Professional Documents
Culture Documents
World Bank Workshop Ministry of Finance Officials, Afghanistan Washington, D. C. September 12, 2007 A. John Vogt, Professor of Public Finance & Government, School of Government The University of North Carolina at Chapel Hill
Investment of temporarily idle funds: Expenditure & disbursement of funds Control of cash management
Laws: tax and revenue assessment & collection, Policies & procedures:. Addressing, for example, segregation of duties in collections, investment objectives. Surety bonds on officials collecting or handling cash: Such bonds protect Periodic reporting on cash management to governing authority, public, regulators External or independent audit or check of cash management activities & officials
governmental entity against officials & employees. Types: honesty, true accounting, faithful performance,
Banking
Have governing authority formally approve any bank or depository institution in which tax and other revenue collections are deposited, or from which payments are made. Insure or collateralize full value of money held in depository institutions. Evaluate financial condition of any depository institution before using it Utilize a central depository system: Such a system would consist of one or as few collection accounts as possible, a payroll account, an accounts payable account, and perhaps some other accounts for special funds. Such a centralized system relies on accounting records to track the equity of different funds in the central depository.
Banking
Identify needed and available banking services: lock box tax collection service, electronic drafting of taxpayer & enterprise customer accounts, zero- balance disbursement accounts with daily sweep into overnight investments, safety deposit or vault services, positive pay for disbursements, etc. Negotiate for or use request for proposal to select among banks capable of serving as official depositories Obtain and reconcile periodic bank statements. Should be done by someone who is not part of the collection & banking process.
What limitations concerning maturity, diversification, etc. should be placed upon the investment portfolio, on individual investments?
Disbursements
Approval to determine if requested disbursements are covered by budget, are payable, etc.? . Who approves disbursements? Who signs checks or authorizes drafts? Are dual signatures required? Should be someone other than the official approving disbursement (s). Use and control of signature machines/stamps