WPF Finance department developed the following finance and admin control guidelines.

Procurement

1. Purchase requisition

Any purchase above Rs.1,000 needs purchase requisition submitted by relevant person to Admin Assistant. After verification of need assessment requisition will be forwarded to Administrator for his/her approval.

2. Calling Quotations

Quotations will be called for any item above Rs.5,000. A minimum of 3 Quotations will be required for items having value Rs.5,000 and above.

3. Comparative Statement

Comparative Statement (CS) will be prepared for items for which quotations were called. CS will be duly prepared by Administrator and submitted to Finance Manger for review and Approval by WPF Rep. The lowest bidder will be selected however justification for selection of vendor would be stated if other than lowest bidder is selected.

4. Purchase/Service Order (PO/SO)

Purchase/service order will be required for items requiring quotation. The PO/SO needs to be approved by CR for items valuing Rs. 5,000 and above.
Refer annexure B for PO/SO format.

5. Goods Received Note and Inspection Report

 A Goods Received Note (GRN) or Services Completion Report (SCR) will be generated on receipt of goods or services.

Refer annexure C for PO/SO format.

The person raising the purchase order will verify receipt of goods or performance of services.

6. Payment in Advance

Payment in advance will only be made under extraordinary circumstances and with the approval of WPF Country Representative.

7. Finalising Payment for Goods and Services

Payment will be made once the invoice is verified by Administrator. Payment will be made through crossed cheque of invoices amounting to Rs. 7,000 and above.

A copy of approved purchase requisition and GRN/SCR must be attached with the invoice.

8. Receipt Acknowledgement

A receipt will be obtained upon payment of cheque or cash when its is handed over to the vendor. A copy of cheque, Invoice, receipt and GRN/SCR will be kept together.

Once payment is made the supporting invoice will be stamped as “PAID”  to eliminate the risk of duplicate payment.

9. Asset register

Capital Items of USD 1,500/- and above will be included in WPF’s asset register.

10. Inventory register

Items of value less than USD 1,500 but of life more than 1 year shall be included in WPF’s Inventory register

Expenses

Withholding tax is deducted on all payments to contractors and suppliers of goods and services (such as vehicle repair, purchase of spare parts, stationery etc) as required under the related government laws applicable to the said tax year unless a valid tax exemption certificate is furnished by the payee.

Services/Consultancies of Rs 10,000 and above in 1 Financial Year are subject to 5% Withholding Tax

Supplies/Purchases of Rs 25,000 and above in 1 Financial Year are subject to 3.5% Withholding Tax.

Therefore, it should be considered while drafting Purchase Order/ Consultancy agreement.

• Payroll

WPF Policy Manual is shared with employees at the time of joining the organization and revised policies and procedures are conveyed to employees at the time of change.

Salary Tax shall be deposited in the Government’s treasury. Staff will be provided with tax returns.

• Communication Expense

Reimbursement of private/mobile phone calls for official business will be considered on a case by case basis.
Communication expenses for official calls will be reimbursed on the basis of presentation of original documents identifying calls marked as “official” on telephone bills
Staff should keep record of all private Long Distance calls made from official telephones and should inform Finance Office.

• Travel Policy

The travel request form (DSA) should be sent to the Line Manager for approval and copy to the Country Representative for information. The Line Managers/Country Representative will approve/disapprove the request and will copy to Finance Manager. The travel request form (DSA) should be submitted in Finance Office 3 days prior to travel and duly approved by CR.
DSA is paid for night stays. Last day’s actual food expenses are reimbursable.

Refer annexure E for format of travel authorization form. The expenses incidental to traveling and reimbursable are as follows:

• Tolls & Parking Fees

Tolls and reasonable parking charges will be reimbursed. 

• Telephone

Telephone calls and faxes, specifically, those necessary to obtain transportation and hotel reservations, or to communicate with the office or one’s family to indicate safe arrival is reimbursable.

• Advance for Travel

Advances are only issued 2 working days prior to the travel.

On adjustment of advance and expenses will be verified by the employee submitting reimbursement or adjustment voucher that needs approval of CR

Advances will not be issued to an employee who has not fully accounted for an earlier advance except when this individual must leave for another trip within the five working days following return from the earlier travel.

The maximum amount of a travel advance paid in cash to Transport Incharge for vehicle related expenses when out of the office are as follows:

0-200 km                        Rs. 3,000
200-500 km                    Rs. 7,000
500 km & Above            Rs. 5,000

An additional amount of Rs. 1,500 will be given per day according to the length of stay in a particular zone.

The maximum amount of a travel advance paid in cash to Programme Staff for office related expenses will be determined according to Rs. 500 per day or as per cash forecast requested for expenses related to the Programme in the field area.

• Transportation

The request for car use has to be submitted to the Administrator 24 hours prior to vehicle usage.

In event of private use of official car Rs.4/km will be charged to the user.

• Overtime

Overtime is paid in cash to Grade 1 staff. Overtime will be paid at the end of the month given that the overtime is reviewed by Administrator and approved by CR prior to accruing the overtime.

 

Petty Cash

Any single payment in excess of Rs 7,000 is made through crossed cheque to comply with the statutory requirements.