A finance manual offers crucial

suggestions for successfully

managing finances. The
fundamental ideas of setting a
budget, making investments,
and saving money are described.
Individuals can take charge of
their financial circumstances
and make wise financial
decisions by following the
manual's advice.

Youth Impact
Development
Association
Finance Manaual

Tihitina
Addi Ababa, Septemebr
2023

TABLE OF CONTENT
1. INTRODUCTION
..........................................................................................................................................
4
2. AUTHORITY OF THE BOARD, THE DIRECTOR AND THE FINANCE AND
ADMIN OFFICER
..........................................................................................................................................
6
3. FINANCIAL PHILOSOPHY
..........................................................................................................................................
8
4. FINANCE OFFICE
..........................................................................................................................................
10
4.1 Organizational Structure
....................................................................................................................................
10
4.2 Finance Office Responsibilities
....................................................................................................................................
11
5. CHART OF ACCOUNTS
..........................................................................................................................................
13
6. ASSETS
..........................................................................................................................................
18
6.1 Current Assets
....................................................................................................................................
18
6.2 Fixed Assets
....................................................................................................................................
21
7. LIABILITIES
..........................................................................................................................................
24
8. EQUITY
..........................................................................................................................................
25
9. REVENUE
..........................................................................................................................................
26

1
 9.1 Cash Receiving Procedure
....................................................................................................................................
26
9.2 Check Receiving Procedure
....................................................................................................................................
27
10. EXPENSE
..........................................................................................................................................
29
11. PURCHASES
..........................................................................................................................................
30
11.1 Purchase Procedure
..........................................................................................................................................
30
11.2 Delivering and Storing of Goods
..........................................................................................................................................
31
12. PAYMENTS
..........................................................................................................................................
32
12.1 Petty Cash Payments
32
12.2 Check Payments
34
13. PAYROLL
..........................................................................................................................................
36
14. ACCOUNTING SYSTEM
..........................................................................................................................................
38
14.1 Policy
38
14.2 Procedure
38
15. CLOSING PROCESS & FINANCIAL REPORTS/STATEMENTS
..........................................................................................................................................
40
15.1 Pre-closing Accounting
40

2
 15.2 Pre-closing Trial Balance
40
15.3 Preparation of Reports
40
16. AUDIT
..........................................................................................................................................
42
17. FINANCIAL PLANNING
..........................................................................................................................................
44
17.1 Short-term and Lont-term Planning
44
17.2 Budget
45
18. DOCUMENT HANDLING
..........................................................................................................................................
47
19. ADMINISTRATIVE MATTERS RELATED TO FINANCE
..........................................................................................................................................
48
20. FORMATS
..........................................................................................................................................
50

3
 1. INTRODUCTION

1.1 Background

Youth Impact Development Association (YIDA) is a national resident child and youth-
centered community development organization established in June 2004 with the general
aim of protecting orphaned and vulnerable children from physical, economic and
intellectual poverty. Since its establishment, the organization has accomplished varies
activities which helped a number of orphan, vulnerable and street children to become
productive citizens and fully integrated in the community to live a decent life. The
organization has good track record and success stories in partnership with grassroots
communities, government and other stakeholders in implementing effective community
development projects.

YIDA is a volunteer-based organization established by envisioned individuals motivated

to contribute to the national effort of building better futures to children to whom the
future belongs. In its earlier periods of operation, the organization targeted orphans and
street children and began providing holistic supports which enabled a number of children
pursue their dream and become valuable individuals not only to themselves, but also to
their community as well as their country by engaging in different production areas.
Encouraged with its achievements and continual supports from different parties, in
addition to its projects targeted orphan and street children, the organization expanded its
intervention to address the untapped needs of children form lower economic classes. The
projects of the organization are child-focused aimed primarily at rehabilitating street
children as well as enabling children to pursue their education and minimize their
vulnerability for life on streets.

YIDA has the necessary rules and regulations for a smooth and orderly functioning of the
personnel administration. This Personnel Manual is prepared for the staff to clarify their
rights and responsibilities while working at the YIDA. The Personnel Manual contains
policies on employment procedures, salary administration, training, performance
evaluation, working hours, discipline, termination, holidays, benefits, and the like.
Workers are expected to know both their rights as well as their obligations. Both the
internal bylaw of the organization and the national proclamation 42/85 is used to
formulate the policy.

1.2 Vision, Mission and Purpose Statements

1.2.1 Vision

The project envisioned setting orphaned and vulnerable children free from physical,
economic, and intellectual poverty, reach their highest and fullest potential, become

4
productive citizens of their country and enjoy life of prosperity and dignity.

1.2.2 Mission

To this effect, the project will provide a comprehensive care and support services to the
orphan and vulnerable children; facilitate various types of capacity building trainings to
parents and caregivers; mobilize and capacitate community-based organizations and
communities to contribute to orphan and vulnerable children care and support efforts.

1.3 Purpose of the finance manual

Establishing sound financial system will help YIDA carry out its purpose and keep its
operation running effectively and efficiently. It assures whether or not YIDA has
financial resources to continue functioning effectively. It also enables to determine
whether or not YIDA serves as many people as possible with its resources for the lowest
possible cost. Finally, it evaluates whether or not YIDA is doing a responsible job of
managing its resources.

The Finance Manual has been designed to communicate policy, definitions, procedures
and formats to create financial system, to assist financial personnel and to establish sound
internal control. This Finance Manual is intended to be a dynamic tool which can be
changed whenever change is necessitated. Thus, it will be updated, corrected, added to
and deleted from as the business develops and a better system is required.

This Manual describes and defines the chart of accounts, the internal control and
recording procedures for all basic accounting transactions and explains how such
procedures should be adopted to the requirements of the YIDA's activities. Copies of the
Finance Manual are distributed to the following: the Director, the Deputy Director,
Finance Head and the Board of Trustees.

2. AUTHORITY OF THE BOARD, THE DIRECTOR AND THE FINANCE

AND ADMIN HEAD

Major financial responsibilities of the Director and the Finance and Admin officer are
stated below:

2.1 The Authority of Boards:

1. Acquisition and disposal of immovable property of the YIDA.

2. Dissolution and liquidation of YIDA in the event it is incapable of functioning.
3. Establishment of a debt ceiling to limit deficit spending.

5
 4. Approving the Director’s recommendation for the annual budget, monitor
financial reports, and take actions as necessary to ensure that the YIDA remains
solvent.
5. Appointing draft financial statements before auditors examine and appointing an
auditor.
6. Approving membership fee, Salary scales and Signatories.
7. Approving all write offs and disposables.
8. Revising major financial policies if necessary.

2.2 The Authority of Executive Director:

1. Opening and closing bank accounts.

2. Approving material and service procurement within the budget.
3. Approving write offs and disposals, Bad debts less than 10,000 ETB and Fixed
assets less than 20,000 ETB.
4. Approving new system of computerization and networks.
5. Approving purchases less than ETB 50,000.
6. Approving trips for YIDA’ work.
7. Approving payroll and making sure that salaries are paid on time.

2.3 The Authority of Finance and Admin Head:

1) Approving material and service procurement within the budget.

2) Approving purchases below ETB 5,000 and Petty cash replenishment.
3) Revising financial and accounting procedures if necessary.

3. FINANCIAL PHILOSOPHY

3.1 Stewardship

We believe in keeping and using YIDA’ resources to promote excellence in every

endeavor. Therefore, we strive to develop, invest and use our funds to insure YIDA’
financial viability and to achieve YIDA’ purpose by carefully administering the
resources.

3.2 Transparency

We believe that it is important to maintain good reputation before the society and
government. We are to be transparent and inform all concerned bodies who require the
YIDA’s financial statements. By being transparent, we would like to protect the YIDA
from any suspicion of misappropriation of money.

6
3.3 Accountability

Having a good accounting system will help the YIDA to document, record, summarize
and report the financial movement. It also helps the YIDA to be accountable.
Accountability includes both accurate cares, the confirmation by audit, and publicly
distributed YIDA’ financial statements. It also includes availability of the information to
the concerned body. YIDA is accountable to its founders, donors, stakeholders and the
government.

3.4 Integrity

The attributes of complete honesty, truthfulness and blamelessness are expected from
good stewards. YIDA strives for the accuracy of financial statements and the fact that
everything was done according to the policy to show the integrity of the YIDA.

3.5 Planning

Having a good accounting system helps to keep financial history of finance. This in
return helps YIDA to make sound financial decisions, identify wasteful spending and see
cost effectiveness of the YIDA. Good accounting system helps budgeting and financial
planning. It also leads in which direction the YIDA should go.

3.6 Reporting

For the purposes of follow up, control as well as financial decision making, timely reports
are essential parts of YIDA financial philosophy. YIDA strives to prepare monthly,
quarterly and annual financial statements or reports on time.

4. FINANCE OFFICE

4.1 Organizational Structure

The organizational structure of YIDA project comprises of the General Assembly, the
Board of Directors, the Executive Director, the Project Accountant, Heads of
Departments and general workers. The General Assembly is the highest in power
hierarchy of the project with ultimate decision power with regard to project’s affairs. The
Board of Directors reports to the General Assembly and ensures the execution of
decisions passed by the General Assembly. The Executive Director reports to the Board
of Directors and is responsible to manage the overall project operation and ensure the
effective implementation of day-to-day project activities. The overall structure of the
project and details on manpower requirements are presented below consecutively. Totally
the organization has 13 full time workers and 8 volunteers regularly work with the
organization.

7
 General Assembly

Auditor

Board of Directors

Executive Director

Admin and Finance Project Coordinator

Center Managers

Counselors Librarians Tutors Cookers Guards

4.2 Finance Office Responsibilities

The general responsibilities of the Finance Office include the following activities:

 Collecting and disbursing cash.

 Checking, journalizing and posting all accounting documents received from
others.
 Keeping general ledger accounts as whole and subsidiary ledgers for the detail
operation.
 Passing all the necessary adjusting and closing entries.
 Closing of accounts at the end of a fiscal year.
 Preparing financial reports for use by management quarterly and as and when
required.
 Getting accounts audited by professional external auditors.
 Keeping all records related to funds received and to be received.
 Collecting all receivables and keeping adequate information about all receivables
of the YIDA.
 Recording YIDA’ expenditures and exercising controls over cash and expenses to
the best efficiency.

8
 Preparing reports and statements on how each fund account is utilized.
 Exercising close follow-up of actual or promised receivables.
 Maintaining and updating the accounting systems, concepts, codes and code
structures, forms and procedures of this Finance Manual.
 Designing, developing and producing a better financial system.
 Recording costs and expenses of YIDA for budget development and preparation
of periodic financial reports.
 Keeping complete and up-to-date records of fixed assets and close follow-up as to
their physical existence.
 Maintaining up to date, computerized fixed assets register for all categories of
fixed assets by location and custodian.
 Ascertaining that all fixed assets are all tagged during physical count.
 Conducting monthly reconciliation of the balances in the fixed asset register with
those of the general ledger by location.
 Ascertaining that all fixed assets are depreciated and disposed, are removed from
the books as per the requirements of the Law.
 Compiling property data as required.
 Maintaining up-to-date computerized stock records for all categories of store
items classified by cost center custodian and location.
 Conducting monthly reconciliation of stock balances maintained by category on
the General Ledger with the total of the itemized balances reflected in each stock
record of the same category as is in the General Ledger; and uses journal vouchers
to rectify errors, if any.
 Coordinating and conducting year-end stock taking.
 Completing the year-end stock taking by doing valuation and do reconciliation
with both the stock records and the Genera Ledger.
 Investigating and reporting on discrepancies established as a result of the
reconciliation conducted.
 Consult and assist all stock carrying units and individuals in developing improved
methods of stock record maintenance.
 Designing and implementing a control system for the selling price of the
services/items to be sold or the fees collected as per the approved standard.
 Preparing payroll and paying salaries on time.
 Maintaining and keeping used documents.
 Preparing budget.
 Comparing performance against budget and preparing budget utilization report.
 Costing of all fixed assets and stock items for budget preparation.

9
5. CHART OF ACCOUNTS
A chart of accounts contains a list of accounts under which the financial operation of a
given unit is summarized. It contains the names of accounts and the identification
numbers assigned to each account. It is designed to include not only the major accounts
but also the subdivisions to accommodate the accounting structure.
Coding Structure:
Level 1: Asset
Level 2: Liability
Level 3: Equity
Level 4: Revenue
Level 5: Expense

General Ledger Accounts Subsidiary Ledger Accounts

1 Assets
10 Current Assets
10000 Petty Cash
10100 Cash in Bank
10200 Regular Checking Account
10300 Payroll Checking Account
10400 Saving Account
10500 Special Account
10600 Purchase Advance
10700 Prepayment

11 Receivables
11000 Accounts Receivable 11001 By name of debtors
11100 Contract Receivable 11101 By name of debtors
11300 Staff Debtors 11301 By name of debtors
11400 Other receivables
11500 Allowance for doubtful account

12 Inventory
12000 Supplies Inventory 12001 By Type
12050 Food Inventory
12100 Book Inventory
12200 Other Supplies at Store
12300 Fixed Asset at Store
12400 Medical Supplies at Store
12600 Cleaning Supplies at Store
12700 Medical Equipment at Store

10
14 Other Current Asset
14000 Prepaid Expenses
14100 Employee Advance
14200 Deposit for House Rent
14600 Goods in Transit
14700 Other Current Asset
14800 Working Progress Training

15 Fixed Asset
15000 Furniture & Fixtures 15001 By values
15500 Office Equipment 15501 By values
15150 Student Chairs
15200 Vehicles
15300 Medical Equipment
15350 Other Fixed Asset
15500 Building
15600 Building Improvement
16900 Land

17 Accumulated Depreciation
17000 Furniture 17001By Type
17100 Equipment
17200 Vehicle
17300 Other Fixed Assets
17500 Building
17600 Building Improvement

19 Other Fixed Asset

19000 Deposit
19100 Organization Cost
19150 Accumulated Amortization Organization Cost
19200 Note Received Non-current
19900 Library Books

2 Liability
20000 Accounts Payable

11
23-24 Other Current Liability
23000 Accumulated Expense
23200 Wages Payable
23300 Deduction Payable
23400 Federal Payroll Tax Payable
23600 State Payroll Tax Payable
23800 Local Payroll Tax Payable
23900 Income Tax Payable
24000 Withholding Tax Payable
24100 Employee Benefit Payable
24200 Current Portion Long-term Debt
24500 Contract Payable Current
24800 Other Current Liability
24900 Suspense Clear Account

27 Long-term Liability
27000 Notes Payable Non-current
27100 Contract Payable Non-current
27400 Other Long-term Liability

3. Equity
39005 Retained Earning

4. Revenue
40000 Membership Fee
41000 Foreign Grants and donations
41200 Local Grants and donations
41400 Private gifts
45400 Finance Charge Income

5 Expenses
50-52 Program expenditure
50000
51000 Salary for program staff
51001 Food for beneficiary
51002 Cloth for beneficiary

12
51003 Medical expense for beneficiary
51004 Tuition and tutorial for beneficiary
51005 Educational visit and travel
51006 Uniform for beneficiary
51007 Stipend of University Student
51008 Transportation to school
51009 Community integration expense
51010 Job placement
51011 Books and reference material
51012 Computer & accessory
51013 Sport material & Facilities
51014 Pocket money for beneficiary
51015 House rent for TRC and CLC
51016 Utility for TRC and CLC
51017 Furniture for TRC and CLC
51018 Maintenance for TRC and CLC
51019 Kitchen Tools and Material
51020 Cleaning and hygiene expense
51021 Incentive for beneficiary
51022 Other Small expense for TRC and CLC

53-59 General and Administrative Expenses

53000 Salary and wages
53001 Direct Administrative OH expenses
53002 Trainers fee
53003 Perdiem expenses
53004 Maintenance expenses
53005 Transportation expenses
53006 Clearing and supply expenses
53007 Stationary materials
53008 Printing of materials
53009 Cost of publication and supply
53010 Other costs
53011 Medical expenses
53012 Fuel & Lubricant expenses
53013 Labor and wages
53014 Building rent expense
53015 Advertising expense
53016 Accounting fee
53017 Legal fees

13
53018 Bad debt expense
53019 Depreciation expense
53020 Professional fund-raising fees
53021 Employee benefit expense
53022 Pension plan contribution (Provident Fund)
53023 Telephone expense
53024 Water bill expense
53025 Electrical bill expense
53026 Postal & shipping expense
53027 Printing and stationary expense
53028 Publication expense
53029 Conference expenses
53030 Meeting expenses
53031 Interest expenses
53032 Payroll tax expenses
53033 Compensations of officers
53034 Salary expenses
53035 Bank service charge
53036 Other expenses
53037 Other tax expenses
53038 Fixed assets written off
53039 Gain/Loss of sales of assets

6. ASSETS

The properties belonging to YIDA and placed under the control of management are
recognized as its Assets.

6.1 Current Assets

Cash and other assets that may reasonably be expected to be realized in cash or sold
or used up usually within a year or less, through the normal operations of YIDA, are
referred as current assets.

6.1.1 Cash in Bank

a. Current Account

14
 All balances available to the YIDA on demand which are useful for its day-
to-day operation are deposited in the YIDA current account. The YIDA
____________ current account is a non-interest-bearing account.

b. Saving Account

YIDA deposits its funds in the __________ account to receive interest in

the fund deposited with the bank.

6.1.2 Cash on Hand

A sound system of cash control requires that payments be made by checks.

However, drawing a check is not practical for minor expenditures or in cases of
emergency or where circumstances demand cash payments. Therefore, it
becomes necessary to maintain a petty cash fund whereby only small non-
routine expenses and personal advances should be paid from cash on hand.

(See “Payments” for further information, p. 33.)

6.1.3 Bank Reconciliation

In principle, the bank record and YIDA’ record should always agree but this is
not often the case. There are factors that cause difference between the two.
Some of these factors are:

- Time lag in recording transactions either by the bank or by

YIDA.

- Clerical errors that could be committed either by the bank or

YIDA.

- Time lag by YIDA in recording certain bank charges and

deposits received by the bank on behalf of YIDA which usually come to
the attention of YIDA at the end of a received month when bank
statements are issued.

All bank accounts must be reconciled monthly by the accountant.

Reconciliation should be made as soon as the statements are received from

the bank. The reconciliation, over and above proving the accuracy of
YIDA’ accounts, ensures the following:

- That no unauthorized cash is withdrawn from YIDA’ account.

15
- That no cash has been lost in the process of transacting
between the bank and YIDA.

- That the bank inadvertently or otherwise has not failed to

record transactions relating to YIDA.

Bank Reconciliation Procedure

Bank reconciliation must be checked for correctness by reference to the

source documents of items reported as outstanding.

 The first step in the process of bank reconciliation is comparing the

bank account of YIDA with the bank statement. If the two balances
agree, there is no further action to be taken. However, if the two
balances do not agree, the following steps should be taken.

- Check with tick marks “√” all items common to both the
account book and the bank statement and list checks issued but
not presented to the bank and also all deposits recognized by
the bank account but not by the bank statement.

- Check also if bank charges and interests are all accounted for.

- Check if entries are all correct with the bank and in YIDA’
book.

 Having checked the above items, the second step is to prepare a bank
reconciliation statement.

 Based on the statement, correcting entries will be recorded to adjust

YIDA' accounts.

 If clerical errors made by bank are discovered or checks belonging to

another person are drawn from YIDA' account, it should be notified to
the bank immediately.

 The accountant must take immediate follow-up with the bank

regarding missing bank advice or deposits not cleared with a
reasonable time.

 A check outstanding from more than 30 days should be carefully

investigated and appropriate action should be taken.

16
 (See Format No. 003.)

6.1.3 Account Receivable

Any promise to pay YIDA for services already rendered or products already
delivered are categorized as receivables. This could be receivable from
different organizations, receivable resulting from a sale, assets, books, fees, etc.

6.1.4 Prepaid Expenses

Examples of prepaid expenses are: pre-paid rent, insurance premiums paid for
the upcoming period, etc. For easy reference, documents pertaining to prepaid
expenses will b kept in a separate file. In the payment vouchers, a clear
reference is written to expedite easy retrieval.

6.1.5 Inventory

The term inventory is used to designate supplies at store, supplies at store, and
fixed asset at store.

6.2 Fixed Assets

 Tangible assets used in the YIDA that are of a permanent or relatively fixed
nature are referred to fixed assets. This includes equipment, machinery,
building, and land.

 An asset that has a value of ETB 5000 (Five thousand ETB) or above and a life of
beyond one year shall be classified for control purpose as a fixed asset.

 Coding or tagging and annual physical count of all fixed assets of YIDA shall be
conducted by the Finance Office.

 All fixed asset reallocations, replacements and disposals shall be authorized by

the Director.

 All ownership certificates, title deeds and registration cards for fixed assets shall
be kept in a safe under the responsibility of the Finance Office.

 All YIDA vehicles shall have maintenance cards in which tires, spare parts, and
other accessories will be recorded.

6.2.1 Building

17
YIDA rented a building from a private owner under the contractual property
use agreement.

The buildings of YIDA shall be repaired and maintained as required.

6.2.2 Vehicle

All YIDA vehicles shall have a comprehensive insurance i.e., a policy against
all risks including passengers.

All vehicles shall be serviced immediately after 5000 kilometers.

6.2.3 Equipment & Furniture

Equipment, furniture and fixture are recorded at cost or current market value at
acquisition.

Accumulated Depreciation: is the annual, non-cash expense that is

determined by estimating the useful life of each asset. Depreciation represents
a decrease in the value of property and equipment to account for that portion of
the useful life that is used up during each accounting period.

Net Property and Equipment: is the cost of property and equipment less
accumulated depreciation.

(See Format No. 011.)

Depreciation of fixed assets: is computed by the straight line method at the

following rates per annum:

Buildings ...........................................................................5% per annum

Machinery.............................................16% first year & 12 % thereafter

Furniture and equipment....................................................................10%

Vehicles..............................................................................................20%

18
19
7. LIABILITIES

The debts of YIDA, representing promises to repay for the properties or services by the
creditors are known as liabilities.

It includes:

 Short-term liabilities: this refers to the outstanding amounts that YIDA owes
to others which are due within the current accounting period.
 Long-term liabilities: this refers to the outstanding amounts that YIDA owes
to others which are not due within the current accounting period.

8. EQUITY

Equity represents the value or net worth of the YIDA. It is equal to the difference
between the sum of the assets and the total of the liabilities at any specific date. It is
often referred to as the net worth since its reported value is equal to the difference
between total assets and total liabilities.

It includes:
- Capital contributions of donors.
- Retained net surplus (deficit) prior years: it is the amount of
income or loss accumulated since the formation of YIDA.
- Net surplus (deficit) of the current year: this refers to the
amount of income or loss generated in the current year.

9. REVENUE

The inward flow of money or properties arising from the operation of the YIDA is known
as income or revenue.

 Net income from the operation: income which is a direct result of the YIDA’ financial
activities less expenses directly related to, or allocated to, the management of the
fund.
 Money from membership and training is collected to cover the programs and
operating expenses.
 Income from grants for loan fund capital: funds donated to the YIDA to capitalize the
loan fund, that is which are restricted to use as lending funds and cannot be sent on
operating expenses.
 Any donations to the YIDA will be deposited in the YIDA Bank Account.
Establishing a procedure for receiving money will help the YIDA to record the cash
flows and hence promote accountability.

20
9.1 Cash Receiving Procedure

a. Procedural Guides

 Cash receipt vouchers should be used when collections are made. No

disbursement shall be made from collection.
 The cashier will prepare a cash receipt voucher in triplicate for every receipt
of cash in the name of YIDA.
 The cashier will issue the original of the cash receipt voucher to the payer
immediately and lock the cash or check.
 The cashier will then perform the following:
- Keep accounting copy of the cash receipt voucher in a safe place until the
cash or check is banked.
- Record the cash receipt voucher date, number and amount in the
appropriate cash or check receipt column of the bank register book.
- Assemble all cash and check receipts once each week and prepare
appropriate bank deposit slip. All cash received shall be registered on an
individual receipt basis and receipts should be reconciled with the amount
of cash deposited.
- Deposit the cash or checks to the bank account of the YIDA every week
and obtain from the bank an official copy of the deposit slip duly stamped.
- Prepare summary sheet of the deposits and give the accountant the
summary sheet with the attached slips.

 Local purchase advances shall be settled within a week from the date the
money is taken.
 Travel advances and other similar items given to employees shall be settled as
soon as the travel is over.

b. Internal Control

 Surprise cash count should be carried out any time.

 The cash safe should always be kept under lock under the responsibility of the
petty cash holder.
 The cash holder should not have access to general accounting records.

9.2 Check Receiving Procedure

21
  The cashier will prepare a cash receipt voucher in triplicate for every receipt of
check in the name of YIDA.
 The cashier will make sure that the check is made payable to Youth Impact
Development Association.
 The cashier will make sure that the check is personal or private company and if so
that it is certified by the drawer's bank.
 The cashier will make sure that the check is neither postdated or stale dated.
 The cashier will make sure that the government agency checks are accepted
without certification.
 The cashier will make sure that all checks should be crossed in front of the payer
and stamped on the bank side with the YIDA' stamp.
 Other procedures and control are similar to cash receiving procedures.

(See Formats No. 004, 007 and 008.)

10. EXPENSE

The outward flow of money and other properties in conducting the activities to earn
income is known as expense. It is the cost of running the YIDA. Hence, it represents the
costs that are necessary for the YIDA to generate revenue and thus remain in operation.

The following are examples of YIDA expenses:

 Salaries and benefits: payments to employed faculty and staff for services
rendered.
 Academic expenses: textbooks, library books, accreditation fee, etc. are examples
of academic expenses.
 Administrative expenses: costs incurred for administering the YIDA such as
stationary, insurance, legal fees, utilities such as electricity, water, etc.
 Depreciation: an annual, non-cash expense that is determined by estimating the
useful life of each asset.

11. PURCHASES

Based on the budget allocation, YIDA purchases whatever is needed for its operations.
To promote efficiency and control unnecessary expenses, YIDA designed purchase
procedures that promote accountability.

11.1 Purchasing Procedures

 Purchase requisition form has to be filled in by the person who would like to
have items

22
 The filled in purchase requisition has to be approved by the immediate
supervisor and the form needs to be submitted to the Finance Department.
 The accountant would check the availability of budget for the requested
item/material.
 Upon the approval of the accountant, the purchase requisition form will be
submitted to the purchaser for the purchase of requested items.
 All local purchases of stationary, supplies, equipment, etc shall be done through
the approval and authorization of the Finance Department.
 All foreign purchases shall be made through the approval of the Bethzatha
Health Services PLC Manager.
 All local purchases of stationary, supplies, equipment, shall be done through the
approval and authorization of the Finance Department.
 All foreign and local library books purchases shall be made through the
approval of the Director.
 All purchase orders shall be approved by the Finance Head.
 All purchases above ETB 5000 shall be approved by the Director. Purchases
below ETB 5000 shall be approved by the Finance Head.
 Maintenance and repair requisition shall be approved by the Finance
Department.
 Goods to be purchased shall be described fully and clearly and if needed
samples shall be attached.
 For purchases of up to 10,000 it is a direct purchase/Petty cash, for 10,001-
15,00 single quotation, 15,001-50,000 minimum three Quotation without
committee; for purchase 50,001-250,000 minimum three Quotation with
committee; for more than 250,000 open tenders will be implemented.
 In case the supplier is a sole distributor of the goods to be purchased, purchase
can be performed right from that source, provided that it is discussed and
minutes attached.
 The Finance Department shall evaluate the pro forma invoices or offers from
suppliers.

(See Format No.024.)

11.2 Delivering and Storing of Goods

 Goods purchased in the name of YIDA shall be recorded in “Good Received

Note” by the storekeeper before issued to users.

23
  Stock ledger card shall be prepared and users will sign out the items upon
issuance.
 All fixed assets shall be registered and tagged before issuing to users and
receiving persons shall sign for the assets received.
(See Format No.013, 025, 027 and 028)

12. PAYMENTS

For minor expenditures or in cases of emergency or where circumstances demand cash

payments, YIDA maintains a petty cash fund. However, other payments shall be made in
check.

12.1 Petty Cash Payments

A petty cash fund is a fund established to meet petty and recurring expenses, which
would not normally require the issuance of checks. The initial petty cash will be ETB
5,000. Petty cash fund, once allocated, shall remain unaltered until formally revised
or changed by management. This amount may be increased or reduced depending on
the volume of transactions which will be assessed periodically by the Finance Head
and with the approval of the Director.

The fund is established by the issuance of a check in the name of the petty cash
holder for the amount of the fund. The Cashier handles the petty cash fund.

a. procedural guides
 For any payment request, Cash Payment Voucher has to be filled in.
 The request has to be approved by the accountant.
 The entry required to establish the petty cash fund is to debit “Petty Cash
Fund” and credit “Cash in Bank.”
 When disbursements are to be made from the Fund, the receipts or vouchers
must be presented to an authorized official for his/her review and approval.
 Based on the receipts/vouchers, petty cash payment voucher is prepared and
approved by a designated official.
 The approved payment voucher and the supporting documents are sent to
the petty cash holder for payment.
 After payment is effected, the documents are stamped "PAID".
 Then the petty cash holder registers the paid vouchers in a petty cash
summery and request form.
 The Petty Cash Book and Request Form and the supporting documents are
presented to the Accountant for review and approval.

24
 The Accountant prepares a check for the total expended amount in the name
of the petty cash holder.
 The Accountant classifies and codes the expenses debiting the appropriate
accounts and crediting cash in bank.
 After the check is signed by the authorized signatories, it is handed over to
the petty cash holder against signature on the check payment voucher.
 All payments of less than ETB 1000 shall be made from petty cash fund
while any amount greater than ETB 1000 shall be made by check.
 Petty cash will be replenished when it falls below 500.
 Replenishment shall be made against duly approved receipts for expended
amounts only.
 To indemnify cashier against any possible loss, ETB 2500 indemnity is
established to pay for money that is lost within a year.
 Any shortage shall be reimbursed by the custodian but any overage shall be
deposited to the YIDA bank account.
(See Format No. 006, 019, 021)
b. Internal Control
 The petty cash fund will always remain at a constant level.
 No debit or credit entry is made in the petty cash account unless the level of
the fund is increased or decreased.
 All cash and cash items shall be kept in a safe where only the custodian has
an access.
 Cash count of petty cash shall be made without prior notice to the cashier.
 The petty cash fund should be replenished only by a check.
 The petty cashier should at any one time have either cash or paid vouchers
or a combination of the two each of which should be equal to the petty cash
fund.
 Surprise cash count should be conducted from time to time.
 All paid vouchers/receipts should be stamped "PAID" and initialed by the
petty cash holder to avoid second reimbursement.
 Payment from the petty cash fund must be approved by an authorized
official.
 Pre numbered petty cash payment voucher must be used.
 Payment from petty cash fund must not exceed ETB 500 for any one single
payment.
 The fund must be kept in a safe.
 All bank accounts of YIDA shall be opened in the name of Youth Impact
Development Association

25
12.2 Check Payments

a. Payments guides

 Bank payment vouchers are prepared on receiving authorized documents,

legitimate invoices of a supplier or duly approved purchase order or any
other similar order from management officials.
 The accountant prepares the check and let it be signed by two signatories.
 All checks of the YIDA shall be signed by two signatories.
 The management decides who the signatories should be and their authority
limit of payment.
 If an error is committed in the check preparation, cancel the check by
writing "voided" and retain the check in the check book for control and
reconciliation purposes.
 The bank does not issue a debt advice for cost of check books and interest
charges which should be journalized from the bank statements and not
carried from month to month as reconciling items.
 Checks not presented that have been outstanding for more than six months
should be reversed.
 All checks written to the YIDA shall be made in the name of Youth Impact
Development Association and such checks shall not be cashed but deposited
to the YIDA bank accounts.
 All checks should only be received against issuance of pre-numbered cash
receipt vouchers signed by officially designated cashier.
(See Format No. 008.)

b. Internal Control

 Make sure that check signing authority limits are not exceeded.
 Maintain a tight security over all check books or pads and keep them under
lock whenever not in use.
 Be careful not to issue blank or unsigned checks.
 Do not issue checks for amounts less than ETB 1000 unless absolutely
necessary.
 Pay the duly signed check to the appropriate payee against a proper receipt
if the payee is an organization or against his/her signature on the bank
payment voucher if it is a personal check.

26
13. PAYROLL

Payroll refers to the staff net salaries and wages obtained after the gross pay has been
reduced by all payroll deductions such as income tax, advances and others. This refers to
the total amount paid to employees for a certain period.

Whenever payment of salaries occurs, it is important to keep very detailed records about
who is being paid, how much is the employee being paid, tax deductions, advances or
loans and at the end, make sure the person being paid signs his/her name indicating they
have received their salaries.

Date of salary payment is the 25 th of every month. Salary may be paid a day or two
before if the payday falls in the weekend.

a. Procedural Guides

 Salary payment is prepared by drawing a check to the order of the staff or the
cashier for the net pay.
 Upon distribution of the salary to the employees against signatures, entry is
passed debiting salaries and wages expense and crediting the various deductions
for the paid portion and unclaimed or withheld salaries and wages for the unpaid
portion.

b. Internal Control

 Payroll must be approved by a designated official and a definite routine for

paying the employees should be established.
 A definite procedure of notification must be followed when an employee is hired
or released.
 The payroll should be examined to verify the names of employees.
 All increases in pay rates must be properly authorized.
 Income tax should be paid to the Inland Revenue every other month.

It is the policy of YIDA to deduct from the salary of its employees only when expressly
authorized by law or authorized in writing by the employee himself/herself.

Payroll deductions include the following:-

a. Income tax, as per the existing law of the country.

b. Provident fund, as per the YIDA’ policy.
c. Other authorized deductions as established by law, government regulations or
court orders.
d. Any outstanding advances or financial obligations to YIDA.

27
 e. Miscellaneous deductions which include those authorized by the employees.

(See Format No. 020)

The following rates of income tax and the deductible amounts shall be applied subject to
changes upon the government tax laws.

Taxable income in ETB Taxation rate Deductible amount in ETB

0-600 Non 0.00

601-1,650 10% 60

1,651-3,200 15% 142.50

3,201-5,250 20% 302.50

5,251-7,800 25% 565

7,801-10,900 30% 955

Over 10,900 35% 1500

Example:

Taxable income = 2350 ETB

The tax shall be (2,350x15%)-142.50 = 210.00 ETB

Net Income = 2,350-210 = 2,140.00

14. ACCOUNTING SYSTEM

Though detail accounting functions are not stated, the total framework within which
accounting operates are described in this section.

14.1 Policy

 Computerized accounting system is used.

 YIDA will secure the details of a system of accumulating and presenting
financial information by gathering, classifying and summarizing data into
records, and will present the information in financial reports.
 YIDA shall maintain cash basis accounting system.

28
  YIDA shall maintain double entry accounting system.
 YIDA shall maintain accounting records for all donations received in kind at
equivalent ETB value.
 All free services of the YIDA professionals shall be quantified and included in
the accounting records both as fund and expenditures.
 YIDA shall maintain general ledger accounts in which all incomes and
expenditures of each year are recorded.
 YIDA shall maintain subsidiary ledger accounts in which detailed
expenditures for each type is recorded.

The sequence of procedure of the accounting cycle begins with the analysis and
journalizing of transactions and ends with the post-closing trial balance - the financial
statements.

14.2 Procedures

1. Transactions are analyzed: this involves identifying the accounts affected by a

transaction based on the financial documents such as receipts and invoices.
2. Transactions are journalized and posted to the ledger: once transactions are
analyzed and coded, they are going to be recorded in the journal and posted to
the ledger. (See Format No. 017.)
3. Trial Balance is prepared. The balance of each ledger account will be
summarized on a Trial Balance. The Trial Balance proves the equality of credit
and debit. (See Format No. 030)
4. Financial statements are prepared. From the Trial Balance, financial statements
(Income Statement & Balance Sheet) will be prepared quarterly. (See Format
No. 002 and 015.)
5. Adjusting entries are journalized and posted to the ledger. Data needed to adjust
the accounts are assembled. For some accounts such as depreciation, prepaid
insurance, etc., adjusting entries will be prepared at the end of each accounting
period.
6. Closing entries are journalized and posted to the ledger. All the expenses and
revenues are going to be closed at the end of the accounting period. The closing
entries will be made by debiting the Revenue accounts and crediting the
Expense accounts.
7. Post-closing trial balance is prepared. The Trial Balance that we get after
closing the accounts is the post closing trial balance; which is also the beginning
balance of the next accounting period.

15. CLOSING PROCESS AND FINANCIAL REPORTS/ STATEMENTS

29
15.1 Pre-closing Accounting

Before starting the closing process, the accountant has to check the following items:

 Make sure that all accounting transactions during the period are processed and
recorded in the proper accounts.
 Make sure that all significant and repetitive transactions like payroll
distributions, payment adjustment, etc. have been processed.
 Make sure that all subsidiary ledger balances of all accounts in the system add-
up to their respective control accounts.
 Make sure that monthly bank reconciliation has been carried out and
differences, if any, has been accounted for.

15.2 Pre-closing Trial Balance

A pre-closing trial balance is a comprehensive list of accounts in which real and

nominal account balances are included. It is a base for financial report preparation
and proofs that the sum total of debit entries is equal to the sum total of credit
entries.

15.3 Preparation of Reports

a. Income statement

The financial statement prepared to show the income, expenses, the net gain
or loss from the operating and financial activities of YIDA for a particular
period of time is known as income statement.

It is a periodical summary of income and expenditure accounts. This

statement of YIDA shows the sources of funds, the utilization of funds and the
balance left.

(See Format No. 015.)

b. Balance Sheet

 The statement prepared to show the financial position of YIDA at a

particular time, by proper arrangement and presentation of the names and
amounts of the various assets, liabilities, and net worth is known as
balance sheet.
 A balance sheet is a report in which the balances of all permanent
accounts are reported. It is a report which shows the financial status of

30
 YIDA at a specific date. A balance sheet differs from that of pre-closing
trial balance in that it contains balances of only permanent accounts.
 The balance sheet along with the income statement constitutes official
year-end financial reports of the YIDA.
 The fiscal (accounting) year of YIDA shall be from July 1 to June 30 of
each year.
 Every three months, using the format given, statement of receipts and
expenditures shall be prepared and submitted to Management.
 At the end of each accounting year financial reports, viz. income statement
and balance sheet shall be prepared.
 Financial reports produced by the management of YIDA shall not be
issued to third parties until certified by auditors.

(See Format No. 002.)

16. AUDIT

Like any organization, YIDA has to account for its funds and activities. It establishes
accounting systems and controls, and produces financial statements that reflect the nature
and results of its operations.

YIDA does not have an internal auditor. However, it establishes management control
system to ensure

 Financial and operating information is accurate and reliable.

 Risks to the YIDA are identified and minimized.
 External regulations and acceptable internal polices and procedures are
followed.
 Satisfactory operating criteria are met.
 Resources are used efficiently and economically.
 The YIDA objectives are effectively achieved.

YIDA examines its books by external auditors every year. An external audit is a formal,
independent review of an entity’s financial statements, records, transactions and
operations performed by professional accountants to lend credibility to financial
statements and other management reports, ensure accountability for donor funds, or
identify weaknesses in internal controls and systems.

31
In conducting an audit, external auditors examine the records supporting the financial
reports of YIDA and give an opinion regarding their fairness and reliability. They report
if the various operating divisions are following management policies and procedures.

The scope of the audit includes:

 Examining, on a test basis, evidence supporting the amounts and other disclosures in
the financial statements.
 Assessing the accounting principles used by the YIDA.
 Assessing significant estimates made by management.
 Evaluating the overall presentation of the financial statements.

Based on the results of audit procedures, the external auditor will provide an audit
opinion on the financial statements.

Procedure of Audit:

 The financial statements and reports will be submitted to the Board of Trustees.
 Upon approval of the statements and reports, external auditors will be appointed
to audit the books of YIDA.
 The external auditors will submit the final reports to the Board.
 The audit report will be submitted to concerned bodies upon request.

17. FINANCIAL PLANNING

17.1 Short-term and Long-term Planning

Planning is the framework that sets the stage for the financial management that will
follow. The planning framework reflects the overall management, the vision, the
programs and the financial requirements to run the YIDA’ operations. Team-based
planning is used for the YIDA' work plan and the identification of financial
implications.

The planning process incorporates:

1. Identifying and stating the mission of YIDA: This is the most general statement of
what YIDA is all about.
2. General Objectives: A series of two to five objectives that lend a greater degree of
precision to the mission statement.
3. Specific Objectives: Each general objective may be accompanied by specific
objectives that are capable of more direct and immediate measurement.

32
4. Major Activities: A description of specific activities that will lead to the
completion of the objectives. The following issues should be addressed:
a) Description of the evolution of the operational structure over the past three
years.
b) Current operations and structure.
c) Growth and composition of staffing requirements.
d) Growth and composition of other administrative expenses requirements.
5. Budget: The financial requirements for each of the major activities are
consolidated into a budget.
6. Resources: YIDA’ lists the physical, human, and financial resources necessary to
undertake each major activity. The funding section of YIDA covers the following:
a) Description of the funding volume, source, and cost over the past two-three
years.
b) Current funding: volume, composition and cost
c) Strategy to obtain funding
d) Cost of funds
e) Growth and composition of sources of funds
f) Income indicators and cost
7. Timeliness: Time requirements for major activities are estimated.
8. Evaluation: a) Identifying strengths, weaknesses, opportunities and threats. b)
General strategies to take advantage of available resources, and opportunities and
to confront weaknesses and threats.

17.2 Budget

The budget of YIDA refers to an estimate of the likely income and expenditure for an
accounting period. This presents the plan of financial operations for one year and,
through records and summaries, provides comparisons of actual operations with the
predetermined plan. YIDA shall have both operating and capital budget.

To prepare a budget follow the following steps:

1. Establish your objectives and involve every concerned body in the decisions.
2. Decide what is needed to fulfill these objectives.
3. Workout the cost with the help of other people.
4. Write down the details of money coming in and money going out.
5. Prepare the budget based on the previous year experiences.

 The Finance Office in cooperation with others shall prepare a consolidated budget
yearly to be approved by the Board of Trustees.

33
  The budget, once approved by the Board of Trustees, shall represent:
a. Authorization to carry out the operating programs contained in the budget.
b. Positive commitment by the operating management to attain the financial
objectives contained therein.
c. The budget packages may be distributed to the concerned departments and the
departments shall abide by it.

18. DOCUMENT HANDLING

Proper document handling is essential for accountability and control purpose. The
following guidelines are described for efficient used and unused documents:

 Accounting documents like cash receipts, check payments vouchers, cash

payment vouchers, goods receiving notes, goods issue voucher shall be pre-
numbered.
 All unused receipts and check books shall be kept in a safe or locked box under
the responsibility of the accountant.
 All unused accounting formats shall be kept in a lockable cupboard under the
responsibility of the user.
 All used accounting documents including ledger cards, store cards, used pads,
computer outputs shall be kept in an archive under the responsibility of the
accountant.
 Printed cash receipt vouchers shall be properly controlled by the accountant
through appropriate registration process of used and unused vouchers.

19. ADMINISTRATIVE MATTERS RELATED TO FINANCE

 Medical Expenses

YIDA established medical benefits for the individual employee. All employees, who
have finished their probation period, are entitled to this benefit.

YIDA will cover the medical costs for its employees as per the personnel policy.

Procedure

 The employee should fill in the medical form and get it signed by the immediate
supervisor.

 Upon the approval of the supervisor, the employee will be sent to approved
medical centers, clinics or hospitals for examination.

34
 (See Format No. 018.)

 Travel Expenses

1. YIDA will pay per diem to its employees who travel in side the Country _______
ETB per day for meal and hotel expenses.

2. YIDA will pay per diem to its employees who travel abroad $ ___________ per
day for meal and hotel expenses.

3. YIDA will pay per diem $ ________ per day for its employees if YIDA covers all
meal and hotel expenses.

Procedure

 The person who travels will fill in the form and get it approved by his/her
immediate supervisor.

 The Director will authorize payment to the person who travels.

 The cashier will pay the traveler.

(See Format No. 029)

 Leave Payments

All leave payments shall be done according to the YIDA Personnel Manual Policy.

21. FORMATS

Form Type Purpose Page

No. No.
001 Advance Settlement It is used to record settlement of money 52

35
 that is paid in advance
002 Balance Sheet It shows a statement of the financial 53
position of YIDA on a specific date
003 Bank Reconciliation It shows the reconciling items of cash or 54
check transactions reflected in YIDA
book and bank statement.
004 Bank Register Book It shows YIDA records of all the 55
transactions with bank.
005 Cash Deposit Transfer It shows cash collections and deposits 56
made the balance at a specific period.
006 Cash Payment Voucher It is used to record expenses paid from 57
petty cash fund.
007 Cash Receipts Voucher It is used to record transactions of cash 58
collections received from various
sources.
008 Check Payment Voucher It is used to record cash transactions 59
paid by check.
009 Collections Summary Sheet It shows the summary of cash 60
collections reports.
010 Debit/ Credit Note It is used to debit (credit) one’s account 61
for reception of materials.
011 Fixed Asset Register It is a historical data for an individual 62
fixed asset item acquired and put into
use.
012 General ledger Account It is a complete collection of all 63
accounts of YIDA.
013 Goods Receiving and Issue It is a format for recording receipt of 64
Voucher different goods and materials purchased
for use.
014 Hold It is money taken in advance for a 65
particular purpose.
015 Income Statement It is used to see the financial 66
performance of YIDA during a specific
period.
016 Inventory Count Sheet It is a record that shows the physical 67
existence of items at a specific period.
017 Journal Voucher It is a chronological record of YIDA’ 68
transactions entered in a journal before
it is entered in ledger accounts.
018 Medical Exam Request It is a form used for medical 69

36
 examination.
019 Payment Request Format It is a form used to request payments. 70
020 Payroll Form It is used to list the employees’ basic 71
salaries, benefits, deductions and net
salaries.
021 Petty Cash Book It is used to record the petty cash 72
payment voucher.
022 Petty Cash Checking List It is used to check the records against 73
payments
023 Petty Cash Requisition It is used to request petty cash 74
replenishment
024 Purchase Requisition It is a request for the purchase of 75
supplies or materials from local market.
025 Stock Card It is used to record receipts and issuance 76
of goods or materials.
026 Store Issue Voucher It is used to issue to the person who 77
requested the goods/materials.
027 Store Receiving Voucher It is used to ascertain receipt of 78
goods/materials from the store.
028 Store Requisition It is used to request goods/materials 79
from the store.
029 Travel Expense Report It is used to clear inland travel 80
advances.
030 Trial Balance It is used to list all the ledgers and their 81
debit and credit balances to determine
that debits equal credits in the recording
process.

37
 Youth Impact Development Association

Advance Settlement

Name ___________________________________

Date advance taken _____________________________

Amount taken in ETB _____________________________

Payment Voucher no. and date __________________________________

Amount settled ETB __________________________________

Checked and collected by _________________________________

Form No. 001

38
 Youth Impact Development Association

Balance Sheet

(Month, Date, Year)

Assets

Current Asset

Cash on hand & bank current accounts **********

Interest bearing deposits **********
Account receivables **********
Prepaid insurance **********
Total Current Assets **********
Fixed Assets
Cost of equipment **********
Accumulated Depreciation (********)
Library books **********
Total Fixed Assets ************
Total Assets ***********
Liabilities
Current Liabilities
Accounts payable ***********
Other payables ***********
Total Current Liabilities ***********
Long Term Liabilities
Mortgage payable **********
Other payable **********
Total Long Term Liabilities **********
Total Liabilities ************
Equity
Capital *************
Trust Fund *************
Retained Earnings (prior year) *************
Net Surplus (Deficit) current year *************
Total Equity
*************
Total Liabilities and Equity
*************

39
 Form No. 002

40
 Youth Impact Development Association
Bank Reconciliation
Date ---------------------------------------------
Current Account No. __________________ at_____________________________
Balance as per bank statement (Date, Month, Year)
***************
Add:
Deposits recorded by YIDA but not by bank ****************
Bank error ****************
****************
Deduct:
Outstanding check payments Account No. Amount
1. ************* *********
2. ************* *********
3. Bank error *********

****************
Adjusted Bank Balance
****************
Balance as per depositor records *****************
Add:
Deposits recorded by bank not by YIDA ********
YIDA error ********
*****************

Deduct:
Bank service charge ******
YIDA error ******
Check stub charge ******
****************
Adjusted YIDA Balance
****************

Form 003

41
 Youth Impact Development Association
Bank Register Book

Date Description Check Voucher Receipts Payments Balance

No. (Amount) (Amount)

Form 004

42
 YOUTH IMPACT DEVELOPMENT ASSOCIATION
Cash Deposit Transfer Form

Date ________________________________

Cash Collection _____________________ ETB

Check # _________________ Amount _____________________ ETB

# _________________ Amount _____________________ ETB
# _________________ Amount _____________________ ETB

Total ______________________ ETB

Depositor name: _______________________________

Signature: _____________________________

Form No. 005

Youth Impact Development Association

43
 Cash Payment Voucher

Date _____________________

Paid to ________________________________________________________________
Amount in words _______________________________________________________
__________________________________________

Amount in figure

Purpose
________________________________________________________________________
________________________________________________________________________
__________________________________________________________________

________________________
Authorized by

________________________
Receiver

________________________
Cashier

Form No. 006

44
 Youth Impact Development Association
Cash Receipt Voucher

No. _____________________
Date _____________________

Received from _________________________________________________________

Amount in words _______________________________________________________
__________________________________________

Amount in figure

Purpose
________________________________________________________________________
____________________________________________________________________

________________________
Cashier's signature

Cash/Check No. ________________________________

Allocation
Account Name Code Debit Credit

Form No. 007

45
 Youth Impact Development Association
Check Payment Voucher

No. ___________________
Date _____________________

Pay to ___________________________________________________________
Amount in words ___________________________________________________
__________________________________________

Amount in figure
Purpose
________________________________________________________________________
____________________________________________________________________

Check No. _______________________________

________________________ ________________________
Authorized by Authorized by

Received by: _____________________ Signature: _____________________________

CODE Debit Credit

General Subsidiary
Ledger Ledger

Form No. 008

46
 YOUTH IMPACT DEVELOPMENT ASSOCIATION
Collections Summary Sheet

Number: _______________________________
Date: _________________________________

No. Date Receipt Description Account Amount Remarks

No. Code

TOTAL

Prepared By: ______________ Checked By: __________________________

Form No. 009

47
 Youth Impact Development Association
Debit/ Credit Note

Debit Note No. _______________________

Store Issue_______________________
Date _______________________
Your Ref No. _______________________

To ______________________________
We have debited (credited) your account amounting to ___________________________

No. Description Unit Quantity Unit

cost

We have debited (credited) your account amounting to

_________________________________
________________________________________________________________________
_____
Received the above items in good condition. Name ___________________ Signature
________
Issued by ________________________________
Authorized by _______________________________

Form No. 010

48
 Youth Impact Development Association
Fixed Asset Register

Date Item Qty. Unit Estimate Salvage Tag Location Comments

receive Price d Life value No.
d

Form No. 011

49
 Youth Impact Development Association
General Ledger
Page
______________
Account No. ______________
Account Title _____________________________

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Form No. 012

50
 Youth Impact Development Association
Goods Receiving and Issue Voucher

No. ______________________
Date _____________________

Supplier _____________________________________
Purchase Requisition No. _______________________
Supplier's Invoice No. __________________________
Supplier’s Address: Kifle Ketema _______________ Kebele _________ House No.
_________
No. Description Code Unit Qty. Unit Total Expiry Remark
Price Price Date

Received by _______________________ Approved by

_____________________
Issued by _______________________ Approved by
_____________________
Remarks:
________________________________________________________________________
________________________________________________________________________
__________

Form No. 013

51
 Youth Impact Development Association
Hold

Name ________________________ Date ______________________

Money needed for _________________________________________________

Amount taken in ETB _______________________________

Approved by ____________________________

Received by ____________________________

Form No. 014

Youth Impact Development Association

52
 Income Statement
For year ended (Date, Month, Year)

Revenue
Revenue from Membership Fee **********
Revenue from Donation ***********
Revenue from Local Gifts **********
Miscellaneous income **********
Total Receipts **********

Expenses
Operating expenses *************
Administration cost *************
Other expenses *************
Total Expenditures
***********

Net income or loss

*************

Form No. 015

53
 YOUTH IMPACT DEVELOPMENT ASSOCIATION
Inventory Count Sheet

Date______________________

Serial Description Unit Quantity Total Difference Remark

No.

Counted by ________________________
___________________
Name Signature

Witnessed by ________________________
___________________
Name Signature

Form No.016
Youth Impact Development Association

54
 Journal Voucher

Subsidiary Ledger Particulars General Ledger

Debit Credit A/C No. Debit Credit A/C No.

Form No. 017

55
 YOUTH IMPACT DEVELOPMENT ASSOCIATION
Medical/Hospitalization Request

1. Name of Employee ___________________________________

2. Department __________________________
3. Job Title ______________________________________

Signature of Employee: ____________________ Date: ____________________

Approved by _____________________________Date:____________________

Remarks
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_______________

________________________________
Authorized Person name and signature

Form No. 018

56
 Youth Impact Development Association
Payment Request Form

Date _____________________

Requested by ______________________________________________________
Amount in words ___________________________________________________
__________________________________________

Amount in figure

Purpose
________________________________________________________________________
____________________________________________________________________

________________________
Checked by

Accounts to be charge: __________________________________________________

Form No. 019

57
 Youth Impact Development Association
Payroll for the Month of (Month, Year)

No Name Basic Transport Other Gross Inco Loan Total Net Signatu
Salary Allowance Allow. Salar me Dedu Deduc Pay re
y Tax ction tion

CHECKED & APPROVED BY:_________________________

A/C CODE A/C ENTRIES SUMMARY DR. CR.

Salaries (Basic) *************
Prov.Fund (___%) *************
Transport Allowance *************
Other Allowance *************
Income Tax Payable
*************
Cash at Bank
*************

TOTAL ************
***************
========= ========

Form No. 020

Youth Impact Development Association
Petty Cash Book

58
Date Descriptio Ref. Debit Credit Balance
n A/c code

Form 021

59
 YOUTH IMPACT DEVELOPMENT ASSOCIATION
Petty Cash Checking List

DATE OF COUNT: ___________________ TIME: ________________

1. FIXED PETTY CASH BALANCE

2000

2. CASH ON HAND

100X_______________ = _______________________
50X _______________ = _______________________
10X _______________ = _______________________
5X________________ = _______________________
1X_______________ = _______________________
0.50 X_______________= _______________________
0.25X_______________ = _______________________
0.10 X_______________ = _______________________
0.05X_______________ = _______________________
0.01X_______________ = _______________________

TOTAL _________________
3. ADVANCES PAID AS “HOLD” _________________
4. UNREPLENISHED RECEIPTS
AND VOUCHERS _________________
5. TOTAL (2+3+4) _________________
6. DIFFERENCE (1-5) __________________
7. PETTY CASH BOOK BALANCE ___________________

REMARKS
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________

CASHIER ACCOUNTANT

________________________ ___________________________

Form No. 022

60
 YOUTH IMPACT DEVELOPMENT ASSOCIATION
Petty Cash Requisition

Date ___________________________________________
The amount of petty cash used _______________________________
The amount of petty cash to be replenished _________________________
Prepared by ___________________________________
Checked by __________________________________

Form No. 023

61
 Youth Impact Development Association
Purchase Requisition

No. _______________________
Date _______________________

Requested by ______________________________

No. Description & Unit Quantity Previous Prices Remarks

Specification Unit Unit Unit
Price Price Price

Required on ________________________________
Prepared by ________________________________
Authorized by _______________________________

Form No. 024

62
 Youth Impact Development Association
Stock Card

Number __________________________
Article ______________________________
Description ___________________________________________________
Cost Price ________________________ Selling Price ______________
Invoice Date Package QUANTITY INV. &
Received or Size Received Issued Balance D.O.

Form No. 025

63
 Youth Impact Development Association
Store Issue Voucher

No. _______________________
Date _______________________

Issued to ___________________________
Store Requisition No. ______________________________

Ite Description Specification Unit Quantity Cost Total

m Price Issued Price Issued
No.

Total

Received by Store Keeper

Name ________________________________ Name
_______________________________
Signature _____________________________ Signature
_____________________________

Form No. 026

64
 Youth Impact Development Association
Store Receiving Voucher

No. _______________________
Date _______________________

Purchase requisition No. ___________________________

Received from ______________________________ Invoice No.
____________________

No. Description Specification Unit Quantity Cost Total

Price Receive Price Receive
d d

Goods checked by Store Keeper

Name ________________________________ Name
_______________________________
Signature _____________________________ Signature
_____________________________

Form No. 027

65
 Youth Impact Development Association
Store Requisition

No. _______________________
Date _______________________

Requesting Department ______________________________

No. Description & Unit Quantity Total Remarks

Specification Price Price

Required on ________________________________
Requested by ________________________________
Approved by _______________________________

Form No. 028

66
 Youth Impact Development Association
Travel Expense Report

Person Traveling __________________________ Department

_________________
Position Title _____________________________ Means of travel
______________
Monthly Salary ETB ________________________ Duration of travel
_____________
Travel to ________________________________
Date travel begins _________________________ Date travel ended
____________
Purpose of travel __________________________

Dat Place of Departure Arrival Time Spent Daily Amou

e Travel Allowance nt in
Fro To Date Hou Date Hou Day Hou ETB
m r r r

Total Per diem ______________________

Transportation ______________________
Other expenses _____________________
Total ______________________
Less advance ______________________
Difference Paid/Refunded ______________________
Signature of Traveling person ____________________________________
Approved by (Traveling person's supervisor) _______________________________

Form No. 029

67
 YOUTH IMPACT DEVELOPMENT ASSOCIATION
Trial Balance
(Date, Month, Year)

Account No. Account Name Debit Credit

Form No. 030

68