_____________________________1____________________________________

AKWA IBOM INVESTMENT AND INDUSTRIAL

PROMOTION COUNCIL









ACCOUNTING MANUAL

PLOT 3,UNIT D
EWET HOUSING ESTATE
UYO
PHONE:085-203410,203580
Email,akiipoc@skannet.com.ng DATED MARCH 01,2001


AKWA IBOM INVESTMENT AND
INDUSTRIAL PROMOTION COUNCIL (AKIIPOC)

ACCOUNTING MANUAL

TABLE OF CONTENT

SECTION DESCRIPTION PAGE



I. INTRODUCTION 2


II. ACCOUNTING POLICIES 4

III. ORGANISATION OF ACCOUNT 8

IV. DEPARTMENT/JOB DESCRIPTION 9

V. ACCOUNTING SYSTEM 13

VI. APPENDICES 47
- SPECIMEN OF FORM
- CHART OF ACCOUNT
ORGANOGRAM OF ACCOUNT
DEPARTMENT



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MANUAL OF ACCOUNTING SYSTEM


1. INTROUDUCTION

THE ACCOUNTING MANUAL OF AKIIPOC

This is intended to spell out the organizational structure of the
Account Department and the Accounting system of the council. It
Consist of the rule ,procedure ,chart, convention

FUNCTIONS OF THE ACCOUNT DEPARTMENT

The Accounts Department is responsible for budgeting, recording
Monitoring ,interpretation and dissemination of financial information
Concerning the councils activities. In order to achieve these
objectives, the Department has to ensure:-

(a) That proper books of account and records of account are kept;
(b) That proper custody is kept of those books and records of account;
(c) That the asset are promptly recorded and effectively secured and
protected;
(d) That the liabilities are promptly recorded, reconciled and
discharged;
(e) That monthly financial statement are presented to management,
and the
Council for effective planning and control;
(f) That contribution is made to overall efficiency of the councils
Administration;
(g) That the regulation of the council as the pertain to financial matters
are strictly
Observed.




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AKIIPOC ACCOUNTING MANUAL 2001










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2. ACCOUNTING POLICIES

BASIS OF ACCOUNTING POLICIES

The Account of the Council would be prepared under the historical cost
convention.

2.2 CAPITAL AND REVENUE EXPENDITURE

.1 CAPITAL EXPENDITURE

This is expenditure normally incurred on purchase or acquisition of
property, plant, motor vehicle and other equipment of durable nature the life and use
of which will extend over one accounting period. Alteration to newly acquired
second-hand asset, to make it suitable for the purpose of the business of the council
should be capitalized. Amount capitalized should include all expenses connected with
the acquisition and / or installation of assets including professional fees, and duties
etc. The cost of improvements to motor vehicles, plant and machinery, tools,
Building, etc carried out by the councils or construction of such machinery etc.
Should be ascertained and capitalized. Where any existing assets have been materially
improved and their remaining commercial lives are substantially extended as a result,
then such expenditure should be capitalized and depreciated over the remaining life
period. individual expenditure item which is below N5,000,but of capitalized nature ,
would not be capitalized but expensed.




















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.2
Revenue Expenditure

Revenue expenditure is incurred to maintain the operational capacity of the council
and keep fixed assets in a fully efficient state. This is charged to the income and
expenditure account in the year it is incurred.

2.3 DEPRECIATION OF FIXED ASSETS

Fixed asset will be depreciated on a straight line basis with the view of
writing off the cost of the asset concerned at the expiration of their useful
commercially lives. However, individual assets will not be a nominal value of
N10 should be left in the books until disposed off. Asset will not be
depreciated in the year of acquisition if purchased in the second half of that
year or in the year of disposal. The following rate will be used for
depreciation:

Land & Building 2 % per annum

Plant & Equipment 15% per annum

Computer 25% per annum

Motor vehicles 25% per annum

Furniture & Fitting 15% per annum

Leasehold improvement Over the life of the lease


2.4 REVENUE

Revenue represent grant and subventions from government and
proceeds from investments and trade promotional.













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2.5 STOCK

Stocks are to be stated at the lower cost and net realizable value. Cost include all
expenditure incurred in bringing the stock to current condition and location Net
realizable value is the value to be realized in the normal course of business after
allowing for cost of realization. Cost of stock will be determined on the first in,
first out basis.

2.6 GAINS OR LOSSES ON DISPOSAL OF FIXED ASSETS

Gains or loses on disposal of fixed assets are to be written off to the income and
expenditure account in the year of disposal

2.7 BAD AND DOUBTFUL DEBTS


Debtors will be age-analyzed and all debts, which are over 360 days, will be fully
provided for .in addition, specific debts, which are less than one year but recovery
of, which appear doubtful, will be fully provided for.

2.8 STOCK PROVISION


Any specific stock found damaged, slow moving or obsolete should be
recommend by the chief accountant to the Director General and approved by the
council for either a specific provision or write off.

2.9 ASSETS AND LIABILITY IN FOREIGN CURRENCY

Asset and liabilities in foreign currencies will be converted into naira at the rate of
exchange ruling at the balance sheets date. gain on exchange will not be
transferred to the profit and loss account until realized whilst losses that are debit
balance on Exchange Gain/losses Account should be written off to the profit and
loss account.

2.10 CHANGES IN ACCOUNTING POLICIES

All changes in accounting policies are to be approved in writing
by the council in session.










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ORGANISATION OF ACCOUNTS DEPARTMENT
AND JOB DESCRIPTION


3.1 ORGANISATION OF ACCOUNT DEPARTMENT

1 The overall head of the Account Department is the chief Accountant. He
will be assisted by the sectional heads, Accountants, and assistant
accountant, as the needs arises. there will also be supporting staff of all
grades to assist the sectional heads in
carrying out their day-to-day functions.

2 The Account Department as shown in the organization chart is structured
into two n
Sections:

(a) Project Accounting Unit
(b) Financial Accounting Unit

3 The project Accounting Section is concerned with

- Project ledger
- Cost Control
- Purchasing and creditors ledger
- Stores
- Fixed Assets Register
- Investment Accounting

4 The Financial Accounting Section is concerned with

- Treasury Function
- Investment accounting
- Banking and cash management
- Budgeting / budgeting control
- Payroll Administration
- Banking cash book/Reconciliation
- Staff Advances
- Petty Cash book
- Debtors ledger
- General ledger
- Final Account
- Tax Administration (WHT, VAT, &PAYE,
TCC, NSITF)





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5 The preparation of the Annual Budget should be the responsible of the Director
General.
A budget committee should be formed with the DG as the chairman and the Chief
Accountant as the budget officer. All line Managers should be a member of the
committee. The budget committee will formulate a general programme for the
preparation of the budget and the chief Accountant will be responsible for putting
together the budget. Adequate records supporting the assumption used in the
preparation of the budgets should be maintained. The budget should be approved
in session.

3.2 JOB DESCRIPTION

In the following sub-paragraph, detail will be given on the job content
of the Chief Accountant.

1 THE CHIEF ACCOUNTANT

He should be a chartered Accountant or equivalent with not less than eight (8)
years post qualification experience.

He is responsible for: -
- Planning and Control of all necessary
expenditure to meet approved Councils
objectives; carrying out financial policy
prescribed by the council in session / and the
enabling law.
- Presenting to the council three month to the
end of each financial year, annual budget
including the appropriate short and long-
term cash forecast designed to express the
councils policy and ensure the necessary
control operations.
- Presenting the Audited balance Sheet and
Accounts to the Council and the AKS House
of Assembly within three months of the end
of the relevant financial year.
- Presenting the budget of the council duly
approved by the council-in-session not later
than August 31,to the Governor for approval
for the House of Assembly.
- Ensuring adequate provision for collecting
money due from Government, staff or
organization relating with the council
- Advising management on the capitalization
and capital gearing in respect of expansion
programmes

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- Ensuring that adequate office
accommodation and storage equipment are
provided for comfort of his staff and safe
custody of accounting documents.
- Ensuring that adequate procedure is
followed for the buying of materials,
supplies and equipment required by the
council.
- Ensuring adequate arrangement for the
receiving, storage and issue of all materials,
supplies and equipment.
- Liaising with the councils bankers, the state
treasury Department and financial advisers.
- Making appropriate arrangement with the
AKIIPOCS External Auditors and State
Auditors-General for the audit of the
council.
- Collaborating with the Executive Director
(Management Services)with regards to
salaries,engagement,employment and
working conditions, and similar matters as
regards accounting and clerical staff.
- Maintaining contact on the councils behalf
with government department and other
organization in respect of matters pertinent
to the councils finances.
- Attendance at the council meeting for
financial matter, when called for (or when
invited)
- He will recommend adequate provision for
the training of all staff in his department for
more effective and efficient performance of
the councils activities.
- He will sign all cheques issued in settlement
of the council liabilities.
- He will see to it that excessive fund is
invested in shares and money market
instruments.
- He will recommend to the ED (Management
Services) the write-off of bad debt or other
lost assets after clearance with the DG.
- He will recommend to the ED(Management
Services)the write-off of bad debts or other
lost assets after lost assets after clearance
with the DG
-
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- He will administer his subordinates in
accordance with the councils personnel
policy as communicated to him.
- He is under specific duty to maintain good
relationship with his colleagues in the
management team and to contribute his
knowledge and experience for the overall
management effectiveness.
- He will maintain staff discipline within his
department and in suitable cases recommend
termination or summary dismissal in
accordance with the staff conditions of
service.
- He will ensure that all new entrants to his
department are provided with staff condition
of services.
- He should maintain good public relations in
his contacts with outside persons and
organizations.
- He will perform any other duty as may be
given to him by the ED(Management
Services)from time to time.
- The chief accountant is responsible to the
ED (Management Services).
























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4. ACCOUNTING SYSTEM


4.1 BOOKS AND RECORDS

In order to ensure that proper books and records are maintained to facilitate
the preparation of the Trial Balance, income and Expenditure Account and
balance sheet in compliance with the generally accepted accounting principles
(GAAP) and the enabling act, the following books and records shall be
maintained: -

1 General ledger
2 Bank Cash Book
3 Petty Cash Book
4 Debtors Ledgers
5 Creditors Ledgers
6 Fixed Assets Register
7 Stock/Bin Cards
8 Project Accounts
9 Investment Account
10 Payroll
11 Security Document Registers
12 Cheque Register
13 Returned Cheque
14 Voucher Register
15 Advances Register
16 Repayment Schedule






















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4.2 BANK CASH BOOK

4.2.1 Cash and Bank Receipt Register

1 All monies received whether in cash or by cheque or draft will be
recorded in the cash and bank register after, in the case of cash, a
receipt had been issued
2 The Cash Register will be printed with several analysis columns and
made out in three (3) copies and distributed as follows: -
Original - to Account Department for use in
Writing up of
The Bank cash books for banking of all monies received
and for processing and acknowledgement of receipts in
the case of cheque and drafts.
Duplicate - to Computer Section

Triplicate Book copy

3 The Cash Register Contains the following basic information

a) Date
b) Name of payer
c) Cash receipt number
d) Cheque or draft number
e) Amount (cash)
f) Amount (cheque or drafts)
g) Several columns to be used to analyze the remittance according
to Revenue codes.

4 The Cashier on receiving cash, cheque and drafts will complete
the cash Register for the day, rule off and total, agree the cash received
with the cash column and will at the end of the day hand over the cash
register with the monies to the Chief Accountant or his delegate who
will sign on all the last copies of the cash register testifying receipt.

5 A processing stamp will be embossed on the original and
duplicate of all Payment vouchers and relevant documents and
will be completed and signed by the staff.
.

Specimen of the processing stamp is as follows:-
PAID
Cash R/No Date

Cheque/Draft No.. Date...

Signature Date..





4.3.2 THE CASH BOOK

1 All bank transaction will be recorded in analysis cash book
called the bank cash book (Specimen 4) with sufficient
columns to accommodate the accounting heads represented by
codes that each page of the cash book will require.
2 Amount received as evidence by the receipt book should be
shown in total from the cash and bank receipt register in the
Cash Column (Receipt Side) The Cash column on the
payment side of the cash book will contain records of banking,
per the bank teller. Such banking will then be recorded in the
relevant banks columns in the receipts side of the cash book.
As all amount received should be banked intact, the balance of
the two Cash columns (in the receipt and the payment side of
the cash book)should at all times represent cash received but
not yet banked at the end of the month. For proper cash control,
the Accountant in charge should inspect the cash book on the
first day of the following and ensure that the balance has been
banked.
3 There will be a cashier responsible for the receipt of cash and
cheques, payment of cheques, banking of receipt, writing up the
cash book and reconciling cash book balance with bank
monthly.
4 The cashier will be housed in a room, which will not be easily
accessible to other member of staff. In addition, the cashier will
have fire proof safe in which cash and other valuable document
will be kept.



4.3.3 Receipts

1. Pre-numbered security printed receipt books should be made t
out (Specimen No 1).



The receipt books will be controlled by the chief Accountant.
The cashier who will be issued with one booklet at a time will
sign the register as evidence of receipt of the booklet. Issues to
the cashier should be in exchange for the exhausted receipt
book earlier issued, which should be carefully and serially
preserved for subsequent audit inspection.



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2. The receipts book as said before should be printed in triplicate and distributed as
follows:
Original to the payer
Duplicate to Accounts Department
Triplicate as book show:

3. The Security Documents Register Receipts Book should be ruled to show:

1. Serial Number of Receipt Booklets
2. Date issued
3. To whom issued
4. Signature of Recipient
5. Date exhausted receipt booklet returned
6. Signature of clerk receiving the exhausted receipt booklet.

4. Receipts should be issued for every amount receipt.

5. Spoilt or otherwise cancelled receipt should be marked CANCELLED across the
original and all copies of the receipt all of which should be retained in the books.

6. The receipt side of the cashbook will be written daily with the total from the cash
Register.

7. All cash and cheques received should at the end of each day be recorded on
bank paying-in-slip (bank teller) for banking the following day. As a strict rule,
all cash received should be banked intact daily without utilising any part for
Disbursement.

8. Cheques should only be accepted as a mode of payment from persons or
organisations approved by the DG. Otherwise bank drafts or bankers cheques should
be preferred to ordinary cheques.

AKIIPOC ACCOUNTING MANUAL 2001











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___

9. Where cheques received are returned unpaid by the bank, the original entry in the
cash book should be reversed, returned cheques should be brought to the attention of
the DG and step taken to obtain settlement.

10. A Register of returned cheques should be maintained by the Chief Accountant
appropriately ruled to show when a replacement draft or cash was received and
banked. At any point in time, the balance on the register of returned cheques should
be reconciled to the ledger balance.

4.3.4 PAYMENTS

1. Chequebooks for each bank should be obtained from the bank one at a time.
The chequebook should be kept under locks and keys when not in use.

2. Persons so authorised by the council will sign the councils cheques.

3. All cheque payments should be supported by a cheque payment voucher
(specimen No. 5) indicating what the payment is for. The payment voucher
must be numbered.

4. In addition to the cheque payment voucher, every payment should be
supported by the following documentations:

(a) Remittance Advice (specimen No.6) when paying creditors which will
have the following details:

- Name of payee
- List of invoice/bills etc. together with the amount(s) to be
paid.
- To amount payable both in words and figures.
(b) Original Invoices/Bills, payroll summary etc. to be paid.


(c) Duplicate copy of local purchase order, where applicable.


(d) Original Goods Received Note, where applicable.

5. The documents supporting disbursement (see 4.3.4.6 below) should be
cancelled by stamping it PAID using a PAID date stamp indicating the
date and cheque number on all the vouchers by one the cheque signatories at
the time of signing the cheque,


AKIIPOC ACCOUNTING MANUAL 2001
6. The following documents should accompany cheques to be signed when
cheques are sent the cheques signatories:
(a) Cheque payment voucher
(b) Remittance Advice, where applicable
(c) Invoices/Bills, payroll, purchase order, Goods Received Note and
quotation, where applicable.

These documents should be presented to the chief Accountant who
signs the cheque payment voucher as authorisation for payment after
examining documents for evidence that all relevant internal checks
have been compiled with.

7. On no account should a blank cheque be signed by any of the cheque
signatories.

8. All cheques should be restrictively crossed NOT NEGOTIABLE-
ACCOUNT PAYEE ONLY, except cheques for re-imbursement of petty
cash and payroll cheques for employees paid by cash (if any). Voided cheques
should be cancelled and the cheque left in the chequebook.

9. The payment side of the cashbook will be written up from payment vouchers
quoting both the payment voucher number and the cheque number. The
amount in the respective bank columns, which should correspond with both,
the cheque stub and the cheque payment voucher figures should be extended
to the appropriate column in the analysis column e.g. Creditors, wages and
salaries, rent etc. in the cashbook.

10. Debits in the bank statement not in the payment side of the cash book such as
standing order, bank charges, interest, debit advice etc. should be authorised
by the and signed by the chief Accountant. Payment voucher should be
prepared and signed by the Chief Accountant with appropriate authority before
the transactions are recorded in the cashbook. These should be supported by
third party documents e.g. Debit advice from bank.

11. After recording of payments, the payment vouchers together with the
supporting documentations should be filled away serially in monthly batches.

12. While banking the receipts, care should be exercised to ensure that amounts
received and traditionally credited to the councils account or are so shown in
the bank teller and paid to their respective bank accounts.


4.3.5 BALANCIN AND POSTIN OF CASH BOOK
1. Monthly the cashbook should be totalled and balanced and the totals per
each column posted to the general ledger indicating the folio references
in both the cashbook and the general ledger. The cash book forms part of
the double entry. Re-imbursement of petty cash should not be posted to
the general ledger but to the receipts side of the petty cash book. The
total should only be agreed with the receipt side of the petty cash book.
The individual receipts from debtors (if any) and individual payments to
creditors in the cash book (if any) will be credited and debited
respectively to individual customers and suppliers accounts in the
debtors and creditors ledgers respectively.


2. The Chief Accountant or a responsible staff nominated by him should do
all posting to the general ledger.

3. Bank statements are to be obtained monthly and the balance per the bank
statement reconciled with the cashbook balance by the keeper of the
cashbook. The Chief Accountant who will sign the evidence of the
review will review the bank reconciliation statement should be typed in
copies and signed by both the staff and the chief Accountant and cash
book, a copy of that statement should be filed in the bank statement file,
a copy to the ED (management services) and a copy kept by cashier for
use in the following months reconciliation. Monthly, the Chief
Accountant will check the cashbook with the relevant vouchers for
correctness leaving evidence of the check. The checks should include
ensuring that all cheques and receipts have been accounted for.

4. Balance in the cashbook should be carried forward to the next month.

5. A. Copy each of the monthly bank reconciliation statement should be
given to the DG.

4.3.6. DAILY FUNDS POSITION STATEMENT

1. These should be submitted daily by the chief Accountant (specimen No.
7). The funds position statement will include listing of totals per cash book
in triplicate of all cash collected on a daily basis in respect of:
(a) Grants from the state Government
(b) Investment and trade promotions proceeds
(c) Receipts from Debtors (if any)
(d) Miscellaneous Receipts

2. The total backings should be supported by the bank tellers.

3. The Chief Accountant shall check and sign the funds position statement
and ensure that the balances reflected in the funds position agree with the
running balance of the cashbooks.

4. The funds position statement should be distributed as follows:

- DG
- ED (Management Services)
- Chief accountant
- File copy for the Accountant.

PETTY CASH BOOK

1. An analysis cash book should be maintained in which all petty cash
transaction will be recorded. The petty cash book should be such that
receipt (re-imbursement of impress) and major elements of expenses could
be analysed and monthly totals posted to relevant ledger accounts.

2. The cashier will maintain the petty cash or any staff delegated to do so.

3. The petty cash will be maintained on an imp rest system whereby a fixed
float of N50, 000 will be established not exceeding two weeks normal
anticipated petty cash expenditure. The fixed float will be paid to the
cashier initially, after which subsequent re-imbursements should be the
total cash necessary since the last re-imbursement to restore the float to the
fixed float. At the time of re-imbursements, all voucher supporting
disbursements should be presented to the cheque signatories for checking.
All cash received for petty cash should be from the bank. Any other cash
received whether from sales or from retirement of purchases, touring or
other advances or refunds should be receipted for and recorded in the bank
cashbook, not in the petty cash book.

4. Petty cash expenses will be made on authorised petty cash vouchers
(specimen No. 8), which must be pre-numbered. Each voucher is to be
authorised by the staff as indicated below. All relevant receipts and
documents supporting petty cash expenditure are to be cancelled by
stamping them PAID date stamp and to be attached to the relevant petty
cash vouchers.

5. All petty cash vouchers with the supporting documentations should be
filed in numerical sequence in monthly batches.

6. Daily, a petty cash book will be written from petty cash vouchers and
analysed under appropriate elements of cost.

7. Monthly, the petty cash book should be totalled and balanced. The
Accountant will check the petty cash book against the authorised vouchers
and re-imbursements from the bank cashbook and agree the balance with
cash in hand leaving evidence of the checks carried out. The evidence
should be in the form of a denomination and this should be written in the
petty cash book below the ruling, signed and dated by the Accountant.

8. Monthly, the payment side of the petty cash book should be posted to the
general ledger indicating the folio reference in both the petty cash book
and the General Ledger. The petty cash book forms part of the double
entry system.

9. Authorisation limit approval of petty cash voucher should be set for
categories of staff in accordance with the needs and exigencies of the
business, which presently is as follows: -

Accountant N500 and below
Chief Accountant N501 to N1, 000
ED (Management/Services) N1, 001 to N5000

No expenses higher than N5, 000 should be paid through the petty cash

10. The above authorisation limit can be varied in the light of prevailing
circumstances, but such variation should be approved by the council- in-
session.

4.5 EXPENDITURE APPROVAL LIMIT/BANK SIGNATORY LIMIT

EXPENDITURE LIMITS

TENDERS LEVEL APPROVING
AUTHORITY
AUTHORITY LIMIT
Operational
Expenditure/petty cash
ED (Mgt. Services)/Heads
of Dept
N10, 000 to N50, 000
Departmental Tenders
Committee
DG N50,001 to N500,000
Council Tenders Board Chairman, Tenders Board N500,001 to N2,000,000
Council-in-Session Chairman of Council N2,000,001 to N5,000,000
His Excellency, the
Governor
His Excellency, the
Governor
N5,000,001 to
N20,000,000
State EXCO His Excellency, the
Governor
Over N20,000,000

Open tender system shall be adopted in all cases or contracts exceeding N100,000. All
such contracts must be advertised on the secretariat notice board or newspapers
(where the sum is high/wider participation necessary). The terms for bidding must be
clearly spelt out. Tenders must be submitted in closed envelopes and opened on an
appointed date. Award of contracts must strictly comply with the contract terms and
must be on merit.

A database of approved contractors must be maintained. All such contractors must be
duly registered with the council and appropriate fees paid. Qualification criteria must
be spelt out and reviewed from time to ensure compliance. Contractors who fail to
meet the minimum criteria may be de-listed.

Tenders splitting is not allowed. It is a serious offence for any officer to deliberately
split contracts of works, purchases or services in order to circumvent the provisions of
the financial Regulations. Such breach of the rules shall be subject to disciplinary
action.
Mobilization fee, where necessary and appropriate, shall not exceed 40% of the
contract sum.
The internal Auditor and the council Ledger Counsel shall vet certified true copies of
all contract agreements before award is made. In addition, minutes of Tenders board
meetings and full records of all the Tendering Processes must be kept and made
available for inspection by the Internal Auditor and office of the Auditor General of
the State and Accountant-General of the State, on demand. Such records shall be kept
for a period of five years from the date of completion of the contract.

BANK SIGNATORY

LIMIT SIGNATORY
N50, 000 and below ED (Mgt. Services) & Chief Accountant
N50.001 To N1 million ED (Mgt. Services) & DG
N1,000,001 to N5 million DG and Chairman of Council
Over N5 million Chairman of Council


FINANCE AND GENERAL PURPOSES COMMITTEE

There shall be a finance and General Purpose Committee whose functions shall
include:

Review of accounting policies and procedures for recommendation of change
of accounting Policies to the Council
Review of Council Budget for presentation to Council
Ensuring that the accounts of the Council are audited on a timely basis
Ensuring compliance with the financial Regulations of the Council and
relevant internal controls
Monitoring compliance with the Financial Budget and variance analysis
Ensuring compliance with relevant accounting and statutory standards
Investigations of financial irregularities and reporting to Council for
appropriate sanctions
Ensuring the overall data integrity in the Financial and accounting system
Reviewing expenditure limits and bank signatory limits for recommendation
of changes to the Council.

The membership of the Committee shall comprise:
1. Chairman- a member of the Council with accounting background
2. The DG
3. ED (Mgt. Services) shall serve as the secretary
4. The Chief Accountant
5. Two other members of the council
6. Legal adviser
4.6 PURCHASES- GOODS AND SERVICES

4.7 ORDERING PROCEDURES

1. Credit facilities from local suppliers will be secured to enable cash purchases
to be restricted to an absolute minimum. Whenever possible, purchase should
be made from established suppliers to eliminate over invoicing. Bulk
purchases should be encouraged to enable the council to obtain discount and
enjoy the benefit of economy of bulk purchases. A master file of approved
suppliers or vendors will be maintained and updated regularly to reflect
changes in the following:

2. Purchase Requisition (specimen No. 11) should be made out by the various
department heads to whom purchases requisition book has been issued
indicating the description and quantity of goods or services required. The
purchases requisition should be made out in two copies and renumbered. The
original should be forwarded to the Account Department through the Head of
Department and the duplicate kept by the requisitioned in the book. The
requisition will be prepared after the stores officer has notified the appropriate
head of department that the stock has reached a recorder level or is non
existent.

3. The purchasing officer or any person so mandated will check the physical
stock to confirm that the stock is at reorder level after which he will invite
quotations from at least three suppliers. An order will be placed with the
selected suppliers after considering the price, delivery time and ability to
supply.

4. Official Local Purchase Order (LPO) (specimen No. 9) which should be
security printed should then be completed for approval by the ED
(management Services). The LPO booklets should be controlled by the Chief
Accountant who will record the serial number of the booklets supplied by the
printer in a security Documents Register Local Purchase Order.

5. LPO copies will be distributed as follows:

(a) Original- to the Supplier
(b) Duplicate- to Accounts Department for attaching to invoice when
the latter is being paid.
(c) Triplicate- to Stores
(d) Quadruplicate- Book Copy

6. The Accounts copy will be filed temporarily in numerical order in LPOs
Awaiting invoice File.



]
4.6.2 RECEIPT OF GOODS AND SERVICES

1. All goods received should be examined by the Storekeeper and certified that
they agree for description, quality and quantity with the LPO. He should then
record the receipt of the goods on a renumbered Goods Received Note (GRN)
(specimen No. 10). The Storekeeper should sign the Goods Received Note.

2. The Goods Received Note should be made out in three copies and distributed
as follows: -

(a) Original to Accounts Department for attaching to Invoice
(b) Duplicate to Stores Department
(c) Triplicate Book Copy
3. The Accounts copy of the Goods Received Note (GRN) should be attached to
the
in LPO awaiting Invoices File while the Stores Copy will be used in posting
stock cards.

4.6.3 RECEIPT AND REGISTRATION OF INVOICE

1. All incoming invoices will be passed to the Chief Accountant who will pass
them to the accounts clerk in charge where the invoice is rubber stamped
(specimen below).

Date Received/ Recorded by
LPO number/ checked by
GRN Number/checked by
Arithmetical accuracy checked


By
Approved for posting by
Allocation


2. The accounts clerk will then batch the invoice with the LPO and the GRN. If
they agree, he will insert both the GRN and LPO number in the appropriate
column of the box in 4.6.3.1 and sign as evidence of the check. If any
discrepancies are discovered, the supplier will be notified for remedy before
the invoice is processed further.

3. If at the time the invoice is received the goods have not been received the LPO
will be extracted from LPO Awaiting Invoices File and attached to the invoice
and filed temporarily in invoices Awaiting file. When the GRN is received the
checks in 4.6.3.2. Should be carried out.

4. The invoice and supporting documents will be passed over to a checker for
checking for checking of the Arithmetical accuracy of the invoice, after which
the checker should sign the appropriate column of the invoice. If any
discrepancy is noted the supplier should be notified for rectification before the
invoice is further processed.

5. In respect of materials imported the actual cost of goods should be established
by including all expenses incurred in bringing the stock to its state and
location. These cost will include invoice price, ocean freight, marine insurance
(CIF), duty, clearing and transportation charges and other local charges.

6. The invoice will then be recorded serially in a purchase Day Book by the
Accountant stating invoice number, date, description, Ledger folio and
amount. For important items, it is the total cost per costing sheet, which will
be entered in the purchases day Book. The type of material will be extended in
the daybook to enable monthly totals to be posted to stock ledger.

7. The purchases Day Book should be columnar and entries extended to the
appropriate column of expense head e.g. repairs, stocks- spare parts, raw
materials, etc.

8. The invoice together with the attachment will be filed temporarily in Invoice
Awaiting Payment file till due for payment. The file should be divided
creating sections for all suppliers. There should be alphabetical index showing
where a particular customers invoices could be found.


4.6.4 POSTING OF INVOICES

1. The individual amount should in the total column of the purchases Day Book
will be posted to the credit side of the suppliers account in the creditors
Ledger.

2. At the end of each month, the Accountant will post to the debit of the relevant
stock (raw materials) accounts in the General Ledger the totals of each column
would be posted to the credit of creditors control account in the General
Ledger. The postings should be cross-referenced in both the purchases
daybook and the Ledgers. The stores Ledger Clerk will post the debit side of
the stock ledger from purchases daybook and cashbook.

3. At the end of the month, a Remittance advice as mentioned above would be
prepared by the Accountant for all outstanding bills due for payment. The
Remittance Advice together with all documents mentioned in paragraph
4.3.3.4 should be reviewed by the Accountant and approved the Chief
Accountant before being sent to the Cashier for cheques to be written out.

4. Monthly, the creditors ledger balances should be extracted, totalled and
reconciled with the balance per Creditors; Control Account in the General
Ledger by the Accountant. The Chief Accountant should review the
reconciliation.

5. Generally, the Chief Accountant should review all the temporary files for long
outstanding items e.g.: -

(a) LPO Awaiting Invoices
(b) Invoices Awaiting GRN
(c) Outstanding Invoices

Longstanding items should investigate and cleared.
Evidence should be left for carrying out the check.

4.7 SALARIES AND WAGES

4.7.1 STAFF PERSONAL FILES
1. A personal file should be opened for every permanent staff in which
should be filed all correspondence relating to the staff. Items to be filed
in personal files include: -
(a) Appointment letter duly signed by the Ed (management
services)
(b) Promotion and Salary increment letters
(c) Termination letters
(d) Loan agreement etc
(e) Copies of certificates, testimonials and other personal
particulars.

The files are confidential and should be kept by the personnel department under lock
and key. A copy of the above documents should be sent to the Salaries and Wages
section for filing and use in the preparation of the payroll.

2. All new engagements, termination, salary increments and promotions
should be in writing and the letters for junior staff are to be signed by
the ED (management Services)

Those for senior staff would be signed by the DG.
The Chairman of Council will sign those for the DG and EDs.

4.7.2 PAYROLL

1. The preparation of payroll involves the preparation of the following:
(a) Detailed payroll
(b) Payroll summary
(c) Individual tax deduction cards

Items (a) to (c) above contain the same information and these could be
prepared simultaneously, if the Kalamazoo system is adopted.
2. Each of the departments should have its payroll separating those to be paid by cash
from those to be paid through the bank.

3. Every member of staff will sign the attendance register when he reports for
work or leaves the premises. The attendance register should be under the
control of the head of the security unit, care being taken to avoid employees
signing in or out for their friends. The attendance register will be sent to
salaries and wages section to be used in the preparation of the payroll.

4. The various departmental heads should approve all overtime before they are
worked. Overtime would be recorded on overtime sheet calculating the
number of hours worked. Each time worked should be approved by the
Departmental head who will sign the overtime sheet against the hours worked.

Two copies of overtime sheet would be produced. One copy will be sent to salaries
and wages section for payroll preparation whilst the other will be kept in the
departments. The number of hours worked should tally with the attendance
register.

5. The ED (management Services) should cause to be prepared. Establishment
(staff) list according to the departments showing the following:

(a) Name of employee and employees number
(b) Post
(c) Date employed
(d) Annual salary and other fringe benefits
(e) Date salary was last reviewed
(f) Remarks
This list should be updated every quarter or when necessary.

6. The Departmental Heads with the approval of the personnel Manager should
employ casual labourers. Daily casuals list should be prepared in duplicate and
the Chief Accountant.

7. The payroll clerk should prepare junior staff payroll from the establishment
list, time sheets, Overtime Sheets, etc. the payroll should include all
allowances that is motor vehicle, rent, etc, deductions like PAYE loans
repayment etc. Columns should be created for payroll to be signed by persons
preparing, checking both arithmetical accuracy and against personal file etc,
and approving for payment. The payroll should have a column for the
companys contributions to NSITF and the Councils Provident Fund scheme,
if any.

4.7.3 PAYMENT OF WAGES AND SALARIES

1 Cheque should be prepared for only the net amounts. for employees to be paid by
cash , a cash cheque would be prepared whilst individual crossed cheques would
be issued for those paid through bank. If found to be practicable (depending on the
quality of services by the banks}the following should be adopted for those paid
through the bank.
A list of staff maintaining accounts with the same bank would be prepared with the
following details:

A] Name of staff
B] Account number
C] Net amount payable

The amount would be totalled and a single cheque for the total amount would be
issued in favour of the bank and the bank asked to credit the individual staff
account with amount shown against each name. A copy of the list duly stamped by
the bank should be retained.

2 For those paid by cash, the amount should be cashed by the Accountant under an
armed police guard early in the morning of pay day.

3 The amount would be envelope together with the pay slip and paid out same day.
Salaries and wages shall be paid not latter than the 25
th
of every month, except if it
falls on a weekend. If it falls on a weekend, the pay day shall be the Monday
following. The 25
th
.

4 Each employee should sign the payroll as evidence of receipt of pay after counting
the money and agreeing it with the pay slip in the presence of the person
distributing cash. Also those helping in enveloping cash should sign for the amount
collected.
5 All unclaimed wages should be paid to the cashier who will issue a receipt and
pay it back to the bank within 48 hours after listing then details of the unclaimed
wages according to departments. The payment of unclaimed wages should follow
the normal disbursement procedure from bank.

4.7.4 POSTING OF WAGES AND SALARIES

1. Monthly, the payroll grand summary should be journalised as follows
for posting to the general ledger:
a. Journal one

Debit: -
- Salaries and wages department
- Motor car allowance department
- Rent allowance department
- Overtime department
Credit: salaries and wages clearance account

b. JOURNAL TWO
Debit : Salaries and wages clearance account

Credit: -

- PAYE /NSIT
- Staff Debtors control Account
- Cash book {This will not be posted as already in cash book}

C Councils contribution to both NSITF and the Councils.

2 The salaries and wages including overtime and
allowances should be compared with those of the
previous month and explanation obtained for the
material fluctuations. The basic salary paid in a
particular month should be reconciled with the previous
month. The reconciliation would be presented to the
chief accountant for the approval before payroll cheque
are signed.
3 Senior staff salaries would be prepare by accountant.

4.8 STORES

4.8.1 STORES REQUISITION

1. Every issue from stores should be initiated on a store
/ purchase requisition voucher signed by the person
requisition for the store.
2. The /purchase requisition voucher should be pre-
numbered and made out in 3 copies and distributed
after authorization as follows: -
Original - to the officer
Duplicate - to the user department
Triplicate - as book copy

3 Every departmental head who would require stores
should be issued with stores/purchase Requisition
voucher booklet.
4 Requisition should be examined by the respective stores
heads of department who should authorize the
requisition by signing it in the space provided.
5 The specimen of the stores /purchase requisition
voucher is given in the specimen No.11
6 The requisition should be authorized both by the Head
of user department and by the stores officer before the
original copy is sent to the stores.


4.7.2 STORES ISSUE

1. Every issue from store should be made on a stores
issue voucher (specimen No.12) based on an
authorized stores requisition.
2. Stores issue voucher should be made out in four (4)
copies and distributed as follows:
- original to the user department
- Duplicate to the account department for the posting of the
stores ledger
- Triplicate to the stores file for posting of tally / bin cards
- Quadruplicate to remain as book copy.

3 The duplicate copy should be sent to the accounts department
who will price and code it. The accounts department will
analyse all store issue voucher in a stores issue voucher register
into relevant code and post as follows :
DR: The different Accounting heads in the general
ledger per the codes

CR: Relevant Stores control account in the General
Ledger.

The Stores Issue Voucher register can be any analysis
book with several columns.

4 The Relevant Stores control Account should be further
explained as follows

a) All goods purchased for the store and meant to be taken on
charge even if they are going to issued out in bulk as they
came in should be coded for posting to the debit of the
relevant stores ledger control account.
b) Issues from store for the consumption or operations will be
analysed and treated as follows:

DR: Accounting Heads in the General Ledger per the codes

CR: The relevant stores control Account in the General
Ledger.
5 The stores requisition procedures are meant to create accounts
which will transaction in each of the stores by location or type,
as the council may desire .Difference between the control
account in general ledger and the and the stores ledger to be
mentioned below could reveal either fraudulent use of material
or errors in the posting of store ledger or Control accounts. In
each of these cases Management is give a lead through which
abnormalities could be highlighted and investigated.

4.8.2 STORES LEDGER

1. The central stores maintain a ledger kept not by the store-
keeper or store attendant but by the Accounting Department.
2. The Stores ledger should record the quantity and the value of
store received and issued and balances held.
3. These should be posted

a) For receipts from the duplicate copies of the goods received
Note
b) For issues from the duplicate copy of the stores issue
voucher.

4. The balances in values of individual items in that ledger should
add up to the balance of that ledgers control Account in the
General Ledger
5. The balances in quantity of individual items should equal the
balances in the bin/tally cards and the number of the physical
goods in the store.
6. For the specimen of the stores ledger, see specimen No.13

4.8.3 BIN/TALLY CARDS

1. Every stores item should have a bin /tally card which records in
physical quantities only receipts, issues and balance.

2 The bin/tally cards are posted

a) For receipt from the tri[plicate copies
of the goods received Notes;
b) For issues from the triplicate copies of
the store issue voucher.

3 The balance on this card should represent the physical
quantity in stock

35

payroll should have a column for the Companys contributions to NSITF and the
Councils Provident Fund Scheme, if any.



4.7.3 PAYMENT OF WAGES AND SALARIES

.1 Cheques should be prepared for only the net amounts. For employees to be
paid by cash, a cash cheque would be prepared whilst individual crossed cheques
would be issued for those paid through the Bank. If found to be practicable
(depending on the quality of service by the banks) the following should be adopted for
those paid through the bank. A list of staff maintaining accounts with the same bank
would be prepared with the following details:

a) Name of Staff
b) Account number
c) Net amount payable

The amount would be totalled and a single cheque for the total amount would
be totalled and a single cheque for the total amount would be issued in favour of the
bank accounts with amounts shown against each name. a copy of the list duly stamped
by the bank should be retained.

.2 For those paid by cash, the amount should be cashed by the Accountant under
an armed police guard early in the morning of pay day.

.3 The amount would be enveloped with the pay slip and paid out the same day.
Salaries and wages shall be paid not latter than the 25th of every month, except if it
falls on a weekend. If it falls on a weekend, the pay day shall be the Monday
following the 25th.













36

.4 Each employee should sign the payroll as evidence of receipt of pay after
counting the money and agreeing it with the pay slip in the presence of the person
distributing cash. Also those helping in enveloping cash should sign for amounts
collected.

.5 All unclaimed wages should be paid to the cashier who will issue a receipt and
pay it back to the bank within 48 hours after listing the details of the unclaimed wages
according to departments. The payments of unclaimed wages should follow the
normal disbursement procedures form bank account.

4.7.4 POSTING OF WAGES AND SALARIES
.1 Monthly, the payroll Grand Summary should be journalized as follows for
posting to General Ledger:

a) Journal One

Debit: -
Salaries and wages Department
Motor Car Allowance Department
Rent Allowance Department
Overtime Department

Credit: salaries and wages Clearance account

b) Journal Two

Debit: Salaries and wages Clearance Account

Credit: -

PAYE/NSITF
Staff Debtors Control Account











Cash book (This will not be posted as already in cash book)

c) Councils contribution to both NSITF and the Councils Provident Fund if any
will be debited to Expenses and credited to staff Provident Fund Account.

.2 The salaries and wages including overtime and allowances should be
compared with those of the previous month and explanation obtained for material
fluctuations. The basic salary paid in a particular month should be reconciled with the
previous month. The reconciliation would be presented to the Chief accountant for
approval before payroll cheques are signed.

.3 Senior Staff salaries will be prepared by the Accountant.

4.8 STORES

4.8.1 STORES REQUISTION

.1 Every issue from stores should be initiated on a Stores/Purchase Requisition
voucher signed by the person requisitioning for the store.

.2 The Stores/Purchase Requisition voucher should be pre-numbered and made
out in 3 copies and distributed after authorization as follows: -

Original - to the stores Officer
Duplicate - to the user department
Triplicate - as Book copy

.3 Every departmental head who would require stores should be issued with
Stores/Purchase Requisition Voucher Booklet.

.4 Requisitions should be examined by the respective heads of department who
should authorize the requisition by signing it in the space provided.













38

.5 The specimen of the Stores/Purchase Requisition is given in specimen No. 11

.6 The requisition should be authorized both by the Head of user department and
by the Stores Officer before the original copy is sent to the stores.

4.8.2 STORES ISSUE

.1 Every issue from store should be made on a stores Issue Voucher (specimen
No. 12) based on an authorized Stores Requisition.

.2 Stores Issue Voucher should be made out in four (4) copies and distributed as
follows:

Original to the user department

- Duplicate to the Accounts Department for the posting of the stores Ledger

Triplicate to stores file for posting of tally/bin cards

Quadruplicate to remain as book copy

.3 The duplicate copy should be sent to the accounts department who will price
and code it. The accounts department will analyse all stores Issue Vouchers in a stores
Issue Voucher Register into relevant code and post as follows:

DR: The different Accounting heads in the General Ledger per the Codes.

CR: Relevant Stores Control Accounts in the General Ledger.

The Stores Issue Voucher Register can be any analysis book with several
columns.









39

.4 The Relevant Stores Control Account should be further explained as follows:

(a) All goods purchased for the store and meant to be taken on charge even if they
are going to be issued out in bulk as they came in should be coded for posting to the
debit of the relevant Stores Ledger Control Account.

(b) Issues from store for consumption or operations will be analysed and treated
as follows:

DR: Accounting Heads in General Ledger per the codes

CR: The relevant Stores Control Account in the General Ledger.

.5 The stores requisitioning procedures are meant to create accounts which will
control transactions in each of the stores by location or type, as the Council may
desire. Differences between the Control Account in General Ledger and the Stores
Ledger to be mentioned below could reveal either fraudulent use of material or errors
in the posting of Stores Ledger or Control Accounts. In each of these cases
Management is given a lead through which abnormalities could be highlighted and
investigated.

4.8.3 STORES LEDGER

.1 The Central stores maintains a Stores Ledger kept not by the Store-keeper or
Store attendants but by the Accounting Department.

.2 The stores Ledger should record the quantity and value of stores
received and issued and the balances held.

.3 These should be posted.













40

(a) for receipts from the duplicate copies of the Goods Received
Note

(b) for issues from the duplicate copy of the stores Issue Voucher.

.4 The balances in value of individual items in that ledger should add up to the
balance of that Ledgers Control Account in the General Ledger.

.5 The balances in quantity of individual items should equal the balances in the
bin/tally cards and the number of the physical goods in the store.

.6 For the specimen of the store Ledger, see specimen No. 13




4.8.4 BIN/TALLY CARDS

.1 Every store item should have a bin/tally card which records in physical
quantities only receipts, issues and balance.

.2 The Bin/tally Cards are posted

(a) For receipts from the triplicate copies of the Goods Received Notes.

(b) For issues from the triplicate copies of the store Issue Voucher




41

4.8.5 PERPETUAL STOCK INVENTORY

.1 Every month, the Store-Keeper and stores Ledger clerk should balance up
their respective books and extract balances.

.2 The Stores-Keeper should compare the balances in the bin cards with physical
stock noting the differences, if any.

.3 The Stores Ledger clerk will compare his quantities with the bin card balances
as extracted and the total values with the control account balances in the General
Ledger.

.4 The Chief Accountant must ensure that Stores Ledger balances and bin card
balances extracted every month are sent to him for comparison and reconciliation.
Any differences should be communicated to the store-keepers concerned who should
be asked to locate the differences.

.5 Where complete monthly inventory is not possible, a batch of items should be
selected each month for counting and reconciliation with the bin card and stores
ledger balances.

.6 The selection should be such that the entire stock items are covered once six
months or twice a year.

.7 The monthly extraction of stores Ledger balances should be carried out in all
stores.

4.9 FIXED ASSETS

.1 A fixed Assets Register should be maintained in which would be recorded the
details of individuals assets. Preferably a card system register should be maintained.
The Fixed Assets Register will contain the following details for each asset:

a) Asset Description
b) Identification number which should reveal location and classification.
c) Supplier






_____________________ 42 ________________________________

(d) Invoice Number/Date/Cheque payment Voucher Number
(e) Date put to use
(f) Cost (original) and additional cost/valuation
(g) Depreciation
(h) Annual Depreciation
(i) Net Book Value
(j) Date disposed of and sale proceed

2.The Fixed Assets Register shall be written up form photocopies of
invoices from suppliers. These would be made up of individual
purchases in the purchases Day Book, which are extended to the fixed
Assets column and/or those individual items in the cashbook payment
side, which have been extended to the fixed Assets column.

3. Annually, the Accounts Department will carry out a physical check of
fixed assets as shown by the register to ensure that the assets exist and
also to review their condition. The register will be reviewed to ensure
that it is properly kept.


4. The cost, the accumulated depreciation and the net book value of the
individual fixed assets will be listed after the physical examination,
totalled and compared with the General Ledger figures.

5. The assets should be properly grouped into Motor Vehicles, Land and
Buildings, Furniture and Fixtures, plant and Equipment, and
computers, etc. the register for each group should be kept separately.

6. The acquisition and disposal of fixed assets should always be approved
by the Council-in-session. The Council when approving the Councils
Budget, which forms part of the annual budget, will normally approve
the authorisation. A capital Expenditure Authorisation/Disposal form
should be introduced which should contain the following information:

(a) Capital Expenditure Authorisation/Disposal Number
(b) Description of asset
(c) Value of asset
(d) Department
(e) Reason for the transaction
(f) Name and signature of persons approving

7. The depreciation charged for the month will be listed monthly from the
registers and the total journalised for posting. Profit and loss Account
will be debited and accumulated depreciation account credited.
4.10 STAFF ADVANCES AND DEBTORS LEDGER

2. Proper control should be exercised in the recording of advances made
to staff such advances include:
(a) Vehicles Loans
(b) Salary and other advances
(c) Touring advances
(d) Purchases advances
(e) Staff housing loans

3. On the approval of any of the above advances form (specimen No. 14)
should be made out in three copies and distributed as follows:
- Original to the staff
- Duplicate to the Chief Accountant for the payroll section
- Triplicate to be filed in the staff file.

4. On receipt of their copy the accounts department should make a record
for the wages clerk of the deductions that are to the made from the
payroll.

5. Control Accounts should be maintained in the General Ledger.

6. Posting to both the personal account and the control accounts should
be as follows: -

(a) On the disbursement of advance
(ii) Dr. The relevant advances Control account in the general Ledger
(iii) Dr. the personal account of the staff in the advance Ledger

(b) On the deduction of the advances from monthly payroll; a
summary of all deductions relating to each category of
advances should be prepared and journal is raised with that
summary as a supporting document: -

(ii) Crediting the relevant advances control account in the General
Ledger.

(iii) Crediting the personnel account of the staff in the Advances
Ledger.

(iv) Debiting salaries Control Account in the General Ledger.

6. In the case of Touring and purchases advances, a complete deduction
form the staff salary should be effected in the month following the one in
which the advances should be retired.

7. At the end of every month, a list of outstanding advances in the personal
accounts should compile and the total compared with the control account
in the General Ledger.

4.11 JOURNAL

1. The journal is required for the purpose of making entries in the General and
other Ledgers in forms other than from the books of prime entry or for
corrections and adjustments in respect of entries made in the Ledgers.

2. All journal vouchers raised must be authorised by the Chief Accountant before
they are posted to the ledger. Where the adjustment affects subsidiary ledgers
e.g. debtors, creditor, staff debtors and stores ledgers, two copies of the journal
should be made one copy being sent to the relevant Department for their use in
those ledgers.

3. Vouchers supporting the journal should preferably be attached to the journal.

4. We recommend the loose-leaf journal with vouchers attached to it and this
should be serially numbered each time a journal is raised.

5. The journal should have three columns one column being used to cater for
postings to the Control Account where applicable.

4.12 GENERAL LEDGER

1. The General Ledger should be maintained to which are posted all transactions
from the books already mentioned above monthly. The ledger accounts will be
in accordance with Accounting codes recommended or created from time to
time.

2. At the end of each month the general ledger must be balanced up and a trial
balance extracted.

3. The trial balance should balance. If it does not balance, this means, inter alia,
that the postings are not correct. Posting for the month must be re-checked and
corrected so that the trial balance may balance.

4. The chief Accountant will ensure that all control accounts agree with
subsidiary ledgers debtors, creditors, staff debtors and stock ledgers.
Evidence of the agreement should be left.

5. Monthly Management Accounts should be prepared in detail comparing the
figures in the budget for the year and for the same period in the previous year.
Written explanations should be given for major fluctuations or lack of
fluctuation where a fluctuation was expected.

6. The monthly account should be distributed to all heads of departments. These
should be discussed at periodic Management meeting and action taken to
remedy the situation where the results are not according to plan.


4.13 ACCOUNTING CODES

The accounting codes listed in Appendix II are for use in classifying all assets and
liabilities whether of capital or revenue nature. Other items, not listed, but which
occur in the normal course of business should be given a code in the relevant
section. The coding system should be reviewed from time to time to accommodate
new codes. Any addition or alteration of the existing codes must be approved by
the Council-in-session.

5.1 APPROVAL

THIS MANUAL WAS APPROVED BY COUNCIL-IN-SESSION ON THE 1
ST

OF MARCH, 2001 AND CAME IN FORCE IMMEDIATELY.

SIGNED BY____________________________
CHAIRMAN OF COUNCIL


APPENDIX I: SPECIMEN OF FORMS

SPECIMEN NO. PARTICULARS OF FORMS PARAGRAPH

1. Cash Receipt 4.2.3
2. Cash and Bank Receipt Register 4.3.1.2
3. Bank Cash Book 4.3.2.1
4. Cheque Payment Voucher 4.3.4.3
5. Remittance Advice 4.3.4.4
6. Daily funds position 4.3.6.1
7. Petty Cash Voucher 4.4.4.
8. Local Purchase Order 4.5.1.4
9. Goods Received Note 4.5.2.1
10. Stores/Purchase Requisition Voucher 4.8.15
11. Stores Issue Voucher 4.8.2.1
12. Stores Ledger 4.8.3.6
13. Staff Advances 4.10.2







________________________ 48 ___________________________________


Specimen No. I
Date:---------------

CASH RECEIPT 0001

Received with thanks from-----------------------------------------------------------------------
----



The sum of ------------------------------------------------------------- Naira---------------------
----

----------------------------------------------------------------------------- Kobo Being ----------
-----





# : k


Code:-------------------




-------------------------------
----
Cashers Signature
















Specimen No. 4

CHEQUE PAYMENT VOUCHER

ATION :------------------------------------------ PV. No:----------------

PAYE:---------------------------------------------

Cheque No:--------------------------------------- Date:--------------------





DETAILS AMOUNT
N K



Amount in words: ----------------------------------------------------------------
-------------------------------------------------- Naira---------- Kobo


------------------------------------------- Checked by: ----------------
----

-------------------------------------- Posted by: ------------------
---

Approved by:

Chief Accountant: -----------------------------------------------

Signature: --------------------------------------------------------













Specimen No. 5

REMITTANCE ADVICE



TO: ----------------------------------------------- DATE: -------------
-






Please find enclosed our cheque No. -----------------------------------------------------------
----

For ----------------------------------------in respect of the items listed below:

Kindly acknowledge receipt.



Date Invoice or Debit Note
No.
Details Amount













# K










Specimen No. 6


Daily Funds Positions

STATIONS: CALABAR/LAGOS

DATE: ----------------------------

FROM: ACCOUNTANT


TO: Chief Accountant


PETTY CASH Bank------------------- Bank---------------------

# # # #


Opening Balance

Add: Banking/Receipt


Deduct: Payments


Closing Balance



ACCOUNTANT: ---------------------------------------- CASHIER

CC:






Specimen No. 7
PETTY CASH VOUCHER

------------------------------------- No. ---------------






Specimen No.8

LOCAL PURCHASE ORDER
This with the suppliers invoice No.00001
Should be attached to the relevant payment Original
Pay:-------------------------------------------------
The sum of ------------------------------Naira
-----------------------------------------------Kobo

DETAILS


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ALLOCATION--------------------------------------------------------------------
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N Amo
unt
K

Checked by
Approved by / Received by
Date


To:..
...
..
Please supply the undelisted articles for the of

ITEM No. Quantity DESCRIPTION UNIT
PRICE
AMOUNT
N

K




CHIEF ACCOUNTANT STORE KEEPER
..
C.R.N NO.AND DATE
















SPECIMEN NO.9

GOODS RECEIVED NOTE

No.00001

DATE:.

STATION:

Supplier :..

Item
No.
Quantity
Figs
Quantity
Words

Part
No.
Description
on
Unit
price
Amount





Invoice No:
Date:

I certify that the above mentioned stores have been taken on charge
..
Store-Keeper










Specimen No.10

STORES / PURCHASE REQUISITION VOUCHER
No.0001

STATION OR DEPARTMENT : DATE:.

ITEM QUANTITY DESCRIPTION



..
..
Signature of Requisition Signature of Departmental Head


.
Signature of Stores Officer
Date:..













Specimen No.11

STORES ISSUE VOUCHER
No.00001
Issued to.. .. 19..

Item
No.
Quantity
Figs
Quantity
Words
Part
No.
Description Code Unit
Price
Amount



..
Store-Keeper
I certify that I have received the above stores


.
Signature of Receiver















Specimen No.12

STORES LEDGER
Article.. Part
No...

Unit Folio
No.

Date G.R.N S.I.V Other
Details
RECEIPT ISSUE


Quantity



Amount
BALANCE


Quantity



Amount


Quantity Amount























Specimen No.
13


STAFF ADVANCES


Nature of
Advance

To Whom
Granted....

Amount Approved and
Paid.

Programme of Refund
.


..


..


.

Borrowers Signature


Authorised by


Designation
.

Date





















AKWA IBOM INVESTMENT AND INDUTRIAL PROMOTIONAL
COUNCIL
CHART OF ACCOUNT [Detail]

ACCOUNT# ACCOUN T TYPE NORMAL
SIGN
HEADE
R/
DETAI
L
LEVEL Chkg


1-0000

Asset Asset Dept Header
1
N
1-1000

Cash Accounts Asset Dept Header
2
N
1-1100

Standard Trust bank limited Asset Dept Detail
3
Y
1-1110

Co-operative dev, bank Asset Dept Detail
3
Y
1-1120

Union bank plc Asset Dept Detail
3
Y
1-1130

Savannah bank plc Asset Dept Detail
3
Y
1-1150

Fixed Deposit union bank Asset Dept Detail
3
Y
1-1200

Petty Cash Asset Dept Detail
3
Y
1-2000

Inventory Asset Dept Detail
2
N
1-3000

Accounts receivable Asset Dept Detail
2
N
1-4000

Prepayment Asset Dept Detail
2
N
1-4500

Investment Asset Dept Detail
2
N
1-5000

Plant and equipment Asset Dept Header
2
N
1-5100

Plant & equip. original cost Asset Dept Detail
3
N
1-5200

Plant & equip. Depreciation Asset Dept Detail
3
N
1-6000

Vehicles Asset Dept Header
2
N
1-6100

Vehicles. original cost Asset Dept Detail
3
N
1-6200

Vehicles. depreciation Asset Dept Detail
3
N
1-7000

Lands & building Asset Dept Header
2
N
1-7100

Lands & building.original cost Asset Dept Detail
3
N
1-7200

Lands&building .Depreciation Asset Dept Detail
3
N
1-8000

Computers Asset Dept Header
2
N
1-8100

Computers. original cost Asset Dept Detail
3
N
1-8200

Computers Depreciation Asset Dept Detail
3
N
1-9000

Furniture & fixtures Asset Dept Header
2
N
1-9100

Furnitures&fixtures.original cost Asset Dept Detail
3
N
1-9200

Furniture & fixt. Depreciation Asset Dept Detail
3
N
1-9500

Other Assets Asset Dept Detail
2
N





2-0000

Liabilities Liability Credit header
1
N
2-2000

Bank loans Liability Credit Detail
2
N
2-3000

Accounts payable Liability Credit Detail
2
N
2-3500

Deposit payable Liability Credit Detail
2
N
2-4000

PAYE payable Liability Credit Header
2
N
2-5000

NSIT payable Liability Credit Detail
3
N
2-6000

Withholding Tax payable Liability Credit Detail
3
N
3-0000

Equity Equity Credit Header
1
N
3-1000

Accumulated fund B/F Equity Credit Detail
2
N
N

3-2000

Current year earning Equity Credit Detail
2
N
3-9000

Accumulated fund C/F Equity Credit Detail
2
N





4-0000

Income Income Credit Header
1
N
4-1000

Government grant Income Credit Header
2
N
4-1100

Subvention from government Income Credit Detail
3
N
4-1200

Special impress Income Credit Detail
3
N
4-2000

Processing fees Income Credit Detail
3
N
4-3000

Registration fees Income Credit Detail
3
N
4-4000

Interest income Income Credit Detail
3
N
4-5000

Dividend income Income Credit Detail
3
N
4-6000

Other income Income Credit Detail
3
N





6-0000

Expenses Expenses Dept Header
1
N

6-1200

Personnel cost Expenses Dept Detail
2
N

6-1300

Local transport & travelling Expenses Dept Detail
2
N

6-1500

Newspapers & periodicals Expenses Dept Detail
2
N

6-1700

Printing, Stationery & photocopy Expenses Dept Detail
2
N

6-1800

Allowances to council members Expenses Dept Detail
2
N

6-1900

Sub-committee allowances Expenses Dept Detail
2
N

6-1920

Servicing of council meeting Expenses Dept Detail
2
N

6-2000

Legal & professional services Expenses Dept Detail
2
N

6-2100

Offices expenses Expenses Dept Detail
2
N

6-2300

Lease expenses Expenses Dept Detail
2
N

6-2310

Motor vehicle maintenance Expenses Dept Detail
2
N

6-2320

Advertisement & publicity Expenses Dept Detail
3
N

6-2500

Computers expenses Expenses Dept Detail
2
N

6-2600

Courier dispatches Expenses Dept Detail
2
N

6-2700

Security Expenses Dept Detail
2
N

6-2720

Meals & entertainment Expenses Dept Detail
2
N

6-2800

Utilities Expenses Dept Detail
2
N

6-2900

Insurance Expenses Dept Detail
2
N

6-3000

Public relations Expenses Dept Detail
2
N

6-3100

Workshop and seminars Expenses Dept Detail
2
N

6-3200

Staff training Expenses Dept Detail
2
N

6-3300

Directors fees Expenses Dept Detail
2
N

6-3400

Trade promotions Expenses Dept Detail
2
N

6-3500

International travel Expenses Dept Detail
2
N

6-3600

Bank charge Expenses Dept Detail
2
N

6-3700

Depreciation Expenses Dept Detail
2
N

6-3800

Telephone .Email expenses Expenses Dept Detail
2
N

6-3900

Motor vehicle running cost Expenses Dept Detail
2
N

6-4000

General maintenance & Repairs Expenses Dept Detail
2
N





















































CHIEF
ACCOUNTANT
PROJECT
ACCOUNTING
SECTION
FINANCIAL
ACCOUNTING
SECTION

STORES

CASHIER

PURCHASING

PAYROLL
TREASURY &
CASH MGT.
BUDGET