:-
The Finance Officer shall be responsible
for managing financial and accounting transactions for MASO. These
duties shall include, but not limited to the following:
·
Preparation of annual financial statements in
compliance with accrual Basis (or any other applicable reporting
framework such as IFRS);
·
Preparation of quarterly financial
reports/management accounts for use by the Finance and Committee,
Donor etc;
·
Monitoring of the expenditure to
budget trends and providing adequate explanation for significant variances, if any and recommend
measures or actions to ensure optimum utilization of resources;
·
Application of adequate internal
control measures, and other initiatives expected to have a financial impact, assuring that critical
financial issues are appropriately addressed, and routinely conduct analysis and review to ensure accuracy of
classification and postings of expenses according to the budget.
SPECIFICALLY THE FINANCE OFFICER WILL BE RESPONSIBLE TO:
(i)
Control all financial
aspects of the Organization and project related
activities;
(ii)
Monitor financial transactions and accounting records;
(iii)
Supervise all accounting staff;
(iv)
Ensure that all financial results and supporting documents are produced
on time;
(v)
Ensure that financial
data are produced
accurately and reliably;
(vi)
Investigate and give reasons /recommendations for any material
differences between the budgets and actual results;
(vii)
Ensure that reports required by management and Donors are timely; accurate; reliable and agree with underlying accounting records;
(viii)
Liaise with auditors
and tax authorities and resolve any related
problems;
(ix)
Assess and appraise the accounting staff working under his/her supervision.
(x)
Submit the following
to the ED:
·
Monthly bank reconciliation statements for all bank accounts
·
Monthly Cash flow statements
·
Quarterly Operating statements
·
Annual Accounts (complete set of financial
statements: Statement of Comprehensive Income;
Statement of Financial Position; Statement of Cash Flows; Statement of Changes in Equity and disclosure
notes to the financial statements or other statements applicable to Accrual basis of accounting)
(xi)
Assets of the organization are safeguarded against
losses. The Officer shall also be responsible
for taking reasonable steps for the prevention and detection of fraud, errors and other irregularities.
(xii)
All debts due and/or advances from employees are
recovered per directives in this Manual and
the Human Resources Management Manual.
(xiii)
The Finance Officer shall also be the custodian of the following
valuables:
a) Title Deeds
b) Cheque Books
c)
Vehicle Registration Cards
d)
Insurance Cover Notes
e) Receipt Books, Pre-numbered Payment Vouchers and related documents
(xiv)
Maintain accounting records and classifies the
receipts and payments as income and expenditure correctly.
(xv)
Maintain a separate bank statement file for
safekeeping of original bank statements for all bank accounts.
(xvi)
Submit to the External Auditors
all required records,
returns, books of accounts, documents, and any other
information required for the performance of their duties. The FO shall also reply adequately to all queries
and observations raised by the External Auditors.
DELEGATION
Delegation of financial
responsibilities in the absence of office holder shall be undertaken in the manner prescribed in the Human resources policies.
CHAPTER THREE
BASIS OF PROCUREMENT & FINANCIAL MANAGEMENT
10 BASIS OF PROCUREMENT & FINANCIAL
MANAGEMENT
The
following shall be the basis for procurement and financial management
and control of resources:
a.
The Financial Regulations & Accounting Manual;
b.
The Human Resources
Manual;
c.
The Procurement Manual
d.
The approved annual budget;
e.
Other approved circulars;
f.
Funding agreements and/or Memorandum of Understanding with donors and partners;
g.
IAS/IFRS/IPSA and Tanzania Financial Reporting Standard (TFRS)
No.1 guidelines;
h.
The constitution of the Organization
i.
Directives and decisions of the Finance
and Administration Committee and the Governing
Board and;
j.
Other relevant Government circulars as may be issued from time to time.
PROCUREMENT
PROCEDURES AND CONTROLS
11.0 PROCUREMENT PROCEDURE CHART
The MASO procurement shall be performed, prepared
and maintained in accordance with the Procurement Procedure Chart set out
in Table 1 of this Manual. The
Chart of Procurement may be subject to change
from time to time to take into account necessary improvements and expansion of MASO activities.
PROCUREMENT PROCEDURE CHART
|
TOTAL COST TO VENDOR |
PROCUREMENT REQUISITION FORM (PRF) |
COMPETITION DOCUMENTS AND PROCEDURES |
ADDITIONAL SUPPORTING DOCUMENTATION FOR CONTRACT |
MINIMUM AWARD DOCUMENTS |
PAYMENT METHOD |
|
000 -500,000 TZS |
Not required Email to request procurement using
petty cash. Copy Project / Department Manager and Sector Leader |
|
Nothing more than stated
- email |
Receipt |
Cash payment |
|
500,000-2,500,000 TZS |
Required Approval by PM/ ED or Board
member and FO |
Minimum of 1 quotation required
from phone enquiry, Published prices, market
surveys, quotations, websites, catalogues |
Nothing more than stated
- PRF and 1 quotation |
LPO or Services Sub
Contract; Invoice; |
Cheque
/ Bank Transfer |
|
2,500,000-25,000,000 TZS |
Required Approval by ED/ Board
chairperson and FO |
Minimum
of 3 quotations required
Procurement Committee |
Procurement Committee Notes Bid Comparison sheet (of available
offers) Offers Submitted Sole source justification (if needed) |
Purchase Order or Services
Sub Contract; Invoice; |
Cheque
/ Bank Transfer |
|
25,000,000-150,000,000 TZS |
Required Approval required by ED and by Board chairperson |
Provide specifications or ToRs Written RFQ/ITB Minimum of 3 written
quotations . Procurement Committee. MUST GO TO Public
Tender/ Advert IF 150,000,000 TZS AND ABOVE |
Procurement Committee Notes Bid Comparison sheet (of available offers) Copy of advert/ tender
announcement Offers Submitted Sole source justification (if
needed) |
Purchase Order
or Services Sub Contract; Invoice; |
Bank Transfer |
12.0
CONTROLS OVER PAYMENT
VOUCHER
a)
All payments shall be accompanied with a pre-numbered
payment voucher duly signed by the Accounting Officer
of the Organization;
b)
Any invoices, bills or statements relating to any
payment, shall be attached to the payment voucher before
it is signed, except where the volume,
size or weight of such attachments do not
allow. Where such a situation occurs, those other attachments shall be
separately filed and suitably
cross-referenced to the relevant
payment vouchers and be available for inspection by the Accounting Officer;
c)
Payment vouchers shall be completed
in all respects, detailing the authority and the coding
of the
expenditure, full description of the expenditure, reason for payment and the
quotation of the number of bills or invoices
in order to ensure correct identification of the payments;
d) All payment vouchers shall be signed by the Finance Officer and the authorizing officer.
e)
The Authorizing Officer shall sign all alterations
to the particulars given in a voucher. Any reverse
of data entered into the system shall be reviewed and authorized by the FO or
any other person appointed by the ED.
This control should be done even if the system can allow data to be altered in the system without authorization. For
control purposes all alterations should be backed by
proper authorization procedures.
f)
All employees with responsibility to certify
vouchers shall exercise great care to ensure that the certification they sign is in accordance with the facts. The
responsible employee shall be held liable where an improper payment is made as a consequence of an incorrect
certification.
13.0 VOUCHER AUTHORIZATION LIMITS
1.
MASO shall maintain petty cash funds at its officers
to enable efficient payment of small expenditures for which
cheque payment is not practicable:
The following
limits shall be observed when signing payment
vouchers.
a)
In the interest of safety, unless otherwise
determined by the executive committee Petty Cash Float maximum value shall be set at TZS 1,000,000/=, with
individual payments made out of petty cash limited
up to TZS 100,000/= per transaction.
b)
Amount up to 100,000 can be authorized by the
respective line managers and amount exceeding 100,000 should seek ED Authorization.
2.
Petty cash funds shall be segregated from other
funds kept in the custody of the finance and
Administrative assistant in a locked safe (main officer). The person charged
with custody of petty cash shall be responsible for its safekeeping.
i.
Petty cash funds may not be used or loaned for any
purpose than specified herein. The balances
officer and or the executive secretary shall conduct periodic spot checks of
petty cash balance. Any
discrepancies shall be noted in writing and brought to the attention of the executive secretary.
ii.
The finance officer shall prepare an
accurate and timely
report each month of all petty cash each expenditures for review and approval of the executive
secretary.
14.0 CONTROL OVER PAYMENTS
i.
For any payments whether by cash or cheque, the
Accounts Officer /Clerk shall satisfy himself/herself
that the person claiming the payments is in fact the person authorized to receive it or is the authorized
representative of the payee. In case of a representative, the payee's documents authorizing payments to
the representative shall be attached to the relevant original
payment voucher.
ii.
All payments other than those from the petty cash
fund shall be by way of cheques and or Bank
Transfers prepared in a manner that makes the possibility of subsequent
alterations difficult.
iii.
Replacement of a lost cheque shall
not be made until its non-presentation to the bank is proved and the bank has been instructed to stop the payment of the lost cheque.
iv.
MASO shall use Pre-numbered Payment Vouchers. The Pre-numbered Payment
Vouchers together
with their respective supporting documents shall
be stamped "PAID" indicating the relevant cheque number on the face
of the voucher.
v.
The FO or other designated officer shall, on a monthly basis, prepare an expenditure report to enable
analysis of the actual expenditure per Activity Implementation Plan against the Activity Budgets (i.e. Total
Expenditure per Activity Vs Activity Based Budget) for expenditure control purposes.
15.0
PETTY CASH MANAGEMENT
i.
There shall be a petty cash float of TZS 1,000,000/= to
facilitate payments of small payments. The Accounts Clerk shall
administer this float on
an imprest system;
ii.
Payment from the petty cash fund shall be effected
upon raising a PV which shall be pre-numbered
and duly signed and approved
by the FO.
iii.
The Accounts Clerk shall ensure that at any given point in time, the imprest cash balance and the paid voucher amounts are equal to
the full imprest amount. The Accounts Clerk shall make requests for reimbursement of amounts paid out of the petty cash float;
iv.
The Accounts Clerk shall prepare a cash float replenishment request to the FO.
v.
All advances out of petty cash which will be
supported later shall be treated as Imprest. Such payments shall be documented and shall be made upon approval of the ED.
vi.
The recipients of petty cash shall sign the payment
vouchers as acknowledgement of receipt. The petty
cash supporting documents shall be stamped “PAID” to avoid recycling and shall
be filed away in petty
cash voucher numerical sequence;
vii.
Receipts and invoices
shall bear the date on which the payments were made;
viii.
The
Accounts Clerk shall
prepare payment voucher,
write an open cheque and forward the two to the ED for authorization and second signature respectively;
ix.
The Accounts Clerk
or the designated officer shall count petty
cash balance at the time of replenishment and sign on the petty cash replenishment form;
x.
Independent surprise petty cash verification shall be undertaken from time to time and documented on the petty cash certificate;
xi.
A monthly petty cash reconciliation shall be performed
by the Accounts Clerk to ensure all expenses from petty cash have been properly
accounted for;
xii.
Petty cash count must be performed
at the end of the year and results documented
in the petty cash count certificate which shall be duly signed by the officer verifying
the cash count;
xiii.
The Accounts Clerk shall withdraw the cheque for replenishment of petty cash float;
xiv.
Payment in cash from the petty cash float shall be
made for any single transaction up to the maximum
of TZS 100,000/=. Any
payment above this limit shall be approved by ED with clarifications or made by cheque.
16.1. QUOTATIONS
The procurement committee will decide
on the best way of obtaining quotations from competitive suppliers
before preparing a Local Purchasing Order
(LPO)
16.2. LOCAL PURCHASE ORDERS (LPO)
16.2.1.
LPO system shall be
used to ensure appropriate control
over purchases. Local purchase orders
must always be used for procurement of goods and services, including
but not limited to:-
i.
Purchase of office supplies
ii.
Purchase of general
supplies
iii.
Purchase of Capital Goods
iv.
Foodstuffs
v.
Building Repairs, maintenance and services.
16.2.2.
All LPO books in use shall be kept in the custody of
a person appointed by the Administrative Manager.
The said person shall ensure unused LPO leaves are safely secured and shall
ensure no unauthorized access
to the documents take place.
16.2.3.
All purchases (other than miscellaneous purchases
from petty cash) should be authorized by finance
officer and must be consistent with specific line items in the respective
budgets to be charged to ensure funds are available.
16.2.4.
No staff shall participate in the decision to
purchase goods, services and contract paid by MASO funds when the staff, person or a relative of the staff stands to benefit. (Conflict
of interest)
17.0.
PROCUREMENT PROCESS
USING LPO
17.1.
All purchases must be initiated by the user and
shall locate the supplier(s) based on the Procurement committee decision or obtain a minimum of three quotations and must be unique
for item. The quotations shall then be supplied
to the ED/FO, who shall thereafter authorize
rising of LPO after being satisfied with the prices
and ascertaining budget
provisions.
17.2.
The Executive director and Finance officer shall
sign an LPO. As soon as possible an LPO is
signed, the
person in-charge of its preparation should ensure submission of accounts’ copy
to accounts section before proceeding with the purchase.
17.3.
The accounts section shall maintain a file for LPO
copies and before effecting any payment supported by an LPO a cross reference to the accounts
copy must be made, which copy shall then be removed from the file
and attached with the other documents supporting the payment. Under no
circumstances shall payments
be made without cross-reference to the accounts’ copy to ascertain the
authenticity of any other copy used
to support payment. LPO copies for which payments have been made shall be
stamped PAID as soon as payments are made out.
17.4.
Payment will be effected only after goods have been received or service rendered.
When an invoice is received
for goods or services rendered,
the user project/unit shall check and certify the invoice. A copy
of Goods Received Note (GRN) or certificate of work
done must be attached to the invoice. The invoice will then be passed to
accounts section for initiation of payment process. Where an LPO had been used
the Finance section shall make a
cross-reference of the LPO vis avis the invoice to certify the arithmetic correctness prior to sending the invoice to the Executive Director
for authorization.
17.5.
All goods must be received
by the storekeeper/person appointed who shall issue a Goods Receive Note to authenticate receipt of goods in
stores. In case of provision of services, the logistics officer shall certify that work was done satisfactorily.
18.0. MATERIAL USAGE AND STORAGE
18.1.
Where goods are purchased for use over an extended
period i.e. the goods are not for immediate use or
consumption, such goods after being acquired shall be entrusted to the custody
of an authorized officer (storekeeper). The Storekeeper shall prepare and maintain suitable
records reflecting receipt
of goods in the Goods Received Note duly signed
by him/her. Upon goods being issued he shall record such issue in the Goods issued Note (GIN).
18.2.
Stores issue must be authorized by the Executive Director. Materials Requisition Form shall be filled by the individual requesting
organization material from store. Material issued shall be acknowledged
receipt by signing
the material requisition form.
18.3.
Where goods are required for immediate use (i.e storage not required) details of the goods required shall be sent to the authorized officer
(storekeeper), who shall enter in record details of such goods bought and consumed.
19.0. CONSULTANCY:
19.1.
LPOs are not required for Consultancy services. All
Consultants should have a signed contract. Consulting
work should not be started prior to having a signed Contract, unless explicit
written permission received in advance from the Executive Director.
19.2.
Consultancy services shall include:-
i.
Project proposal/Concept papers development
ii.
Implementation
iii.
Evaluations
iv.
Researches
v.
Facilitation i.e. workshops,
seminar, meeting etc.
19.3.
Contracts for consultancy shall be drafted
and maintained by the Executive Director. The following are important contracting information and procedures for task orders:
i.
The scope of work
ii.
Terms of engagement
iii.
Time frame to complete the assigned task
iv.
Rate of payment
19.4.
Once the Consultant completed his/her work, the Consultant shall be expected
to complete a claim form (Or submit an invoice) for ensuring
accurate billing. A copy of singed contract, activity reports shall accompany all Requests for payment.
19.5.
All materials produced
or acquired as a result
of any consultancy work shall remain the property of MASO. MASO retains the exclusive right to publish
or disseminate reports
arising from such materials.
20.0. PAYMENTS
20.1.
The Organization may make payment
in the following cases:
i.
Payment for requisition of capital assets
ii.
Payments for services
rendered to the Organization
iii.
Statutory payment
iv.
Any other category
of payment with prior approval
of the Board of Directors.
21.0
FIXED AND MOVABLE ASSETS CONTROL-RECORD &
CUSTODY Nature and Purpose
i.
Fixed Assets are properties, which an organization uses in discharging its operations. They comprise of the office premises,
equipment, motor vehicles,
furniture and fittings;
ii.
All acquisition of fixed assets shall be made in
accordance with the provisions of this Procurement Manual
and the approved budgets;
iii.
All capital expenditures shall be
within the approved annual budget. The Finance and Executive
Committee shall approve any expenditure incurred beyond the approved budget.
iv.
The procurement procedures for capital items shall
be in line with table 1 of this Procurement Manual.
v.
There shall be maintained
in the finance section a register of all the fixed and movable assets of the Organization.
vi.
All fixed and movable assets of the Organization
shall be under the overall custody of the FO.
Any transfer from one location to another, theft, disposal,
irreparable damage must be reported
to the Executive Director within 2 days of such happening and all records suitably amended within one week thereof. Any loss must be reported
to the Board.
vii.
It shall be unlawful for any person to appropriate or re-locate the said Assets.
22.0
GENERAL REGULATIONS
22.1
Fixed Assets Register
The Finance Officer shall be responsible for establishing and maintaining a Fixed Assets Register for assets procured and owned by the Organization. The FAR shall show the following:
o
Category of the Item
o
Status
o
Item Name (Description of the item)
o
Serial or Code number
o
Purchase Date.
o
Purchase reference
o
Location of the item
o
Purchase Value
o
Depreciation (if can be estimated)
Annual physical inventory count shall be done by the
Finance officer/administration officer or any other employee assigned to do so and results
compared to the asset count listing. This list shall
be sent to the Finance
Officer to update
the FAR if there are any changes.
i.
Responsibility for assets
All staff using Organization’s assets have a
responsibility to take care of the assets and ensure that the assets are protected against theft and
excessive were and tear. Employees shall sign Equipment possession form which lists the items under
their custody.
ii.
Categories of Organization’s assets
Fixed Asset should have a Code/tag.
Recording in the Fixed Asset Register will be in the format of the following;
MASO/Asset Category/Asset number
The Asset Categories are;
·
Office Equipment (OE)
·
Office Furniture & Fittings (OF)
·
Computer & Electrical Equipment (CE)
·
Motor Vehicle (MV)
·
Field Equipment (FE)
Asset number represents three digits in chronological order
iii.
Procurement of fixed assets
All purchases of fixed assets shall be subject to the provisions
of Procurement Chart in Table 1.
iv.
Capitalization
Any acquired asset which is expected to
be on use for more than twelve months shall be capitalized in its respective class of asset. Classes shall include but not limited to the list on section 22.1 (iii) of this manual.
Capitalization policy
The organization shall capitalize any
item of capital in nature and with a value above TZS 50,000/= as a unit
cost. Items below this value will be charged direct to Profit & Loss
Account as normal running cost either on administration or elsewhere depending
on the reason for the purchase.
v.
Identification of assets
All assets shall be clearly marked with “MASO” identification code with a three digits code against
it. This code shall also be shown in the FAR.
vi.
Disposal of fixed assets
o
Every fixed asset has a useful life
after which it is prudent for the business to scrap it because it is no longer economical to operate. Some fixed assets
are scrapped before reaching their
economic useful life because of damage caused by accident, careless operations, due to lack of preventive
maintenance or obsolescence. Whichever reason
leading to its disposal, the Organization shall seek the authority of
the Governing Board before disposing any assets;
o
Disposal of fixed assets shall be by
tender after advertising in the local press and in line with regulations in the Procurement Manual. Assets shall be sold to the highest bidders or as
provided in the Organization’s Procurement Manual. Any proceeds on disposal of
fixed assets shall be treated other income in the Statement of Comprehensive Income.
o
The ED shall initiate the disposal
proposal and request for authorization by the Governing Board. Adequate justifiable reasons shall be given for
declaring a fixed asset obsolete
or unserviceable and where possible they should be supported by professional certificates;
o
When the Organization proposes to
scrap a fixed asset, it shall be required to complete a Fixed Asset Disposal
Note;
o
Motor vehicles shall be replaced at
five (5) years; disposal of Vehicles should follow MASO procedures for disposing
old vehicles as outlined in the Vehicle Management Policy.
o
The disposal process for the
Organization’s assets shall follow procedures outlined in the Procurement Manual;
o
A fixed asset shall be removed from
the Memorandum Financial Records on disposal or when the asset is permanently withdrawn from use and no future
economic benefits are expected to be derived
from its disposal;
vii.
Insurance
o
The Organization shall take
appropriate insurance policies to protect the assets against loss. The
Organization shall determine the various risks against which the insurance
cover shall be taken. These risks
shall include: fire; theft and all significant risks. Comprehensive insurance cover shall be taken for vehicles.
o
The Finance Officer shall be
responsible for effecting all insurance policies with reputable insurance brokers;
o
All purchases/additions of fixed
assets shall be timely added to the register or schedule of insured property as soon as arrangements to ensure it are finalized;
o
The insurance cover under each
policy shall be reviewed annually by the Finance Officer. The full replacement value shall be covered.
viii.
Valuation
Fixed assets shall be valued at historical cost. Cost shall include all expenses incurred
in bringing the asset in its operating position, location and condition.
Accounting policies
related to fixed assets are elaborated under the “Accounting Policies” part of this Manual.
23.0. CUSTODY OF VALUABLES:
23.1.
The following documents
and records are hereby deemed valuable and shall be kept in safe custody:
i.
Title Deeds
ii.
Licenses, statutory books and documents
iii.
Cheque books
iv.
Receipt books
v.
LPOs of all kinds
vi.
All duplicate keys and master key for office, motor vehicles
vii.
Employment contracts
viii.
All official files other than secret files
ix.
Basic books of accounts.
24.0.
DISPOSAL AND WRITE-OFF
OF ORGANIZATION’S PROPERTIES
24.1.
No write –off from the books of accounts of any
asset shall be made without approval of the Board of Trustee.
24.2.
Where any property of the Organization needs to be
disposed off by sale on account of such property being of no use to the Organization, the valuator shall
nominate at least 2 competent officers (team of survey) to survey the property
and report on whether or not the said property
warrants disposal.
25.0. USE OF MOTOR VEHICLES:
25.1.
All motor vehicles unless otherwise specified by the
valuator, shall be pooled and the responsibility to ensure proper maintenance of the vehicles,
maintenance of pertinent records on the vehicles e.g. use of log
books including fuel consumption, maintenance cards, use of consumables e.g.
tires and tubes and analysis of all
such records to ascertain proper utilization of the vehicles shall rest with
the Executive Director or an officer
appointed by him/her.
25.2.
The Officer appointed (the logistics officer) shall
in all cases be responsible for determining and advising on all matters connected with custody of vehicle and safe usage.
The Officer will be in-charge
of route planning
(daily) of the Organization’s motor vehicles.
25.3.
All repairs of motor vehicle
shall be done at approved
garages only. A MASO Executive
committee shall draw up a
list of garages to be used by the Organization and the list shall be reviewed
from time to time on the basis of experience gained.
25.4.
All used parts e.g. tires etc shall be surrendered to the administration section and receipt/acknowledgement note issued. The Executive Committee
above shall from time to time recommend
to the Executive
Director on disposal
of such used items.
25.5.
The use of motor vehicle shall be recorded in daily
vehicle logbook. A booklet should be kept in each vehicle. The time of departure and return, the origin and
destination, purposes of trip, beginning and ending mileage, cost Unit code and the signature
of the person authorizing travel shall be entered on for each trip.
25.6.
The use of organization motor vehicle is restricted to the authorized
organization staff only. Otherwise authorization from Administration should be obtained
prior to borrowing
a non-authorized staff.
25.7.
The officer appointed to manage transport shall be responsible
for reviewing the log book
periodically and preparing
a consumption report on monthly basis for review by the transport
officer (TO).
25.8.
All fuel purchase
must be made at designated service stations, using the fuel requisition form which include
vehicle registration number, number of liters of diesel,
petrol or oil, etc.
25.9. In the event of an accident while operating the Organization’s vehicle, the following steps should be followed:
v If the
accident is other than minor, if a fatality is involved, or if any difficulty
is anticipated, the Executive Director
shall be notified immediately.
v Any injured person should be taken to the nearest hospital/clinic for medical treatment.
v Regardless
of how minor the accident may be, a complete accident report must be prepare by
the driver involved, and same
submitted to the Administrative Manager through the logistics officer, as soon as possible.
v Comply with Tanzania regulations applicable to accident reporting
procedures and to Tanzania police instructions
v Do not abandon the vehicle or leave it unattended.
25.10.
All vehicles should contain the following equipment:
v Tire changing
equipment
v Spare tire
v
Basic range of tools
25.11.
Complaints regarding the condition of vehicles shall be reported
immediately to the TO, through
the logistics officer.
26.0. USE OF TELEPHONE
AND FAX
26.1. Telephone:
The receptionist shall maintain a record of all
local and overseas calls indicating the name of person requesting the call, the
number called, and the cost center to be charge. Personal calls must be charge
to individual accounts. Copy of the records shall be sent to accounts
section that shall route the same to all project leaders to certify the calls before effecting payments and charging. In all such cases the Assistant Finance Officer
will be responsible.
26.2. Fax service
The receptionist shall maintain a record of all
messages transmitted. The record must indicate the sender, recipient, date and time of transmission and cost center to be charged. Personal fax messages must also be
charged to individual accounts. A copy of this shall be sent to Assistant
Finance Officer, who shall arrange for payments and recovery of the charges from the staff (if any), and charge the projects.
27.0.
ADVANCE, LOANS TO STAFF:
27.1.
MASO does not provide loans to staff. Instead the
Organization will facilitate staff and encourage them to get loans from financial institutions or from the credit
and saving society established by staff. However MASO may provide
advances in case of:
a.
First appointment or on transfer
b.
Payment of Scholl fees of an officer or children
of an officer
c.
Payment of urgent
medical treatment or equipment for an officer
or his family not covered
by Insurance.
d.
The purchase of essential articles
due to staff or burglary
at the officers’ residence.
e.
Meeting the funeral expenses of a family member
f.
For Annual leave
27.2.
It should be noted that, the above Advance will
depend on the nature of the contract for the staff member concerned.
27.3.
The Executive Director
shall grant staff advance strictly in accordance
with approved staff regulations of the Organization and:
a.
No personal advances shall be issued to an employee
where the previous one has not been fully recovered.
b.
Funds made available for advances shall be subject
to a maximum total outstanding, which
has been formally approved by the Executive committee after considering the necessary total funds required
for annual operations.
28.0. INSURANCE
28.1. It’s the responsibility of the Executive
Director to ensure that appropriate insurance policies are
there for the following:
a.
All assets of the Organization whether immovable or movable, are covered against all risks.
b.
Cash in safe and in transit.
c.
All motor vehicles
d. Fidelity guarantee in respect of all employees
who are entrusted with the Organization cash/property.
e.
Workers compensation
29.0. STOCKTAKING
It shall be necessary to carry out physical
verification of stock and fixed assets. Stocktaking team of appropriate staff shall be selected to
carry out verification. It shall be the responsibility of this team to compare
the physical stock with the balance shown in the stock cards and investigate
all the surpluses and deficiencies.
Stocktaking shall take place three times a year. However stocktaking can be
done any time by immediate supervisor of the storekeeper.
30.0. SAFE KEYS:
There shall be two keys for the safe.
One key shall be in possession of the Finance Officer and duplicate key
shall be with the Executive Director. The Officers who hold the safe keys shall
have such keys on their person for safe custody.
31.0. GENERAL PROVISIONS
31.1. Financial Accountability
a.
The Executive Director is the Chief Accounting
Officer of MASO and is answerable to the Board of Trustee.
b.
The Executive Director
delegates financial authority to Project managers/FO through the exercise
of budgetary vote controlling and application and use of these regulations.
c.
Regarding the of extent of authority delegated to
Heads of Departments the Executive Director shall
have the right to withdraw or suspend or limit the exercise of delegated
authority by any officer if it
transpires that the Executive Director is not satisfied with the use by the
officer of the delegated authority.
d. The administration of these regulations is vested in the Executive
Director.
31.2. Building Maintenance
I.
Day to day maintenance of Organization building
shall be the responsibility of the Admin manager.
II.
Maintenance shall include,
but not limited to, the following;
·
Making sure the office is free from hazard
·
Replacement of lights
·
Arranging of repairs
·
Clearing services
·
Electricity usage
·
Other activities that will ensure a safe work environment.
31.3. Conference Room
The Admin manager shall make arrangements for use of
the conference room for meetings. A monthly calendar
of upcoming events shall be maintained by the administrator scheduling
activities, which are booked to take
place in the conference room. The scheduling shall be determined on first-come,
first served basis. If there is a conflict, this should be resolved by the
administrator. A small fee is chargeable for
the use of the conference
room and other MASO properties.
31.4.
Copying/Printing
The photocopying work in the Organization is
centralized. This work is done by one person. Work to be photocopied must be taken to the photocopying room, and clear
instructions such as number of copies, sized, time frame and cost unit to be charged,
should be given to the person authorized to do photocopying work.
After work is completed cost unit controller shall sign the photocopy register
to approve charges against their cost center budgets. Printing will be
done on one printer on a linked system from the entire link computer.
31.5. Travel Arrangements
Travel arrangement shall be handled by the logistics officer.
She/he will handle all travel requests, including
visas. The following
information should be provided in the travel authorization form.
a.
Destination
b.
Travel dates
c.
People travels with
d.
Other pertinent information
e.
Nature of the trip
f.
Contact address and telephone number when on safari
31.7. Equipment use
Equipment shall be used only in the work area
assigned, unless otherwise approved by the Executive Director. If equipment is to be used in a work area other than
that assigned for a period more than three months, the inventory list shall be revised to reflect
such transfer.
31.8. Equipment maintenance
Procedures for all equipment maintenance shall
follow warranty instruction to insure compliance. For items that
are no longer, under warranty, the administrator must be contracted who will
obtain estimates for repair. Upon completion
of maintenance/repair the item shall be returned
to the respective location.
31.9. Contracts
MASO will enter into service contracts with
reputable Organization for the servicing and repairs of its equipment. These services-contracts are
signed by the Executive Director on behalf of MASO. These contracts will be awarded on competitive basis. These organizations will need to show the following:-
a.
Physical address of the business
b.
Valid business license
c.
Company profiles
32.
Unless otherwise agreed with funding agencies/donors this
financial working guide will be applicable to all procurement matters
in all MASO’ Offices.
ENTRY INTO FORCE
33. The
Procurement Manual , were adopted by the Board of Trustees of MASO at the
meeting held in SUMBAWANGA MUNICIPAL,
and approved by the Board member on August, 2018 and becomes effectively from 01st October, 2018
