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Scheme Accountant Training

Financial Manual

Accounting Cycle Section D

Accounting Cycle Section D

Accounting Cycle: January 1 to December 31 Budgetary reporting Budgetary control Financial reporting are based on this cycle

Accounting Cycle
Identify transaction Analyze transaction Receipt and payment/ cash book entries Post to ledger Trial balance Adjusting entries Adjusted trial balance

Financial statement
Close temporary accounts Generate balance sheet

Compliance with Manual

Procedures binding on the NHIA Compliance mandated by Board Scheme failing to comply will be subject to disciplinary action

Purpose of Manual
Enable consistent classifications of
transactions Enable comparable information for assessing performance Provide uniform method of accounting and

Ensure accountability and stewardship of transaction undertake by staff

Scope of Manual
Covers processes and procedures to guide staff in the discharge of their duties Source of financial guidance for the NHIA and MHIS

Guiding Principles
Compliance with applicable legislations

Reporting in accordance with GAAP

Maintaining appropriate and effective internal control systems

Abbreviations Used
See handout

Important Concepts
Accounting process

Chart of Accounts

General ledger
Subsidiary ledger

Underlying Concept and Policies for Manual

Going concern Accrual basis

Materiality and aggregation Comparative information

Off-setting concept
Realization Prudence

Other Policies
NHIA and MHIS shall conform to the COA
Accounting shall conform to NHIA

Financial year shall be January to December

Budget Preparation MHISSection B

Budget Policy indicates that

1.MHIS shall operate within a financial plan for the year

2.Budget shall be in place before the beginning of the year 3.Responsibility rests with scheme manager and finance officer

Budget Time Table and Procedures

1. Scheme manager gives budget forms to various units to complete
2. They provide spending for past 12 months

1. Finance manager compiles initial budget
2. Scheme management reviews initial budget

Budget Time Table and Procedures

September contd:
1. Scheme manager submits draft to board 2. The board approves if there are no queries 3. Scheme manager informs management on approved budget 4. A copy of budget lodged with the NHIA

Budget Document - Contents

The budget

Summary of income
Summary of administrative expenses Subsidies budget Salaries budget Other staff costs Capital expenditure budget Public relations budget

Chart of Accounts Sect C

Policy: GL accounts shall be assigned a descriptive accounts title and code Purpose: organizes assets, liabilities, income and expenses into a format that facilitates examination and reconciliation

Scope: procedures apply to all GL accounts

Standards for the COA

Each account assigned a name and number Accounts are arranged in sequence in which they appear financial statements Unassigned codes left opened for later use

Chart of Accounts