FINANCIAL POLICIES & PROCEDURES MANUAL - Ministry of Health

SECOND HEALTH SECTOR SUPPORT PROGRAM
FINANCIAL POLICIES &
PROCEDURES MANUAL
2008

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SUMMARY
SECTION 1 OVERVIEW .................................................................................................10
SECTION 2 INTERNAL CONTROLS ...........................................................................21
SECTION 3
SECTION 4
ACCOUNTING............................................................................................27
PLANNING & BUDGETS..........................................................................37
SECTION 5 NON-MONETARY ASSETS ......................................................................41
SECTION 6 MONETARY ASSETS .................................................................................45
SECTION 7
ACCOUNTABLE ADVANCES...................................................................53
SECTION 8 LIABILITIES & COMMITMENTS ...........................................................55
SECTION 9 RECEIPTS ...................................................................................................57
SECTION 10 EXPENDITURE & PAYMENTS...............................................................59
SECTION 11 CREDIT OR GRANT WITHDRAWALS ...................................................72
SECTION 12 PROCUREMENT & PURCHASING.........................................................78
SECTION 13 PAYROLL.....................................................................................................84
SECTION 14 FINANCIAL REPORTING........................................................................87
SECTION 15 PERIOD END PROCESSING....................................................................95
SECTION 16 FILING & ARCHIVES................................................................................97
SECTION 17 AUDIT ..........................................................................................................99
SECTION 18 FUND FLOW AND DISBURSEMENT ARRANGEMENT FOR PROVINCIAL
AND BELOW LEVELS....................................................................................................... 100
SECTION 19 ANNEXURES ............................................................................................ 112
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 2 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
TABLE OF CONTENTS
SECTION 1 OVERVIEW .................................................................................................10
1.1 FINANCE MANUAL..............................................................................................10
1.1.1 Purpose & Scope of this Manual...........................................................10
1.1.2 How to use the Manual (Electronic Version) .......................................10
1.1.3 Revisions to the Finance Manual..........................................................10
1.1.4 References..............................................................................................10
1.2 HEALTH SECTOR SUPPORT PROGRAM (HSSP)...................................................11
1.3 PROGRAM CYCLE.................................................................................................12
1.4 FINANCIAL MANAGEMENT GROUP ....................................................................13
1.4.1 Organisational Structure......................................................................13
1.4.2 Training ................................................................................................17
1.4.3 Financial Management Group Vision ..................................................17
1.4.4 Finance Office Objectives......................................................................17
1.4.5 General Practices ..................................................................................19
1.5 FUND FLOW DIAGRAM FOR SECOND HEALTH SECTOR SUPPORT PROGRAM....19
SECTION 2 INTERNAL CONTROLS ...........................................................................21
2.1 INTERNAL CONTROL ...........................................................................................21
2.1.1 Principal Internal Controls...................................................................21
2.1.2 Elements of Internal Controls...............................................................21
2.1.3 Review of Internal Controls..................................................................24
2.2 FINANCIAL DELEGATION ....................................................................................24
2.2.1 Authorised Signatories .........................................................................24
2.2.2 Authorisation Procedures .....................................................................24
2.2.3 Expense authorisation guidelines .........................................................25
2.2.4 Delegation to National Programs .........................................................26
2.2.5 Delegation to Provincial Health Departments .....................................26
SECTION 3
ACCOUNTING............................................................................................27
3.1 ACCOUNTING CONCEPTS ....................................................................................27
3.1.1 Double Entry.........................................................................................27
3.1.2 Cash or Accrual based accounting........................................................27
3.1.3 Currency Exchange Rate ......................................................................27
3.1.4 Accounting Cycle..................................................................................27
3.2 ACCOUNTING RECORDS ......................................................................................28
3.2.1 Documents/Source of Original Entry...................................................28
3.2.2 Books of Account...................................................................................29
3.2.3 Charts of Accounts................................................................................31
3.2.4 Format of Chart of Accounts.................................................................32
3.2.5 Transaction References - Quickbooks ...................................................32
3.3 BUDGET LINE OF EXPENDITURES.........................................................................33
3.4 COMPUTERISED ACCOUNTING SYSTEM ..............................................................33
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 3 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
3.4.1 Internal Controls Automated Data.......................................................33
3.4.2 QuickBooks Accounting System...........................................................34
3.4.3 Processing Entries in Quickbooks.........................................................34
3.4.4 Accounting in Provinces and National Programs ...............................35
3.4.5 Computer Maintenance ........................................................................36
SECTION 4
PLANNING & BUDGETS..........................................................................37
4.1 BUDGET & PLANNING PROCESS..........................................................................37
4.1.1 Program Appraisal document (PAD)...................................................37
4.1.2 Approved Budget And Annual Operating Plan...................................37
4.1.3 Budget Approval ...................................................................................39
4.1.4 Disbursing Approved Budgets..............................................................39
4.2 CASH FLOW BUDGETING.....................................................................................39
4.3 BUDGET MONITORING.........................................................................................40
4.3.1 quarterly interim (unaudited) Financial report (IFRs) ........................40
4.3.2 Budget Variances ..................................................................................40
SECTION 5 NON-MONETARY ASSETS ......................................................................41
5.1 DEFINITION..........................................................................................................41
5.2 FIXED ASSETS .......................................................................................................41
5.2.1 Capitalisation Policy.............................................................................41
5.2.2 Asset Groups.........................................................................................41
5.2.3 Acquisition Cost....................................................................................41
5.2.4 Insurance of Fixed Assets .....................................................................41
5.3 FIXED ASSET REGISTER ........................................................................................41
5.4 DISPOSAL POLICY ................................................................................................42
5.5 ACCOUNTING FOR FIXED ASSETS ........................................................................42
5.5.1 Purchase of Fixed Assets.......................................................................42
5.5.2 Receipt & Issue of Fixed Assets ............................................................42
5.5.3 Physical Count of Fixed Assets.............................................................43
5.5.4 Inventory Stickers / Tagging System ...................................................44
5.5.5 Depreciation..........................................................................................44
5.5.6 “In Kind” Contributions ......................................................................44
5.6 INVENTORY OF CONSUMABLES ...........................................................................44
5.7 MEDICAL SUPPLIES AND PHARMACEUTICALS....................................................44
SECTION 6 MONETARY ASSETS .................................................................................45
6.1 DEFINITION..........................................................................................................45
6.2 CASH ....................................................................................................................45
6.2.1 Cash Levels............................................................................................45
6.2.2 Cash Reconciliation Statement .............................................................45
6.2.3 Safe or Vault .........................................................................................45
6.3 PETTY CASH.........................................................................................................45
6.3.1 Internal Controls - Petty Cash..............................................................45
6.3.2 Establishing Petty Cash Fund ..............................................................46
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 4 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
6.3.3 Petty Cash Control................................................................................46
6.3.4 Petty Cash Claims.................................................................................46
6.3.5 Fund Replenishment .............................................................................47
6.3.6 Petty Cash Book ....................................................................................47
6.3.7 Cash Reconciliation Statement .............................................................47
6.3.8 Financial Loss .......................................................................................47
6.4 BANK ACCOUNTS ................................................................................................48
6.4.1 Authorised Signatories .........................................................................48
6.4.2 Designated Account (DA) / First Generation Imprest Account (FGIA)48
6.4.3 Advance Account/Second Generation Imprest Account (SGIA) .........49
6.4.4 Counterpart Funds Program Bank Account ........................................50
6.4.5 Bank Controls .......................................................................................50
6.4.6 Bank Reconciliation ..............................................................................50
6.4.7 Bank Account Responsibilities..............................................................52
6.4.8 Cheques .................................................................................................52
SECTION 7
ACCOUNTABLE ADVANCES...................................................................53
7.1 ADVANCES...........................................................................................................53
7.1.1 Request for Advance Form....................................................................53
7.1.2 Limit of Advances .................................................................................53
7.1.3 Procedures for Advances:......................................................................53
7.1.4 Settlement of Advances.........................................................................54
7.1.5 Control of Advances..............................................................................54
7.1.6 Recovery of Advances ...........................................................................54
SECTION 8 LIABILITIES & COMMITMENTS ...........................................................55
8.1 DEFINITIONS ........................................................................................................55
8.2 COMMITMENT CONTROL.....................................................................................55
8.3 RETENTION MONIES ............................................................................................55
8.4 SUPPLIER ACCOUNTS...........................................................................................56
8.5 CONTINGENT LIABILITIES....................................................................................56
SECTION 9 RECEIPTS ...................................................................................................57
9.1 DEFINITIONS ........................................................................................................57
9.2 RECEIPTS ..............................................................................................................57
9.2.1 Internal Controls - Cash Receipts.........................................................57
9.2.2 Official Receipt (OR) ............................................................................57
9.2.3 Receipt Voucher (RV) ...........................................................................58
9.2.4 Documents Required to be attached to Receipts ...................................58
9.3 REVENUE..............................................................................................................58
9.3.1 DPs or Lender Contributions ...............................................................58
9.3.2 Other Income.........................................................................................58
SECTION 10 EXPENDITURE & PAYMENTS...............................................................59
10.1 EXPENDITURE PROCESSING .................................................................................59
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 5 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
10.1.1 Internal Controls for General Disbursements ......................................59
10.2 ACCOUNT VERIFICATION AND CERTIFICATION .................................................60
10.2.1 Contracts...............................................................................................60
10.2.2 Verification............................................................................................60
10.2.3 Supplier’s Accounts ..............................................................................60
10.2.4 Payment Terms .....................................................................................60
10.2.5 Payees....................................................................................................61
10.2.6 Supporting Documents.........................................................................61
10.3 NATIONAL PROGRAM EXPENDITURE..................................................................61
10.4 PROVINCIAL EXPENDITURE .................................................................................62
10.4.1 Payment Limits (Provincial) ................................................................62
10.4.2 Payment Limit (Eligible SDG ODs) ....................................................63
10.5 BANK ACCOUNT DISBURSEMENTS ......................................................................63
10.5.1 Internal Controls - Disbursements - Local Bank Accounts..................63
10.5.2 Cheque Disbursement ...........................................................................64
10.5.3 Filing Procedure....................................................................................65
10.5.4 Cash Withdrawal Order........................................................................65
10.5.5 Money Transfer Order..........................................................................65
10.6 PETTY CASH DISBURSEMENTS .............................................................................65
10.6.1 Petty Cash Limits..................................................................................65
10.6.2 Forms To Be Used: ................................................................................65
10.6.3 Internal Controls For Petty Cash .........................................................65
10.6.4 Utilization of Petty Cash Fund.............................................................66
10.6.5 Replenishment of Petty Cash Fund ......................................................66
10.6.6 Filing Procedures ..................................................................................67
10.7 OTHER SPECIFIC EXPENDITURE ...........................................................................67
10.7.1 Internal Controls - Travel, Conferences & Hospitality ........................67
10.8 TRAVEL & TRANSPORTATION .............................................................................67
10.8.1 Domestic Travel ....................................................................................67
10.8.2 Overseas Travel.....................................................................................67
10.8.3 Travel Claims........................................................................................68
10.8.4 Transfer and Relocation........................................................................69
10.9 CONFERENCES, WORKSHOPS & TRAINING SESSIONS.........................................69
10.9.1 Conferences ...........................................................................................69
10.9.2 Workshops & Training .........................................................................69
10.10 HOSPITALITY COSTS..........................................................................................70
10.10.1 Definition ..............................................................................................70
10.10.2 Formal Occasions..................................................................................70
10.10.3 Work Occasions ....................................................................................70
10.10.4 Hospitality Approval ............................................................................70
10.10.5 Hospitality Allowances.........................................................................70
10.11 TELEPHONE CHARGES ......................................................................................71
10.11.1 Personal Calls .......................................................................................71
10.11.2 Payment of Telephone Charges.............................................................71
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 6 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 11 CREDIT OR GRANT WITHDRAWALS ...................................................72
11.1 WITHDRAWAL OR REPLENISHMENT OF PROGRAM FUNDS ................................72
11.1.1 Application for Withdrawal..................................................................72
11.1.2 Withdrawal Form - Special Commitment Letter ..................................73
11.1.3 Letter of Credit ......................................................................................74
11.1.4 Replenishments to Advance Accounts for the Operation of the Field Offices
(National Program, PHDs, and Eligible ODs) ...................................................74
11.2 GOVERNMENT COUNTERPART FUND WITHDRAWALS.......................................74
11.2.1 Key Internal Controls ...........................................................................74
11.2.2 Counterpart Funds Initial Advance .....................................................75
11.2.3 Counterpart Funds Replenishment ......................................................75
11.2.4 Direct Payment to Supplier or Contractor ...........................................75
11.2.5 National Budget (Program Based Budget-PBB) Contribution to Contracting
ODs And Provincial Referral Hospitals..............................................................76
11.3 SUPPORTING DOCUMENTS ..................................................................................76
11.4 WITHDRAWAL REGISTER.....................................................................................77
SECTION 12 PROCUREMENT & PURCHASING.........................................................78
12.1 CONTRACTED EXPENDITURES .............................................................................78
12.2 PAYMENT PROCEDURES.......................................................................................79
12.2.1 Payment Procedures for Contracted Expenditures:..............................80
12.2.2 Payment of Retention............................................................................81
12.2.3 Filing Procedures ..................................................................................81
12.2.4 Illustrations:..........................................................................................82
SECTION 13 PAYROLL.....................................................................................................84
13.1 PAYROLL...........................................................................................................84
13.1.1 Internal Controls - Payroll ...................................................................84
13.2 PAYROLL PROCEDURES........................................................................................84
13.2.1 Daily Time Record/Time Sheet .............................................................84
13.2.2 Employment contract............................................................................85
13.2.3 Payroll Register,....................................................................................85
13.2.4 Pay Slips ...............................................................................................85
13.2.5 Payment Procedures .............................................................................85
13.2.6 Accounting Entry for Payroll...............................................................85
13.2.7 Provincial and National Program Payrolls ..........................................86
SECTION 14 FINANCIAL REPORTING........................................................................87
14.1 OVERVIEW OF REPORTING...................................................................................87
14.1.1 Reporting Principles .............................................................................87
14.1.2 Reporting Timeframe ............................................................................87
14.1.3 Types of Reports....................................................................................87
14.2 INTERNAL FINANCIAL MANAGEMENT REPORTS................................................88
14.2.1 Budget Comparison...............................................................................88
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 7 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
14.3 REPORTING FROM PROVINCES AND NATIONAL PROGRAMS..............................90
14.3.1 Monthly Management Reports (MMR)...............................................90
14.3.2 Post Checking Documents ....................................................................91
14.4 EXTERNAL REPORTS.............................................................................................91
14.4.1 Production of IFRs................................................................................92
14.4.2 Internal Auditor....................................................................................92
14.4.3 Monthly Financial Management Reports.............................................92
14.4.4 Format of MONTHLY FINANCIAL Management Reports ...............93
SECTION 15 PERIOD END PROCESSING....................................................................95
15.1 MONTH END PROCEDURES .................................................................................95
15.2 YEAR END PROCEDURES......................................................................................95
15.2.1 Carry Forward Surplus or Deficit ........................................................96
SECTION 16 FILING & ARCHIVES................................................................................97
16.1 RECORDS MANAGEMENT ....................................................................................97
16.1.1 Supporting Documents.........................................................................97
16.1.2 Program File .........................................................................................97
16.2 SAFE KEEPING OF FINANCIAL RECORDS..............................................................97
16.2.1 Storing, Destroying & Accessing Documents .....................................98
16.3 COMPUTER FINANCIAL DATA.............................................................................98
SECTION 17 AUDIT ..........................................................................................................99
17.1 INTERNAL AUDITS ...............................................................................................99
17.2 EXTERNAL AUDITS...............................................................................................99
17.2.1 Management Letter Follow Up.............................................................99
SECTION 18 FUND FLOW AND DISBURSEMENT ARRANGEMENT FOR PROVINCIAL
AND BELOW LEVELS....................................................................................................... 100
18.1 ACCOUNTING SYSTEM (HSSP2) AT PHD AND BELOW LEVELS ........................100
18.2 PHD LEVEL........................................................................................................100
18.2.1 SDG Provinces....................................................................................100
18.2.2 Settlement of Advances.......................................................................104
18.2.3 Non-SDG Provinces ...........................................................................108
18.3 ELIGIBLE SDG ODS ...........................................................................................109
SECTION 19 ANNEXURES ............................................................................................ 112
19.1 ABBREVIATIONS .................................................................................................112
19.1.1 Financial Management Group............................................................114
19.1.2 National Program ...............................................................................115
19.1.3 Finance Unit at Provincial Level........................................................116
19.1.4 Finance Unit at District level.............................................................117
19.2 NONOJOB DESCRIPTIONS..................................................................................117
19.2 JOB DESCRIPTIONS .............................................................................................118
19.2.1 Job Descriptions – Central Level (HSSP Secretariat) ........................118
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 8 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
19.2.2 Job Descriptions - Provincial Level.....................................................125
19.3.................................................................................................................................140
19.4 HSSP TRAVEL & TRAINING ALLOWANCE RATES ............................................141
19.4.1 Per Diem / Allowances - HSSP Contractors ......................................141
19.4.2 Per Diem for supervision or mission/ Allowances for Health Staffs ..141
19.4.3 International Travel............................................................................142
19.5 LIST OF ATTACHMENT AND ANNEXURE ..........................................................142
************
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 9 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 1
OVERVIEW
1.1 FINANCE MANUAL
1.1.1 PURPOSE & SCOPE OF THIS MANUAL
This Financial Policy & Procedures Manual sets out the policies and procedures necessary to
comply with the Financial Management requirements of Pooled Funds, the individual donors and
government counterpart to the Second Health Sector Support Program (HSSP2). The manual is
intended to assist the HSSP to develop and maintain effective and efficient financial management
supplement to the Standard Operating Procedures (SOP) for Externally Assisted Programs
complement the special provisions of the Royal Government of Cambodia on the use of external
resources.
Donor Lender requirements are set out in each agreement for Grant, Credit or Loan.
In the event of inconsistencies with this Manual the SOP’s and Agreements will prevail.
1.1.2 HOW TO USE THE MANUAL (ELECTRONIC VERSION)
The manual contains an index with hyperlinks. When using the electronic version of the manual,
the user places the cursor on the Table of Contents hyperlink and hits the and
Keys together to be taken direct to the chosen subsection or page.
1.1.3 REVISIONS TO THE FINANCE MANUAL
The Financial Policies and Procedures shall be the responsibility of the Financial Management
Group who will review them continually and update them at least once every year with any
necessary changes resulting from feedback received.
New Policies or Procedures often flow from the recommendations made by the DPs’
supervision, External and Internal Auditors, changes in SOP or from changes to specific
requirements of DPs. They come about where variations are highlighted between what the policy
and the procedures say and what happens in practice. Amendments may also become necessary
when system and processes are changed, or when new technology affects the way we do things.
New or Amended Policies & Procedures shall be submitted to the Program Coordinator for
review and recommendation. They are then sent for approval by the Program Director. Once
approved an updated manual will be circulated.
1.1.4 REFERENCES
This manual is to be read in conjunction with and by referring also to:
1. Financial Management Manual for Externally Financed Programs / Programs in Cambodia
(MEF - September 2005);
2. Disbursement Handbook of the World Bank (May 2006)
3. Disbursement Handbook of the ADB (January 2007);
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 10 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
4. Manual on Standard Operating Procedures (SOP) for Externally Assisted Programs (MEF
August 2005);
5. The Royal Government of Cambodia Externally Assisted Program Procurement Manual
Goods, Works and Services (MEF August 2005)
6. Second Health Sector Support Program; The World Bank-Program Appraisal Document
(May 27 2008)
7. Program Documents and Agreements.
1.2 HEALTH SECTOR SUPPORT PROGRAM (HSSP)
The Ministry of Health of the Royal Government of Cambodia, together with the World Bank
(WB), Asian Development Bank (ADB) and the Department for International Development of
the United Kingdom (DFID), developed the Health Sector Support Program (HSSP) in 2003 for
improving accessibility and quality of health services and capacity building of the Ministry of
Health (MoH).
United Nations Population Fund (UNFPA) (Motherhood Program) joined the HSSP in 2004.
The ADB GMS Fund for Disease Control also uses the HSSP to manage that Project in
Cambodia commencing in 2006.
Agence Francais Development (AFD) has appointed HSSP to manage a $US 1.14 million (apx)
grant commencing in 2006.
The financing of the HSSP is through a credit from the International Development Association
(IDA) of US$ 17.2 million, two IDA grants totalling US$ 9.8 million, an ADB concessional loan
for US$ 20 million, DFID of US$ 22 million, ADB (JPFR) for health US$1.847 million, ADB
GMS grant for disease control of US$9 million and the government counterpart fund equivalent
to US$10 million.
The Health Sector Support Program is managed by a Program Director, Program Coordinator,
Secretariat (including Financial Management Group, Procurement Section, ADB Unit, WB Unit,
UNFPA Unit, Monitoring and Evaluation Section and various Specialist Managers and
Consultants). The Program Steering Committee which is composed of Ministers/Representatives
from MOH, MOP and MEF will monitor the progress of the program.
The HSSP support services are recognised as providing comprehensive and efficient program
management which may be utilised by other health related Programs and would be added to the
portfolio of funds being managed.
The manner in which HSSP accounts for its DPs, Lender or Client funds depends on the
requirements of the respective agreement between that DPs, Lender or Client and HSSP.
The Royal Government of Cambodia commits counterpart funds to HSSP through the National
Budget. RGC Funds are managed according to the instructions of the Ministry of Economics and
Finance (MEF).
SECOND HEALTH SECTOR SUPPORT PROGRAM (HSSP2)
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 11 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Based on the sector’s strategic plan for Health in Cambodia the Ministry of Health has received a
US$ 120 million from various partners to improve Health service delivery through the Second
Health Sector Support Program. An estimated US$110 million of the pledged resources will be
managed through a pooled fund. This pooled fund resources comprise US $30 million credit
from World Bank/IDA financing, US $50 million grant from DFID, and an initial allocation of
US $30 million grant from AusAID (for the first two years of Program implementation). In
addition, UNICEF and UNFPA have pledged some sizeable amount of resources part of which
will go into the pooled fund.
The Program will be implemented under deepened sector wide approach; an evolution from the
Sector Wide Management (SWiM) approach under which the current Health Sector Support
Program (HSSP) is being implemented (2003-2008).
The Program is defined as the wider development partner support provided to the Government
for its implementation of the HSP2. The Program is supported by multiple DPs (both pooling
and non-pooling) who have adopted common management agreements, set out in a Joint
Partnership Agreement.
The Program’s objective is to support the implementation of Cambodia’s Health Strategic Plan
2008-2015 that aims to ensure improved and equitable access to and utilization of essential
quality health care and preventive services with particular emphasis on women, children and
poor.
The Program’s development objective is to support the implementation of the Government’s
Health Strategic Plan 2008-2015 to improve health outcomes through strengthening institutional
capacity and mechanisms by which the Government and development partners can achieve more
effective and efficient sector performance.
The Royal Government of Cambodia commits counterpart funds to HSSP2 through the
National Budget. RGC Funds are managed according to the instructions of the Ministry of
Economics and Finance (MEF).
1.3 PROGRAM CYCLE
1. Program Identification;
2. Program Preparation;
3. Program Appraisal;
4. Credit or Grant Negotiation;
5. Agreement;
6. Program Implementation;
7. Program Completion;
8. Post Evaluation
Before a program can be declared effective the following key financial management arrangements
must be in place:
Financial responsibilities defined
Financial organisational structure decided
Key financial staff recruited and trained
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 12 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Financial accounting and financial management systems, processes and procedures developed and
made operational
Funds flow arrangements defined
Banking arrangements decided
Financial Management Manual updated and amended if necessary.
Program Operational Manual acceptable to IDA adopted
Appointment of the external auditors, along with consultant firm to assist in the implementation of
the Financial Management Improvement Plan; and
Signature of agreements providing for co-financing by or on behalf of DFID and AusAid.and
compliance with all the conditions precedent to their effectiveness (other than the effectiveness of the
credit).
Disbursement conditions
SDG Manual acceptable to IDA adopted.
MBPI Manual acceptable to IDA adopted.
1.4 FINANCIAL MANAGEMENT GROUP
1.4.1 ORGANISATIONAL STRUCTURE
The HSSP2 implementation arrangements will have two phases – the first phase will follow
arrangements established for HSSP and the second phase, expected to start no later than the end
of second year of the Program, will adopt arrangements that are more closely integrated into
Government’s institutional and functional arrangements as part of effects to move more towards
a sector wide approach.
Phase I
The organizational structure of the Financial Management Group (refer Attachment-1) follows
the principles of internal control, where there is a proper distribution, identification of
responsibilities and duties and separation of custodianship from the recording of financial
records. Procedures identified in the manual require the Program to provide reliable bookkeeping
methods necessary for reliable financial information and also require the Program to conduct
extensive training for all staff and staff development necessary to carry out their jobs effectively.
The Financial Management Group (FMG) was intended to work alongside the Department of
Finance and Budget of Ministry of Health. This FMG group is responsible for effective
management of funds of the Program through the Designated or First Generation Imprest
Accounts, Program Advance or Second Generation Imprest Accounts and Counterpart Funds
through proper budgeting, cash forecast, and effective payment and authorisation procedures.
The FMG is responsible for periodic consolidated financial management reports.
FMG is headed by Program Financial Management Group Leader who is assisted by a number of
financial officers and/or consultants responsible for planning and budgeting, accounts
management, program accounting, reporting and monitoring. The FMG currently consists of the
following:
Central Level:
1. Program Financial Management Leader
2. Financial Management Advisor;
3. Senior Financial Management Officer for (Pooled) funds;
4. Senior Financial Management Officer for Discrete DPs (non-pooled) funds;
5. Accountant for UNFPA funds;
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 13 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
6. Accountant for ADB (GMS) fund;
7. Two Accounting assistants-- Pooled funds;
8. Accounting Assistant –Non-pooled funds.
9. AFD Accounting Assistant
10. Cashier
National Programs
11. Accountant at National Programs;
12. Cashier at National Programs;
Provincial Level
13. Accountant at Provincial Level
14. Cashier (PHD )
District/Health Center level
15. Accountant at District/Health Center level
16. Cashier (OD & HC)
Job Descriptions or Terms of Reference for each member of the Financial Management Group
are included in the Attachment (5 to 19) to this Manual. Copies are given to the respective
officers or consultants.
Phase II
In Phase II, it is proposed that implementation of the Program will be integrated into the
respective MOH line departments and their Director Generals, including responsibility for
monitoring of reports and financial management; the Minister of Health will delegate the
responsibility Program oversight to Secretary of State and will form a Program Secretariat staffed
by civil servants which will provide support the designated Secretary of State and implementing
line departments administrative support.
Prospective organization structure in Phase II
The Department of Planning and Health Information will be responsible for (a) conducting
capacity assessment and planning for capacity building of Provinces which will implement SDGs
(b) planning for construction/renovation of facilities in accordance with Health Coverage Plan
(HCP); (c) ensuring monitoring of the Grants; (d) mid year review and JAPR reports for MOH
and DPs; and (e) conducting the various reviews carried out by MOH, including the mid-term
and completion reviews.
The Department of Budget and Finance will be responsible for (a) building its capacity to take
over management of Program funding from consultants within a defined time frame; (b)
releasing Grants to PHDs on the basis of the Joint Program Management Group decision; (c)
helping to build financial management capacity of PHDs; (d) providing quarterly and annual
financial management reports, including disbursement rate of Government and Program funds
and financial expenditures reports; and (e) producing quarterly financial monitoring reports to
DPs and MEF.
The Procurement Unit will be responsible for (a) building its capacity, within a specified
timeframe, to take over responsible from MOH consultants for Program-related procurement;
(b) preparing Pooled funds procurement plans for procurement which will be handled by the
IPA for submission to the MEF; (c) following up on Program procurement activities with
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 14 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
stakeholders; and (d) providing quarterly reports on Program Procurement status to the Joint
Program Management Group.
The Department of Personnel will be responsible for (a) providing administrative and technical
support to the MOH MBPI Committee during the recruitment process; (b) supporting the
expansion of MBPI scheme, and (c) conducting MBPI performance monitoring and evaluation.
The recently established Department of International Cooperation in MOH , with mandate to
implement the PD, has the role of facilitation, coordination, and improving transparency in the
Ministry by putting information relating to Program support on the Ministry’s web site. They are
expected to be a “one-stop-shop” where interested parties can obtain information relating to all
the support being provided to the health sector, in order to strengthen transparency and
accountability through enhanced oversight.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 15 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
PROPOSED HSSP2 PROGRAM MANAGEMENT AND OPERATION STRUCTURE PHASE II
HSSC
TWG-H
Ministry of Health delegates the responsibility to one Secretary of
State (Program Director)
Internal Audit
Department
DG for Health
Program
Secretariat
DG for Admin & Finance
Audit Report
DIC
DPHI
DP
DBF
H & A Planning HEF M7 E
including
SUPPORT
MBPI
ADMINISTRA
3 YRP
- HEF Planning
- HEF Monitoring
- HEF Reporting
SDG
Monitoring
Budget
Disbursement
JMYR
AOP
JAPR
FM
Monitoring
and Reports
Joint
Appraisal &
Joint
Supervision
HSP2 ICR
Procurement
Plans &
Reports
Accountable for
Report to
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 16 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
1.4.2 TRAINING
For the purpose of effective implementation of the financial management procedures, extensive
training on the general accounting procedures and the introduction of software should be
adequately conducted especially at the initial stage of program implementation. To ensure deeper
understanding of the procedures, they should be trained based on the actual documentations
using prescribed procedures.
For the purpose of capacity building of the program staffs, especially for the district and
provincial level, the FMG and Consultant Firm for FMIP (Financial Management Improvement
Plan) will conduct the basic accounting course to the staffs along with Program period. The
yearly training plan should be arranged and getting prior approval from management.
Long Time Training;
Some training on some specialized skills such as Emergency Obstetric Care Training or Life
Saving Skills Training requires more than a week and up to six months or even a year will be
necessary to pay reasonable allowance for trainees, tutors, training materials etc.
At the time of interim period of the program implementation, the allowance payment for “Long
Time Training” shall be paid case by case basis with the approval of DPs and MEF.
After the standard rate for “Long Time Training” allowances are set up, the new standard rate
will be applied for all.
1.4.3 FINANCIAL MANAGEMENT GROUP VISION
The Finance Department aims to:
1. Provide efficient quality service delivery with fast delivery of information;
2. Support the overall objective of ensuring that resources are devoted economically to the
highest priorities;
3. Enhance HSSP2 planning, budgeting, expenditure management and other management
decision-making processes through the strategic use of better financial information.
4. Foster a learning environment in which managers and staff can improve their ability to
supply and use quality financial information for strategic purposes.
5. Ensure transparency of all HSSP activities and transactions;
6. Minimise administrative overhead costs.
7. Timely submission of financial report including the quarterly IFRs and audited financial
statements (both quarterly and annually)
In order to fulfil this vision, all other HSSP2 and MoH Sections and Departments shall assist the
Financial Management Group by providing timely information, identifying areas of improvement
and providing constructive feedback.
1.4.4 FINANCE OFFICE OBJECTIVES
The financial management, administrative and accounting systems shall meet the following
objectives:
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 17 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Transparency
The financial and administrative affairs of HSSP2 will be conducted in a transparent manner and
due care so that Donors can be confident their funds will be used productively and efficiently for
their intended purposes.
Reporting
The financial and administrative system shall provide the HSSP2 Program Director, Program
Coordinator, Managers and Funding Agencies with the necessary financial information to ensure
efficient reliable implementation of Program goals. In addition it will provide accurate,
meaningful and timely financial reporting to stakeholders in accordance with the agreements,
rules and regulations.
Control
The financial system will provide for efficient and inclusive control and monitoring of the use of
funds advanced or allocated and other assets made available for the Program..
Simplicity
The financial and administration systems will be easy to understand for everyone. Input forms
and reports need to be easily understood by management and non-financial people so they
become a tool enabling prompt considered management decisions and, where necessary,
corrective action.
Flexibility
The financial and administration systems need to be able to be adapted to the differing specific
requirements of the various donors and sources of funds.
Efficiency
For the financial and administration systems to operate efficiently, the persons using the system
(e.g. who require finances or reports) need to provide properly documented and authorised
requests whilst the persons supplying the money and information from the system process the
requests swiftly and smoothly.
Technicians cannot always be expected to be knowledgeable about finances and administration,
whilst Finance Office team members cannot be expected to always know technical or medical
information or specifications. Efficiency can only be achieved through cooperation between the
different branches of the Program and with the Ministry.
Confidentiality
HSSP financial information will be kept confidential at all times. Financial information shall not
be released without the specific written authority of the Program Director (external) or the
Program Coordinator (internal).
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 18 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
1.4.5 GENERAL PRACTICES
Manual books will be written in ink (not pencil) and any alterations shall be made by ruling
through the error and writing the correct entry in a different coloured ink. White correction paint
and erasers should not be used. As far as possible, debits should be written in black ink and
credits written in red ink. The use of green ink should be reserved for Internal and External
Auditors. After making of correction, the authorized accounts supervisor has to sign his or her
initial and posted to the relevant accounting records.
All records should be prepared and updated promptly on a DAILY BASIS.
Computer records should, as far as possible be entered or updated daily. Incorrect entries should
be reversed and a new entry made (to ensure a full audit trail of transactions).
All paid documents must be stamped “Paid” and date as soon as payment is made. All entered
transactions must be stamped “Posted” or “Entered” and date immediately the transaction has
been entered.
Emails received from internal or external sources will be replied within 24 hours of their receipt.
If more time is needed, the recipient should acknowledge receiving the email and indicate the
approximate time necessary to prepare a proper reply.
1.5 FUND FLOW DIAGRAM FOR SECOND HEALTH SECTOR SUPPORT PROGRAM
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 19 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
HSSP2 - FUNDS FLOW DIAGRAM
RGC/MEF/
National Treasure
Pooling Donors
Discrete Donors
Counterpart
Account for the
Secretariat of the Program during
the interim period/ Department of
General Administration and Finance
after the interim period.
Pooled Account
(D/A)
Discrete
Donors
Account
Supplier
Activity
based
Activity
based
Suppl
ier
Central Departments
National Centre
Counterp
art (A/C)
Pooled
(D/A)
Discrete
(A/C)
SDG-
C1/AOP
Provincial Health Department
Counterpart
(A/C)
Pooled
(D/A)
Discrete
(D/A)
Supplier
SDG-
C1/AOP
Supplier
Provincial Hospital
Referral Hospital
NGOs for Health
Equity Funds
SDG-C2 &
C3/AOP
Counterpa
rt (A/C)
Operational District
Pooled
(D/A)
Discrete
(D/A)
SDG-C2 & C3/AOP
Legend:
Supplier
Supplier
Request
District
Referral
Hospital
Health
Centre
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 20 of 144
Cash
Release

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 2
INTERNAL CONTROLS
2.1 INTERNAL CONTROL
The control environment sets the tone of the organisation, influencing the control consciousness
of its people. It is the foundation for all other components of internal control, providing
discipline and structure. Control environment factors include the integrity, ethical values and
competence of the entity’s people; management’s philosophy and operating style; the way
management assigns authority and responsibility, and organises and develops its people; and the
attention and direction provided by the Executive. (Internal control - integrated framework
published in the USA by the Committee of Sponsoring Organisations of the Tread way
Commission (‘COSO’) in 1992.)
2.1.1 PRINCIPAL INTERNAL CONTROLS
HSSP2 adopts the internationally accepted standards and rules of Internal Control to safeguard
HSSP2 and its stakeholders’ funds. HSSP2 management are responsible for maintaining and
reviewing the control structures on a regular basis to ensure that all key controls are operating
effectively and are appropriate.
2.1.2 ELEMENTS OF INTERNAL CONTROLS
Competent Staff
To ensure proper and effective operation of a system of accounting and administrative controls,
HSSP2 should adhere to the following principle internal controls:
HSSP2 employees should be carefully selected, trained and their talents used intelligently in
the operations of HSSP and its systems and procedures.
Staff are competent, reliable and honest;
The Finance Office is headed by a financial executive with the appropriate background, skills
and training.
Each individual should thoroughly understand his or her own function and its relationship to
other functions in the system.
Clearly Defined Policies and Procedures
Organisational Chart
Segregation of Duties
Financial Policies and Procedures Manual prepared and regularly updated. Appropriate
documentation of procedures exists for all HSSP2 systems and functions such that the
organization could continue to operate if key employees leave.
A current organisational chart is maintained and followed.
Duties shall be segregated such that no single individual or a single group of individuals has
complete control over a sequence of related transactions. (That is, the person who authorises
a purchase requisition should not also be the one who buys goods and should not be the one
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 21 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
who confirms receipt of the goods or service.) Likewise, the person who authorises payment
should not be the one who keeps cash.
Inappropriate segregation of duties increases the probability of fraud, carelessness, and
unreliable record keeping. Proper segregation of duties permits the work of one person to act
as a check on work performed by another person.
Major duty segregations should be differentiated to:
Authorise transactions;
Execute the transaction;
Record the transaction;
Have custody of the assets or cash involved in the transaction;
The functions of the following in relation to goods and services shall be appropriately
segregated as:
Ordering
Receiving
Accounting for
Paying for
Persons reconciling the Bank Account are different to the persons making or approving
payments.
Separation of accountability from custodianship
Sufficient records
An employee should not have the opportunity to convert assets to personal use and cover up the
conversion by falsifying the related records.
Sufficient records, prompt recording and timely reports are important not only in accounting
for the institution's resources but also in providing accurate and reliable information for
management to manage activities or to detect irregularities.
Accounting Records are neat, current and in proper order;
Forms and Supporting Documentation shall provide for a system of authorisations before a
transaction can be completed.
Comparisons of Actual Results to Plans and Budgets shall regularly monitor transactions and
detect abnormal items;
Physical protection of assets
Regular controls (recording, checking, inspection, verification) and proper security should be
instituted to protect the institution's physical property from theft, fire and other types of
losses.
Means of protection include storing property in secure areas, maintenance of detailed
property records including controls over issuance, periodic inventory counts and insurance.
Appropriate action should be taken promptly regarding any differences.
Access to assets is permitted only in accordance with management’s authorisation.
For the purpose of identification, all fixed assets have to tag with specific assets code and
numbers which are related to respective programs and sources of fund.
Assignment of Authority and Responsibility
The requirements of integrity and prudence dictate the need for an appropriate division of
responsibility whereby the work of one employee independently checks the work of another.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 22 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Responsibility for the custodianship of cash, inventories, fixed assets, accounts receivable and
other assets is delegated. By means of accounting and other controls, independent check
shall be imposed on those who have custodial responsibilities.
Each higher level of the organization shall be responsible for monitoring or evaluating the
activities of its subordinates.
There shall be a hierarchy of Approvals for Payments and Procurement and clear lines of
Reporting;
Approval signatory must be a different person to the preparer;
Employees take regular vacations and other employees then prepare their work;
Principle of Financial Delegation:
Delegation of authority is the basis of control over the use of funds and other assets that are
under the responsibilities and accountabilities of HSSP2.
Internal and External Audit:
Independent internal and external audits are performed at regular intervals.
Especially the major “Terms of Reference” for the Internal Audit is as follow:-
• Ensure compliance with the relevant policies, procedures and practices and appropriateness
of systems.
• Undertake random monitoring visits to assess the adherence of the established standards and
procedures at all level, particularly provincial and operational district level. (The monitoring
visit schedules should be planned for yearly basis)
• Carry out regular internal auditing of the expenditures incurred at the central, provincial and
operational district levels.
• Review the costs incurred under various categories of expenditures of expenditures against
the general cost levels prevailing in the market.
• Review the adequacy and effectiveness of internal controls, identify and evaluate significant
exposures to risk, prepare periodical reports and make recommendations for system
improvement activities.
In conducting the review, special attention should be paid to the following:
• The program accounts have been prepared in accordance with acceptable accounting
practices or International Accounting Standards, if the letter is deemed to be more
appropriate for the situation.
• All program funds have been used in accordance with the relevant financing agreements, with
due attention to economy and efficiency and only for the purposes intended.
• Counterpart funds have been provided and used in accordance with relevant financing
agreements with due attention to economy and efficiency and only for the purposes intended.
• Goods and services procured (if any) have been procured in accordance with the applicable
procedures of External Assistance entities and Government.
• All necessary supporting documents and records have been kept and there is a clear audit trial
between such records and the documents presented to the MOH.
• In addition, the Review and Monitoring will also include the provision of basic technical
assistance to the provincial level staff for proper recording of experiences and maintenance of
program accounts.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 23 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
External Audit
• Financial audit of the Program financial statements by an independent auditor will be
conducted quarterly and on an annual basis.
2.1.3 REVIEW OF INTERNAL CONTROLS
“A successful system of internal control should be responsive to change.”
Effective risk management and internal control is therefore reliant on a regular evaluation of the
nature and extent of risks.
HSSP2 executive should, at least annually (generally following the recommendations arising from
the internal and external audits) conduct a review of the effectiveness of the organisation’s system
of internal control, make necessary improvements and should report to stakeholders that they
have done so.
2.2 FINANCIAL DELEGATION
2.2.1 AUTHORISED SIGNATORIES
The authenticated specimen signatures of the authorised signatories are required to be submitted
to the MEF, Pooled fund administrator (World Bank) and other discrete DPs or lenders before
any disbursements can take place. Any changes of Authorised Signatories must be notified to the
MEF and DPs or lender.
The Royal Government of Cambodia has appointed the following authorised official signatories
on their behalf:
1. Minister from Ministry of Economics & Finance
2. Minister from Ministry of Health
3. Program Director
4. Program Coordinator
5. Program Manager (GMS Program only)
The Minister from Ministry of Economy and Finance has authorised ministers from Ministry of
Health, Program Director and Program Coordinator to sign on their behalf, or appoint alternate
signatories or co-signatures on their behalf.
For all withdrawal applications the Senior Minister from MEF or his delegate should always sign.
For Program implementation, one of the two authorised alternate signatories shall sign on the
cheque or any disbursement form. The signatories have the responsibility of ensuring the proper
accessibility of the fund transfer request and reliability of the supporting documents.
2.2.2 AUTHORISATION PROCEDURES
PROCEDURES FOR APPROVAL PROGRAM ACTIVITIES AND DISBURSEMENTS
The purpose is to define a financial management system and level of authority.
These are as follows:
A. Program Approval
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 24 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
The approved annual operation plan of each subsequent year will be used as the basis for the
implementation of the program activities of all implementing units. The Annual Operational Plan
(AOP) will be approved by the Ministry of Health, Ministry of Economy and Finance, Pooled
Fund administrator (The World Bank) and other discrete donors or lenders by December of each
preceding year. The approval of AOP will constitute approval to proceed with all elements of the
AOP. The Health Sector Steering Committee will be responsible for monitoring the progresses.
The Pooled Fund Operation Unit Chief and Non-Pooled Fund Operations Unit Chief will be
responsible for coordinating approval of activities supported by the respective donors.
B. Request and Financial Approval
a.) Approval of Request
The Unit Chiefs (Pooled Fund and Non-pooled Fund) will be responsible for reviewing
compliance of activities, proposals, plans, purchase orders, contracts, agreements and Certificates
of Acceptance with legal documents (Loan and Grant Agreements) and other supporting
documents such as Program Implementation Plan (PIP) (if any), Program Appraisal Document
(PAD), Program Administration Memorandum (PAM) (if any), Reports and Recommendations
of the President of the Board of Directors on a Proposed Loan/Grant to the Kingdom of
Cambodia for the Second Health Sector Support Program (RRP), and other relevant documents
and recommend to the HSSP2 Coordinator and or Program Director for their decision.
The Financial Management Group (FMG) is responsible for reviewing budget, requests, plans
purchase orders, contracts, agreements and Certificate of Acceptance with the Program Financial
Management Policies and Guidelines and classifies them into budget categories of the loan and
grant agreements.
FMG shall keep records of approved budget, allocate funds and ensure that funds are available
upon actual needs.
b.) Financial Approval
The FMG is responsible for preparing payments and disbursements according to the approved
budget and terms and conditions of the contracts, agreements and financial/accounting
principles. The payments/disbursements will be approved by the Program Director and /or his
delegated person.
2.2.3 EXPENSE AUTHORISATION GUIDELINES
Approval/recommendations are required from the Heads
• Before a trip is made/assignment undertaken
• In order to request for cash advance, this should be release 5 working days before the
activity starts.
• Liquidation of expenses within ten working days after completion the activity.
• The next advance will not be paid until the first one was cleared.
Head who signed on the Cash Advance Liquidation is responsible for establishing and
confirming that the expenditures are:
• For official business, not personal
• Necessary for the operation/approved activities
• Reasonable in amount
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 25 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
• Within the budget line and work plan
• Supported by liquidation forms, and necessary receipts are attached
• Based on standard procedures
No employee has the authority to approve his own expenses or claims. Senior management
may permit the appropriate supervisor to authorize his or her advances and verify the
liquidation.
2.2.4 DELEGATION TO NATIONAL PROGRAMS
The official signatories of the cheque withdrawals of expenditure and other pertinent documents
for National Programs should be as follows
• -National Program Director (NPD)
• -Deputy National Program Director
The program should appoint one other authorised signatory and another alternate signatory. Two
signatories should sign on cheques transfers or withdrawals. .
The responsibilities of Accountant and Cashier should be clearly segregated.
2.2.5 DELEGATION TO PROVINCIAL HEALTH DEPARTMENTS
All local financial transactions incurred at the Provincial Health Department are the responsibility
of the Authorised Officers at the PHD (Director, Technical Officer and Accountant).
The official authorized signatories of the cheque withdrawals and other pertinent documents
shall be any two of the following:
- Provincial Health Director (PHD)
- Technical Officer
- Accountant
The signatory has responsibility to ensure proper accessibility of the fund transfer request and
reliability of the supporting documents. However for control purposes, there must two or three
authorised signatories. Two of them are to sign on the cheque.
The responsibilities of Accountant and Cashier should be clearly segregated.
* * * * * * * * *
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 26 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 3
ACCOUNTING
3.1 ACCOUNTING CONCEPTS
3.1.1 DOUBLE ENTRY
All financial transactions are prepared and recorded using Double Entry (for every Debit there is a
corresponding equal Credit).
3.1.2 CASH OR ACCRUAL BASED ACCOUNTING
All financial transactions shall be accounted for on Cash Based Accounting Policies. Under
which revenue are recognised when cash is received and expenses are recognised when cash is
paid and a limited range of Assets and Liabilities (Advances and Payables) are recognised,
recorded and reported in the notes to the Financial Reports and Statements.
When the modified cash basis of accounting is used by the program the Program Team must
disclose, in the notes to the financial statements, the accounting treatment of non-cash items
such as:
Assets and Liabilities such as receivables, payables, borrowings and other liabilities, non-cash
assets and accruing revenues and expenses
Commitments and contingent liabilities.
The basis of accounting, accounting standards and any additional financial accounting policies or
standards used by the program must be specified in the notes to the annual Financial Statements
of the Program.
3.1.3 CURRENCY EXCHANGE RATE
The standard currency used in recording program transactions is expressed in (US$) United
States dollars.
Any transaction in Riel or other currency must be converted to US dollars at the official exchange
rate of the day of the transaction that is declared by the National Bank of Cambodia (NBC) and
for balance sheet items carry in other currencies that the US$ shall be translated to US$ at the
rate of the reporting date declared by the NBC.
At the provincial and lower level, the exchange rate that will be used is the prevailing rate from
the local or nearest private commercial bank or NBC. This rate shall be used for any expenses or
any currency from the contributors expressed in Riel.
3.1.4 ACCOUNTING CYCLE
The accounting calendar that will be used by the program is Calendar Year (where January as the
first month and December as the last month) which also corresponds with the Cambodian fiscal
year.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 27 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
3.2 ACCOUNTING RECORDS
3.2.1 DOCUMENTS/SOURCE OF ORIGINAL ENTRY
Original documents shall be submitted (Invoices, Receipts, Shipment and Delivery along with
appropriate copies of quotations and purchase orders) and are attached to the relevant processing
vouchers. These transactions are recorded initially on the following basic documents of original
entry.
Receipt Voucher (RV)
Official Receipt (OR)
(Central / National Programs/ Provincial and Lower Level)
Receipt Voucher is sequentially pre-numbered and is used to document receipt of funds which
are banked or directly credited to the Program or implementing unit bank account.
RV is prepared as one copy for accounting (supported by appropriate documents like remittance
advice or bank credit advice). At Central level it is entered to Banking/Deposit Window of
Quickbooks.
(Central / National Programs/ Provincial and Lower Level)
Official Receipt is sequentially pre-numbered and used to document receipt of cash or cheques
(such as excess amounts from advances or other miscellaneous receipts).
OR is prepared in duplicate - one copy for payer and another copy for Accounting – shows the
relevant account code to be credited – and is supported by appropriate documents. It is signed by
the cashier and is approved by the authorised officer. At Central Level it is entered to
Banking/Deposit Window of Quickbooks.
Disbursement Voucher (DV)
(Central / National Programs/ Provincial and Lower Level)
Cheque Payment Voucher used to record a payment transaction where the mode of payment is
by Cheque or Transfer drawn on the Programs’ bank account. It is prepared in duplicate and is
supported by appropriate documents. DV is recorded using Payment Window of QuickBooks
Software.
General Journal Vouchers (JV)
(Central / National Programs/ Provincial and Lower Level)
General Journal Voucher is used to record transactions where there are no actual receipt or
disbursement of funds. It is commonly used to record necessary adjustments, corrections,
reclassification, amortizations, prepayments, settlement of cash advances and inter-office account
transactions.
This is prepared in single copy, and should be supported by appropriate documents.
GJV is recorded under General Journal Entry Window of Quick Books Software.
General Journal Voucher is also used to record non-cash transactions such as direct payment and
commitment letters. It is based on the Journal Voucher (JV) and entries are posted directly to
Quickbooks indicating JV under the REF column and the JV no in the Particulars column for
future reference.
Request for Advance Form (ROA)
(Central / National Programs/ Provincial and Lower Level)
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 28 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Request for Advance form is used to record properly approved cash advances. This is attached to
the Cheque Payment Voucher if Cash advance is more than $500, to the Petty Cash Fund
Voucher if Cash advance is less than $500. The Advance must be approved by the authorised
person (See Section 7 – Advances)
Reconciliation of Amount Advanced Form (RAA)
This form must be properly filled by indicating the date of advance, Cash Advance form number,
date settlement was made and the balance should be indicated. An Official Receipt should be
issued for any return of cash advance and a Disbursement Voucher or Petty Cash Voucher for
payment of the balance.
Petty Cash Payment Voucher (PCPV)
Purchase Order (PO)
(Central / National Programs/ Provincial and Lower Level)
Petty Cash Voucher is used to record payment of transactions by Cash of small expenditures of
the Program for a transaction below US$ 500. All necessary supporting documents are attached.
Payment is from the petty cash fund.
PO is used to record official orders of goods to suppliers and contractors.
Statement of Expenditure (SOE)
Statement of Expenditure is used to claim reimbursement or replenishment to the Designated or
First Generation Imprest Account or Program Advance/Second Generation Imprest Accounts.
Application for Direct Payment
Direct Payment refers to payments of large amounts direct from the Pooled Fund (World Bank),
other discrete Funds or RGC and follows the procedures in the WB Disbursement Letter,
Discrete Fund Disbursement Handbook, and RGC SOP respectively. Once payment is made and
advised details are recorded on a Journal Voucher which is entered directly into Quickbooks.
3.2.2 BOOKS OF ACCOUNT
Bank Register
These are control books used to control and monitor funds and transactions.
(Central / National Programs/ Provincial and Lower Level)
The Bank Register is used to control receipts and payments by cheque or transfer for the
program. It is kept on a pre-formatted MS Excel Spreadsheet with a pre-formatted Bank
Reconciliation following the entries. To effectively monitor bank position, the Bank Register
should be updated daily by the Accountant.
1. Enter Receipt to the Bank Register using the “Receipt” section.
2. Enter all Expenses / Disbursement Voucher amounts to the “Payments” section.
3. Determine if there are Journal Voucher entries which affect cash. If there are, enter the
amounts affecting the bank.
4. Compute the running cash balance which should be indicated under “Bank Balance” column.
5. See Procedures for Bank Reconciliation.
Note: At the Central Level transactions are entered directly to Quickbooks ledger and the audit trail forms the
Cash Book. The Bank Reconciliation is performed within Quickbooks
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 29 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Petty Cash Book
Petty Cash Register
Advance Register
(Central / National Programs/ Provincial and Lower Level)
The Petty Cash Book is used to control receipts and payments by cash for the program. It is
usually kept on a pre-formatted MS Excel Spreadsheet. To effectively monitor cash position, the
Petty Cash Book should be updated daily by the Cashier.
1. Enter Receipt RV/OR to the Petty Cash Book under the “Receipt” column.
2. Enter all Expenses / Disbursement Voucher amounts to the Petty Cash Book column
“Payments”.
3. Determine if there are Journal Voucher entries which affect cash. If there are, enter the
amounts affecting the bank to the appropriate columns.
4. For each entry in the cashbook, compute the running cash balance which should be indicated
under “Cash Balance” column.
5. After entering all cash related transactions, the “Cash Balance “ amount should equal to the
total cash funds on hand.
6. See Procedures for Cash Reconciliation;
7. In the event that the Cashier goes on leave, a hand-over of funds is usually necessary. Fund
accountability is determined by using Cashbook updated to the last transaction at the time of
hand-over and Cash reconciliation is prepared.
(Central / National Programs/ Provincial and Lower Level)
The Petty Cash Register is prepared using a pre-formatted MS Excel spreadsheet and is
used to report and control petty cash payments (minor expenditures by cash) .This Petty Cash
Register should be prepared monthly from the Petty Cash Book by the Cashier.
1. Enter official receipt of petty cash fund replenishment check or cash to the “Debit” column,
and the running balance is calculated under “Balance” column.
2. Enter all Petty Cash Payment Voucher amounts to the “Credit” column:” and the running
balance is calculated under “Balance” column..
3. For each entry in the petty cashbook, compute the running cash balance which should be
indicated under “Balance” column.
4. After posting all cash related transactions, the “Cash Balance “amount should be equal to the
total cash on hand available for the day.
5. See Procedures for Cash Reconciliation
6. In the event that the Cashier goes on leave, a hand-over of funds is usually necessary. Fund
accountability is determined by using Petty Cashbook updated to the last transaction at the
time of hand-over.
(Central / National Programs/ Provincial and Lower Level)
This book is used for Control of Advances. Advances given and settlement details should be
recorded in the Advance Register. At the end of the month, all outstanding cash advance are
listed and the accountant should check and recover overdue advances.
Logbook for Fixed Asset
(Central / National Programs/ Provincial and Lower Level)
See Section 5 – Paragraph 5.3 Fixed Asset Register Format
Logbook for incoming and outgoing financial documents
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 30 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
(Central / National Programs/ Provincial and Lower Level)
General Ledger (GL)
(Central / National Programs/ Provincial and Lower Level)
Trial balance (TB)
(Central / National Programs/ Provincial and Lower Level)
Trial Balance is printed out or displayed from Quickbooks after the completion of entries. It
shows a summary of Program transactions for the particular period. Debit and Credit Balance
totals should be equal.
Quarterly Interim (Unaudited)Financial Reports (IFRs)
(Prepared by Central Level)
IFRs will account for the use of funds, at an aggregate level, to the Development Partners (DPs)
and MOH, and reconcile the balance in the pooled account and provide the cash Programion
report for the following two quarters. In addition to the summary reports the IFRs could, at the
request of the World Bank, include statements of transactions which will provide the level of
detail normally associated with transaction-based disbursement. IFRs shall be prepared quarterly
and must be submitted within 45 days of the end of the quarter. They are a summary of the
financial and procurement transactions for the quarter. Cash flow forecasts will be an integral part
of the quarterly IFRs. The audited IFRs must be submitted not later than 90 days following the
quarter, which will be the conditional for replenishment of the next quarterly IFRs.
Monthly Financial Reports (MFR)
(Central, Provincial, National Program Level)
Monthly Financial Reports are prepared by the respective Implementing Agencies, Monthly and
must be submitted to the FMG within 15 days of the end of the month. They are a summary of
the financial and procurement transactions for the month for whole operation of the
Implementing Agencies (Including cash flow forecasts for the following two months)
3.2.3 CHARTS OF ACCOUNTS
The program has adopted standard chart of accounts for all components managed by the HSSP.
This standard Chart of Accounts should be used at the Central, National Program and Provincial
Levels.
The Chart of Accounts must be approved by the Program Director.
Chart of Account is a series of Account Codes used to show the program’s transactions. There
are 7 digits and 2 dashes in the account codes. This chart of accounts can also be used by the
national program and provincial level.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 31 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
3.2.4 FORMAT OF CHART OF ACCOUNTS
Ist 2nd 3rd 4th 5th 6th 7th
Descriptions of Chart of Accounts
1st Digit = Account type code-
Pooled Account/Non-Pooled Account
1xxxxxx= Bank/Cash;
2xxxxxx=Account Receivable/Advances;
3xxxxxx=Other Assets
4xxxxxx= Liabilities
5xxxxxx= Income
6xxxxxx=Expenditure
For the example expenditures code to use in Quickbooks entry
1st Digit = Account Type (6xxxxxx is represented for expenditures)
2nd Digit = Component code
For example:
1 represents component #1, as Component A: Strengthening Health Service Delivery
2 represents as component #2, as Component B: Improving Health Financing
3 represents as component #3, as Component C: Strengthening Human Resources
4 represents as component # 4, as Component D: Strengthening Health System
Stewardship Functions
3rd Digit = Sub component code
For example,
Component 1 - 1 Sub Component A1: Service Delivery Grant and Contracting
(611xxxxx)
Component 1-2: Sub component A2: Strengthening health services management,
supervision and public health functions at provincial and district level; (612xxxxx)
4th and 5th Digit = Main Activities in the approved AOP
6th and 7th Digit = Sub activities in the approved AOP (if any)
3.2.5 TRANSACTION REFERENCES - QUICKBOOKS
Class List, Cost or Disbursement Sources of Fund shall be set up in order to generate the report
such as “Profit and Loss by Sources of Fund” for example:
1 represents Pooled Funds,
2 represents Discrete Fund 1, (eg. UNFPA)
3 represents Discrete Fund 2,
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 32 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
4 represents Discrete Fund 3,
5 represents RGC contribution for Pooled Fund,
6 represents RGC contribution for discrete fund 1, 2, 3.
Sub Class List ; Cost or Disbursement Category shall be set up in order to generate report such
as “Profit and Loss by Cost Category” for example:
1. represents SDG
2. represent HEF
3. represent MBPI
4. represent Goods/Works/Training/Operating Cost etc..
Customer Job List represents the MoH Departments, National Programs, Provinces (District or
Commune) for which the expenditure has been allocated.
(Please see in the flow chart (Annex-2.15): The mechanism of recording expenditures in Quickbooks program)
3.3 BUDGET LINE OF EXPENDITURES
Budget lines of expenditure can be recorded under Budget window of QuickBooks. The initial
step is to enter budget line of expenditures under Budget window. Then, every expenditures that
is being recorded under payment window of QuickBooks, there will be also simultaneous posting
of that particular expenditure under the corresponding budget line of that certain expenditures.
However at this stage it is more practical to enter the budgets into an MS Excel Spreadsheet,
export the actual transactions from Quickbooks for comparison with the budget.
See also section – Budgets and Planning
3.4 COMPUTERISED ACCOUNTING SYSTEM
3.4.1 INTERNAL CONTROLS AUTOMATED DATA
o
o
o
o
o
o
o
o
An appropriate segregation of duties is maintained within the data processing function for
system development (design and programming), technical support (maintenance of
systems software), and operations.
Controls are established over completeness and accuracy of input, processing and output
and for error correction of incorrect or rejected transactions.
Controls are established over entry of data in on-line systems to restrict access to terminals
and data entry to authorised employees.
Password security should be established and registered on an individualised basis. The
change of password has to make monthly basis...
User controls include user reconciliation of output totals to input totals for all data
submitted, internal reconciliation of file balances, and the review of outputs for
reasonableness.
Controls are established over the use and retention of computer files, including provisions
for retention of adequate records to provide backup capabilities (including external
storage of backups).;
Controls are exercised over changes to system software.
Controls are in place which safeguard and limit access to computers, disks, files, system
documentation, and application program documentation to authorised employees.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 33 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
o A written and tested contingency plan is in place providing for continued processing of
critical applications in the event of a disaster to the computer;
o Controls are established for the use and contents of personal computers.
3.4.2 QUICKBOOKS ACCOUNTING SYSTEM
QuickBooks Accounting Software is the standard software that will be used by the program in
order to provide reliable timely financial information for the operation of the program using
simple input and report windows.
Detailed procedures for setting up and using QuickBooks Software can be found on the Help
Screen.
3.4.3 PROCESSING ENTRIES IN QUICKBOOKS
Receipts
Post Receipts to Banking/Making Deposit Window of QuickBooks::
“Deposit to” = name of bank account you want to record the deposit (for example the 1 st
amount of credit from the 1 st development grant to deposit to NBC/IDA/SA grant account
from the chart of accounts..
“Date” = actual date of receipt of fund (select from pop-up calendar;.
“Received from” = name of the payer / source of receipt (e.g. DFID);.
“From Account” = account number or name to be credited from Chart of Accounts
“Memo” = description of transaction.
“Check No” = Receipt Voucher Number
“Payment Method” = method used for payment (e.g. fund transfer or cheque), “Customer Job
list” = program outlet/provincial /national program
“Class” = Source of Fund/Cost Category.
“Amount” = actual amount received.
Click Save/New for more than one transaction and to proceed to new transaction. Click
Save/Close to complete single transaction.
Disbursements / Payments
Bank Register
Go to “Banking/Write Check” Window of QuickBooks.
“Bank Account” = bank account used, (e.g Pooled/Non-Pooled Discrete/RGC);
“Check Number” = sequential cheque number to be issued;
“Date” = select from pop-up calendar the date of transaction;
“Payee” = name of the supplier or contractor payee
“Amount” = actual amount;
“Memo” = description of transaction.
“From Account” applicable account number or title from Chart of Accounts,
“Job List” = location of provinces, national programs outlets
“Class list” = Source of Fund
“Sub Class List = Cost category
Click Save/New to go to a new transaction or
Click Save/Close. to complete the transaction
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 34 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
in QuickBooks under Banking Window
After posting entries under banking window, QuickBooks can generate Bank Register indicating
the balances after posting all the entries. The balance indicated in this register should equal to the
control totals or Bank Statement.
Journal
General Ledger
Trial Balance
Entered Vouchers
General Journal Entry Window of QuickBooks
“Date” = actual date of transaction from the pop-up calendar.
“Journal Entry No” = automatically assigns a sequential number to the journal entry.
“From Account” = the debit account code or title from the Chart of Accounts
“Received from” column, indicate the source of transaction
“Debit” = the amount of debit entry
“From Account” = the credit account code or title entry from the chart of accounts
“Credit” = amount of credit entry
“Memo” = description of the transaction.
“Class List” = the cost category
“Customer Job List” = location (Province or National Program)
Click Save/New to go to a new transaction or
Click Save/Close. to complete the transaction
Report Window of QuickBooks select General Ledger and General Ledger accounts will appear
in the screen automatically. This can then be printed if you wish.
Report Window of QuickBooks select Trial Balance and Trial Balance will appear in the screen.
If you want to make some comparison or analysis of accounts, select “Excel” command and the
report will be exported to MS Excel spreadsheet.
Each voucher shall be immediately stamped “ENTERED” or “POSTED” after it is entered into
Quickbooks (Central) or MS Excel (Provinces & Programs).
3.4.4 ACCOUNTING IN PROVINCES AND NATIONAL PROGRAMS
Provincial and National Program Office accounting is undertaken manually using MS Excel
spreadsheet.
Daily transactions are recorded in the pre-defined spreadsheets. At the end of every month the
end-of-month statements and copies of the spreadsheets are sent to HQ. Supporting
documentation is filed at the Field Office. All the transactions are posted to Quickbooks by the
Central Office.
Accounting software that being used by the central office will be phased out to provincial and
below level in early stage of the program implementation (starting with the SDG provinces) to
enable them to handle the enormous transactions more accurate and efficient.
Password, Storage, Backup and Virus Protection procedures should be followed in the Provinces
and National Programs.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 35 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
3.4.5 COMPUTER MAINTENANCE
Password Security
Storage of Data
Virus Protection
Backup of Data
Access to all HSSP Computers at ALL LOCATIONS is to be protected by using a password.
This restricts access to the only person(s) entitled to see and use the information. It also prevents
the possibility of accidental loss of data.
See Section 16 Filing and Archives for the correct method of storing records on the computer.
Reliable Virus Protection programs should be installed and REGULARLY UPDATED on every
computer used in the program.
The local Administrator should take separate MONTHLY, WEEKLY and DAILY backup of all
files onto removable media (CD, Zip disk etc.) and these backups should be stored in a safe place
preferably at a separate location.
Emergency Precautions
Electrical systems supporting IT equipment should have an appropriate Uninterrupted Power
Supply (UPS) system in place complete with backup batteries.
*********
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 36 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 4
PLANNING & BUDGETS
4.1 BUDGET & PLANNING PROCESS
Budgeting is the process of estimating the financial requirements of the program, identifying
sources of funds and adopting measures to ensure that such funds are made available on time.
Budgeting continues throughout the life of the program.
A Budget is a detailed plan for the use and management of funds and resources to fulfil the
objects and activities of the program. It represents a working plan for the future expressed in
formal quantitative terms. It is an essential management tool that communicates management’s
plan throughout the whole program, allocating resources and coordinating activities.
4.1.1 PROGRAM APPRAISAL DOCUMENT (PAD)
After approval of the overall budget for the program, there will be a memorandum of
understanding and agreement issued as to the agreed implementation of the Program.
Implementation will be broken down into five years (or the length of the program if less than 5
years) showing all the Program activities that will be implemented for each particular year. This is
approved by MEF and the respective DPs or Lender. This is the Logical Framework of how
funds of the Program will be utilized in accordance with the coordinated activities of the
program.
The Program Appraisal Document (PAD) forms part of the loan/credit/grant agreement for a
Program and contains cost tables which show the total planned expenditures and revenues for
the Program and a breakdown of these budgets by components and expenditures and revenue
type.
The flow of funds for Programs from the development Partners to the RGC is be specified in the
Program Appraisal Document (PAD) and in the Loan/Credit/grant Agreements of the Program.
Funds flows within the HSSP are also specified in the PAD. Any variation to the endorsed flow
of funds must be agreed by the HSSP (Program Team), MEF and the development Partners
prior to implementation. As part of the funds flow, the bank account requirements of the
Program must be specified and agreed prior to the implementation of the Program.
4.1.2 APPROVED BUDGET AND ANNUAL OPERATING PLAN
Funds will be utilized in accordance to an Approved Budget and Annual Operating Plan (AOP).
This is the basis for implementation of all Program objectives and activities for the year.
The Program Team (HSSP) prepares an annual work plan (AOP) and annual budgets. The
Program’s budgets must be based on the AOP. The Annual Operating Plan and the Budget set
the expenditure allocations and revenue targets for the Program components for the year.
The annual work plan and budgets require the approval of the Program Director, and Program
Steering Committee (if applicable). After approval, the annual work plan and budgets are
submitted to the MEF and the DPs or Lender for approval and endorsement.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 37 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Budgets should be revised whenever there are major changes or variations in the annual work
plans or overall Program plans. Approved variations or revisions of the annual work plans or
budgets must be promptly advised to the MEF and the DPs or Lender for approval and
endorsement.
Annual Operational Plan (AOP)
Annual Budget
Annual Operational Plan (AOP) sets out annual detailed activities and technical operations of the
Program broken down into components and cost category. This forms the basis for
implementation of the Program activities and how funds will be utilised.
The AOP is prepared in accordance to HSP2. It consists of different program activities of the
Program that will be implemented for each year of the Program.
Budget Program consists of detailed eligible expenditures that will be incurred in the program
activities of the Program based on the Program Implementation Plan. This is prepared in
accordance to the budget format and activity plan which specifies inputs such as personnel,
activities and facilities for each year. The costs of the inputs are calculated and recorded on the
Program Budget Drafting Form following these procedures:
a- Calculate the cost of each input in US Dollar at current rate of exchange if the inputs
envisaged are in a different currencies.
b- Allocate the inputs from the worksheet to the appropriate budget lines in the program
budget drafting form.
c- Include as contingency 10% of the total budget.
d- Calculate the total program budget and the distribution over the period of the number
of months and quarters should be calculated and the total reconciled with the
approved budget.
e- Budget lines, if required, shall be expanded to show separate sub-categories under
single budget lines. The principle to be considered in applying sub-categories is that
the monitoring purposes adequate budget shall be added and two separate activities
should not share the same budget line as in the example below:
310 International Expert
311 Expert A
312 Expert B
313 Expert C
400 Training
410 Local Training
411 Tuition
412 Travel
413 Accommodation
420 International Training
421 Tuition
422 Travel
423 Accommodation
f- The activity code will be mapped to carter in the chart of account in order to produce
the meaningful report for subsequent monitoring.
National Budget & AOP Preparation
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 38 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
The HSSP Annual Operating Plan (AOP) and Budget are amalgamated into the Annual
Operating Plan (AOP) for the Health Sector. The AOP for the sector is formulated by the
Department of Planning and Health Information (DPHI) of MoH (in consultation with all HSSP
units). This AOP is then costed into a Health Budget and submitted for approval of Ministry of
Economy and Finance and subsequently the National Assembly.
Budget & AOP for National Programs & PHD’s
This Annual Budget for National Program and Provincial levels are prepared by the team at the
National Program or PHD (normally the Accountant and Technical Bureau). This is prepared
according to the planning manual of the Ministry of Health. Once completed it is submitted to
FMG for inclusion in the overall budget of the Program.
4.1.3 BUDGET APPROVAL
a) The Program Steering Committee (PSC) will be responsible for providing over all guidance in
the implementation of the Program, including reviewing and approving of the Annual
Operational Plans (AOPs) and Budgets.
b) The Department of the Budget and Finance (DBF) of the Ministry of Health and the leader of
the Financial Management Group are responsible for preparation of the AOP and cash
forecast to submit to the Program Director and on to the PSC
c) The Program Implementing Units prepare the integrated budget plan on the date scheduled
by the Program. If there are revisions, necessary adjustment shall be made on the budget
before submission to HSSP. The leader of the Financial Management Group is responsible for
preliminary scanning of the budget before forwarding the budget plans to the DBF.
d) The approved budget shall be entered into the financial management system and also
recorded using the Program Budget Drafting Form.
e) Subsequent increased funds required by the Program will require budget revisions to be made
to the original loans or grant agreements and approved by PSC, MEF and the DPs or lender.
4.1.4 DISBURSING APPROVED BUDGETS
After the budget is approved, the HSSP and Implementing Unit will enter into an agreement.
The HSSP will then disburse funds within 10 working days after signing the agreement. Any
individual procurement of goods or services held by the Procurement Group or HSSP Secretariat
shall be pre-approved by the Program Director or Program Coordinator.
Disbursement of funds from UNICEF and UNFPA discrete accounts will be based on
Harmonized Approaches to Cash Transfers (HACT) procedures, using standard Funding
Authorization and Certification of Expenditures (FACE) form or acceptable equivalent
(UNICEF able to provide sample).
4.2 CASH FLOW BUDGETING
Cash flow budgeting is a critical element of ensuring that funds are available when required by
executing agencies. Cash flow budgeting involves estimating the amount and timing of payments
for expenditures and of receipts for revenues. The estimate should be based on the estimated
physical progress of activities and estimated timing of the related contract/operational
expenditure claims and/or receipts.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 39 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Each month the cash flow estimates for counterpart funds requirements must be reviewed and
updated. Any changes to the cash flow budgets must be advised to the MEF to help ensure that
counterpart funds are available when required. It is imperative that the cash flow requirements
for Program activities are clearly communicated to the MEF, so as to ensure regular and timely
cash flow is available for Program implementation activities.
4.3 BUDGET MONITORING
4.3.1 QUARTERLY INTERIM (UNAUDITED) FINANCIAL REPORT (IFRS)
IFRs are based on the actual results of expenditures compared with the budgeted amounts.
Variances are calculated. Quarterly Progress Reports (see Annex) show the progress of the planned
(budgeted) Program activities for the three consecutive months. The actual amounts are extracted
from the books of the financial accounts and compared with the budgeted amounts.
This report is cascaded down to be prepared on a monthly basis by the National Programs;
PHD’s and Central Office and is submitted to FMG on the agreed date (WITHIN 15 DAYS OF
THE END OF THE MONTH). The Financial Management Group consolidates all the
Financial Management Reports submitted by National Programs, Provinces and Central Office.
Please see IFRs reporting format in (Annex B 1.1 to B1.22 )
4.3.2 BUDGET VARIANCES
Any significant (over spending by more than 10%) Variance as a result of Budget and Actual
Expenditures should be explained in detailed manner. Any remedies or solution to the variance
shall also be described and properly explained.
*********
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 40 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 5
NON-MONETARY ASSETS
5.1 DEFINITION
Non-Monetary Assets include Fixed Assets and Inventory while it excludes cash, currency or
cheques.
5.2 FIXED ASSETS
5.2.1 CAPITALISATION POLICY
Fixed Assets are furniture, equipment and vehicles intended to be used in the implementation of
the Program. Fixed Assets are set to have a useful life of more than one year and costing Two
Hundred US Dollars ($US200) or more. Items costing below $200 are considered
consumables (refer FMM, SOP & Agreements).
5.2.2 ASSET GROUPS
Assets are grouped according to their nature and depreciation rate using a 3 character code (e.g.
VEH = Motor Vehicles).
5.2.3 ACQUISITION COST
The acquisition costs includes, not only the cost price or the value of assets contributed “in-kind”
but also includes freight, in-transit insurance, storage, assembly, special foundations and testing to
ready the asset. These costs should all be part of the capitalised asset and absorbed into the asset
purchase price.
5.2.4 INSURANCE OF FIXED ASSETS
As far as possible, Fixed Assets should be insured with a reputable insurance company for loss
due to fire, theft or accidental damage.
5.3 FIXED ASSET REGISTER
The Fixed Asset Register must be maintained by every Program implementing level in order to
establish levels of control on the movement and disposal. Each capitalised asset should be
assigned an identification number code (included on the inventory stickers) in order to establish
ownership and accountability.
The register must be updated on a monthly basis with all fixed assets additions and disposal. This
is extracted from the Disbursement / Cash Book. It is prepared by the Accountant in Excel
spreadsheet. Format is as follows
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 41 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Class of
Asset
Asset
Identification
Number
Description
Specifications
Model# Serial# &
Country of Origin
Fixed Asset Register
Purchase
Date
DV
Reference
Cost (US$) Link
to General Ledger
Location User &
Condition
5.4 DISPOSAL POLICY
All users of fixed assets must report any unused fixed assets considered for disposal, to the
Financial Management Group to inform them to review and consider disposal if necessary.
Disposal form shall be prepared and approved prior to recording adjustments in the Fixed
Assets Register and accounting records. This must be attached to the Journal Voucher for entry
into the General Journal (where necessary).
5.5 ACCOUNTING FOR FIXED ASSETS
5.5.1 PURCHASE OF FIXED ASSETS
• Purchase of assets shall only be made when the capital expenditure form has been approved.
• Capital expenditure request form shall be attached to the Disbursement Voucher.
• The cost is recognised as expenses when payment is made. The Fixed Assets Register is
maintained for monitoring and controlling purposes.
5.5.2 RECEIPT & ISSUE OF FIXED ASSETS
Purchase Receipt
Issuance Slip
Delivery Receipt
Purchase Receipt is a Program form which is required to be completed by the recipient of the
goods or services. Any assets received at Program premises shall be documented by preparing
this form. This Form is evidence of check of the quantity, existence of an item, specifications that
have been agreed upon and condition of assets that are delivered by the suppliers.
If goods are found to be damaged (or in a condition inconsistent with the Purchase Order) the
supplier will be notified immediately. The Purchase Receipt is prepared by the recipient and
checked by the Accountant. .
This is a counterpart of Receiving Report. After the receipt of goods these goods form part of
the Fixed Assets in the Program outlet. If these goods were requested by a unit or an officer then
they will be issued to the person or unit who will use the goods. Issuance Slip (IS) form shall be
used to document the release of the assets. This Form shall also be approved by the authorized
signatory. Security guard must inspect all items that are to be transferred from the Program to
another place or vice versa and properly recorded in the Log book.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 42 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Delivery receipt is prepared by the supplier and is signed by the person taking delivery. The
delivery receipt must be included with the documentation attached to the Disbursement
Voucher.
5.5.3 PHYSICAL COUNT OF FIXED ASSETS
Reconciliation
The Program must carry out periodic physical count of Fixed Assets like equipment, fixtures,
furniture, tools, in order to ensure that all assets are properly accounted and to determine any
damage or losses. Tags are checked to ensure that all items are properly tagged and items are
checked against the Fixed Assets Register listing.
This shall be conducted locally TWICE A YEAR, prepared by the Accountant and approved by
the PHD/NP Director or the Program Manager.
A member of the Financial Management Group shall carry out a Physical verification at each
outlet at least ONCE EVERY YEAR.
Surprise count shall also be performed depending on the circumstances.
The Fixed Assets Register is printed out and the physical count is marked off against the Register
List. Any missing, damaged or obsolete shall be identified and reported to the Financial
Management Group.
Reconciliation is prepared and a record of the count is retained to be made available to the
auditors for checking.
Reconciliation shall be performed between the actual quantities counted and the quantities shown
in the Fixed Assets Register. Any differences arising from the reconciliation shall be investigated
and be reported to the leader of the Financial Management Group.
General Ledger must be periodically checked against the Fixed Assets Register at least in every
semester.
The person who has conducted the physical count must sign on the physical count list as
evidence of counting. After the counting they must prepare Fixed Asset Physical Count Summary
which should consist of the following information:
Date of Count
Asset name
Asset code
Location
Quantity
Direct Users
Remarks for any unusual items or condition of the asset
Any missing, damaged or obsolete assets shall be identified and must be reported to the
management immediately. Only with management approval, accounting records and the asset
register should be amended.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 43 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Filing
The Financial Management group is given a copy of the reconciliation. The list and reconciliation
should be retained at the unit for safe keeping and audit.
5.5.4 INVENTORY STICKERS / TAGGING SYSTEM
Fixed assets should be stamped with the inventory stickers in a safe prominent place indicating
the following:
• Program + Grant/Loan Number (Source)
• Type of assets
• Name of direct users
• Location of the assets
• Identification number
5.5.5 DEPRECIATION
At this stage the Program does not use Accrual Based Accounting so Depreciation is not
calculated.
5.5.6 “IN KIND” CONTRIBUTIONS
The accounting system is obliged to provide values (theoretic “Cost Price) for analysis purpose of
equipment donated “free of charge” and technical assistance called “in-kind” contributions. The
cost of this “in-kind” donation is based on the cost to the DPs or, if that is not available, the
latest market value.
In-kind donations of fixed assets shall be recorded in the Assets Register module by the Financial
Management Group.
The supporting document for fixed assets donated in-kind by the DPs to support a journal entry
shall be as follows:
(a) Confirmation letter refers to the documentation showing what equipment is donated, the
package/consignment quantity, and individual fixed asset item contained within the
consignment.
(b) Price list shall be referred to the costs of individual fixed asset provided by the DPs.
(c) The Pro Forma invoice/price list shall be generated when the Price list is not available
from the DPs. The cost breakdown shall be based on the total costs indicated by the DPs
or the latest purchase price.
(d) Other documents shall be referred to further supporting documents from various DPs as
packing list, shipping consignment, etc.
5.6 INVENTORY OF CONSUMABLES
At this stage there is no requirement for Inventory records to be kept for consumables purchased
under HSSP2 program.
5.7 MEDICAL SUPPLIES AND PHARMACEUTICALS
Please refer to manual and guidelines on the distribution and management of medical supplies
and pharmaceuticals for both central and provincial level established by Central Medical Store
and NCHAD for more details.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 44 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 6
MONETARY ASSETS
6.1 DEFINITION
6.2 CASH
Monetary Assets includes Cash, Bank and Treasury
Adequate physical protection of the cash should be provided to prevent misappropriation and
theft of the funds;
The person receiving and holding cash (custodian) should not have access to the accounting
records;
All cash must be properly recorded (in and out) and kept in a safe or a vault.
Cash funds must not be used to cash cheques, exchange currency, pay personal expenses or to
provide personal advances;
Program staff should avoid as far as possible carrying or transporting large amounts of cash.
In the case of cash amounts exceeding US$1,000 adequate security measures must be
taken and if necessary a security guard should accompany the staff.
6.2.1 CASH LEVELS
Each implementing level shall maintain the maximum of US$1,000 as petty cash float. Cash shall
be count at balance on a regularly basis at least every month end and replenish it before the floats
run out in less than 20% of the limit.
The transport of cash, from the Central Office to Provinces and National Programs will be made
through bank transfer (where available).
6.2.2 CASH RECONCILIATION STATEMENT
Cash Reconciliation Statement is a statement showing the cash balance per petty cash book
reconciled against actual cash on hand. This is made by the Cashier and is checked by the
Accountant. This is supported by Cash Count. The Cash Count should be signed by the Cashier
and Accountant. The Cash Reconciliation is included in the Cash Register each month.
6.2.3 SAFE OR VAULT
For the proper safeguarding of cash on hand, the Accountant shall hold the key to the safe and
the Cashier holds the safe combination. The keys to the lockable box and vault or cabinet must
be kept in a secure place in the office.
6.3 PETTY CASH
6.3.1 INTERNAL CONTROLS - PETTY CASH
o Petty cash accounts are maintained on an imprest basis;
o Only minimal or necessary amounts of petty cash are kept.
o Responsibility for a petty cash account is vested in only one person.
o The Petty Cash Custodian should be a full-time employee who has no other
responsibilities associated with accounting, accounts verification or issuing cheques.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 45 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
o Cashiers are prohibited from cashing personal cheques and making unauthorised
advances;
o Original (no photocopies) receipts or vouchers bearing the signature of the payee support
all disbursements from petty cash accounts.
o Petty cash accounts are reconciled monthly by the cashier along with a person other than
the custodian.
o Surprise counts of petty cash are made periodically by a person other than the custodian.
6.3.2 ESTABLISHING PETTY CASH FUND
Petty Cash shall be established with a limit not to exceed US$1,000 with a maximum single
payment of US$500 for central level and US$ 200 for filed offices (National Programs, PHD,
and eligible ODs)
Procedural steps in Opening Petty Cash Fund:
1) The Accountant prepares a Request for opening a petty cash fund using the prescribed
form. The leader of the FMG checks the request and makes the appropriate
recommendation on the request.
2) The request should be approved by the Program Director or Program Coordinator.
3) The approved request will be forwarded to the Accountant for cheque preparation. After
approval of disbursement voucher the cheque shall be cashed by the custodian through
the bank.
4) The receipt of fund shall be automatically posted in the “Debit” column of Petty Cash
Book.
5) The entry in the General Ledger to record the establishment of petty cash fund is:
Dr. Petty cash fund xxxx
Cash in Bank
xxxx
6.3.3 PETTY CASH CONTROL
The petty cash advance cheque must be converted to cash and kept by the Custodian in a
lockable safe box in a locked vault.
The Accountant should make unannounced verifications (“spot checks”) of all petty cash funds
at irregular times (at least once a month) to assess the propriety of the transactions and to ensure
that the funds are adequately protected against loss or misuse. Either casher or accountant should
hold the key or combination code of the safe. No individual person who could hold both.
6.3.4 PETTY CASH CLAIMS
All expenditures should have the approval of the supervising officer responsible for the
budget.
A pre-sequential ordering numbered Petty Cash Payment Voucher (PCPV) (with
appropriate supporting documents) must be used for every payment from a petty cash fund
and for reference to record into a Petty Cash Book.
The payee must sign for the receipt of the payment and the Custodian must sign that the
payment has been made.
All receipts and/or vouchers that are submitted for reimbursement should be annotated
“paid” in a manner that will prevent their reuse.
If disbursements are infrequent, the Custodian should check the fund at least once a week and
verify that no differences occur.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 46 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
6.3.5 FUND REPLENISHMENT
The Custodian must reconcile the fund between the book balance and the physical cash and
submit the documented expenditures/receipts for authorisation.
The Custodian will be reimbursed with the amount of the expenditures claimed to return the
petty cash to its original level (maximum $US1, 000). It is replenished by cheque payable to the
Custodian. The Custodian should cash the cheque immediately at the bank, and place the cash
back in the petty cash fund.
6.3.6 PETTY CASH BOOK
Petty Cash Book (PCB) will be used to monitor and control petty cash. “The Receipt” column
will be used to record receipt of petty cash fund replenishment under “Payment” column will be
used to record daily petty cash vouchers.
PETTY CASH BOOK
Date Particulars/Description PCPV#/. Cheque # Debit Credit Balance
(Receipt) (Payment)
Aug Rec’d replenishment check$10001220 000211200 $1,000 $1,000
01,2003
Aug Office supplies for FMG, PR# 00021 $100 $ 900
04,2003
Transportation expenses 00022 $ 2 $ 998
6.3.7 CASH RECONCILIATION STATEMENT
Cash count should be performed by the Custodian on a daily basis and the Custodian/Cashier
and Accountant on a regular basis to reconcile the actual cash held against the petty cash book
balance. Any discrepancies between the cash balance counted and balance per cash book should
be investigated immediately and be reported to the FMG leader.
A Cash Count Sheet must be prepared and retained showing the actual date, time of count and
signed by the Accountant who has counted the cash and properly acknowledged by the Cashier.
• A DAILY cash count and reconciliation shall be carried out by the custodian/cashier to
reconcile with the Cash Book;
• A SURPRISE (unannounced) check should be made by the Accountant at least one other
time during the month.
• The Internal Auditor will carry out spot checking of the Cash Fund and Petty Cash managed
by Central and Field Offices at least once every 3 months.
6.3.8 FINANCIAL LOSS
The Cash Custodian’s supervisor shall commit the following action to the case of financial loss:
a) Prepare a narrative report and submit it to the leader of the Financial Management
Group describing the confirmed or suspected financial loss;
b) Discusses the financial loss with the Supervisor, Accountant or Finance Officer;
c) Follow up and add comments to the report;
d) Ensure confidentiality, especially in ‘suspected’ matters of financial loss.
e) Respond to the direction of the leader of the Financial Management Group.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 47 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
6.4 BANK ACCOUNTS
Credit and Grant effectiveness and the entitlement to withdraw for the expenditures incurred
must be in accordance with the legal provisions and conditions of the loan agreement.
Withdrawals can start only upon compliance with all conditions established by the DPs or lender.
The opening and operations of Bank Accounts should be approved by the Ministry of
Economics and Finance (MEF).
6.4.1 AUTHORISED SIGNATORIES
See Delegated Authorities – Section 2.
6.4.2 DESIGNATED ACCOUNT (DA) / FIRST GENERATION IMPREST ACCOUNT (FGIA)
Loan / Credit / Grant funds must be held in a separate Designated Account (for pooled funds)
and other separate bank account (called FGIA) for other financiers. These are Bank Accounts
held at the National Bank of Cambodia (for pooled and counterpart funds) and at any other
financial institutions as agreed by other financiers, must be used exclusively for the payment of
Program Expenditure as set out in the Loan / Credit or Grant Agreement. They are revolving
accounts funded with an advance from a bank loan or grant that can be used exclusively to cover
their share of eligible expenses in both local and foreign currencies. The Account will have an
authorised allocation or limit and an initial advance set out in the respective agreement.
The objective of this account is to help the Program overcome cash flow problems and speed
disbursements in the following ways.
• making funds readily available
• reducing time for processing payments
• reducing the number of withdrawal applications
• giving the borrower greater control of the payment information
Operation of DA/FGIA
• World Bank funds will be advanced into pooled account and commingled with fund from
other donors participating in the pool.
• The pooled and counterpart fund accounts will be opened at National Bank of Cambodia.
• The first advance for the pooled account will be for first six month expenditures from
pooling partners based on the approved AOP.
• Following the initial advances into the pooled account the pooled donors will replenish funds
based on the six months cash-flow projection report in quarterly IFRs by taking into account
the progress of the Program and opening funds balance.
• Discrete donor funds will also be advanced into separate bank account for each donor, which
will be opened at Financial Institution in Cambodia. The initial advance and subsequent
replenishment funds for discrete donors account will be followed as the same mechanism of
pooled funds account.
• The counterpart funds will follow the same mechanism as the pooled funds account.
• Based on related agreements/ internal contract /MOU, the fund will transfer from National
Bank of Cambodia to advance accounts at commercial bank for the national program,
provincial, and eligible ODs. The commercial bank should commit to provide reliable and
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 48 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
timely bank statements, adhering to acceptable business standards, low and reasonable
commissions and charges.
• The initial advance, equivalent to the estimated first three months’ worth of consolidated
budget expenditure at each location, will be disbursed by pooled, counterpart contribution
and discrete accounts held by MOH/HSSP secretariat to relevant national program,
provincial and eligible ODs’ advance accounts. Subsequent replenishment will be based on
the actual monthly consolidated expenditure report from the PHD and national program,
respectively.
6.4.3 ADVANCE ACCOUNT/SECOND GENERATION IMPREST ACCOUNT (SGIA)
• Advance Account/Second Generation Imprest Account (SGIA – Other) are maintained
for National Programs, PHDs and eligible ODs.
• The purpose of Advance/Second Generation Accounts is to have local access to funds on
an imprest basis. For example Advance/Second Generation Accounts shall be established
each for Malaria and Tuberculosis. The funds are managed by these programs or
provinces, but the flow of funds is monitored by FMG. That disburses from the main
DA/FGIA.
The Program has selected ACLEDA Bank as the official commercial bank for SGIA. The
purpose is to have fast and easy access to Program funds avoiding delays in
implementation of the Program. Arrangements for opening an account will be to choose
the nearest branch. The account opened is to be called Advance Account or SGIA. The
requisites in the selection of the bank, the bank should have the capacity to handle large
transactions promptly and be able to perform a wide range of banking services
satisfactorily, be financially sound, be audited regularly, and receive satisfactory audit
reports, be able to provide detailed statement of the accounts, be part of a satisfactory
correspondent banking network, and charge reasonable fees for its services.
The currency to be used is US$.
Program payments to a supplier for more than 20% of the initial advance to the SGIA
cannot be made from the SGIA – Commitment or Direct Payment procedures must be
used.
Expenditures incurred for Program activities by all Implementing Units shall be in the
form of Cheque only except petty cash fund expenditures (under US$500).
The details procedure of PHD and below level accounting system for Pooled fund,
counterpart funds and discrete donors funds are showing in Section 18
Withdrawals from Advance Accounts
The PHD is obliged to ensure that the utilisations of funds at PHD and below level are accordance to
Annual Operational Plan. These have agreed upon on the memorandum of agreement (or
management agreement) and respective contract agreements established by the Program and PHD,
PHD and OD, PHD and Provincial Referral Hospital (PRH)
• Withdrawals of funds should be on the basis of appropriate and reliable documents.
• The transfer of funds to the Provincial Advance Account/Operational District Advance
Account/PRH Advance Account is on a replenishment basis.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 49 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
• The expenditures that will be incurred by the Program activities at the implementing unit shall be
in the form of Cheque only except petty cash fund expenditures (below $200)
Replenishment/Liquidation of Advance Account
Replenishments will be based on the SOE and its supporting documents. SOE is prepared by
Finance Officer at National Programs and PHDs( consolidating for the whole provinces). This is
submitted by the Accountant at the FMG central office on a monthly basis.
The supporting documents are as follows
Withdrawal Application
Statement of Expenditures
Statement for source and use of funds
SGIA/Advance Account Reconciliation Statement
Petty Cash Register, with reconciliation
Cash Count Sheet
Bank Register, with bank reconciliation
Bank Statement
Advance Register
Budget Allocation Vs Actual by Components, Activity and Categories
Copy of Petty Cash Payment Voucher, Disbursement Voucher
Supporting documents shall be post checked cascading by the Finance Officer of the central
office Financial Management Group to the National Centre, PHD and selected ODs and
Provincial Hospital, by the Finance Officer of PHD to ODs/Provincial Hospital, and by the
Finance Officer of ODs to HCs/RHs.
6.4.4 COUNTERPART FUNDS PROGRAM BANK ACCOUNT
Separate Counterpart US$ Bank Accounts need to be maintained for Pooling Donors and Nonpooling
Donors for Counterpart contributions. The Counterpart Funds Bank Accounts must be
maintained by the HSSP at the National Bank of Cambodia or other approved financial
institution. Replenishment and withdrawal applications are made direct to the MEF when
approved funds are transferred from the RGC National Budget to the Counterpart Funds
Accounts.
6.4.5 BANK CONTROLS
Monitoring of Bank Balance
The Accountant should continually monitor the Bank Account Balance to ensure there are
enough funds to cover payments being made.
6.4.6 BANK RECONCILIATION
Bank Statements should be available to be collected monthly by the Accountant within the
first week of the following month.
The Bank Reconciliation is prepared by the Accountant at Central, Provincial or National
Program level. Each Bank Reconciliation must be checked and approved by one of the
authorised signatories of the bank account and is submitted to the Leader of the FMG (at
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 50 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
central level) and chief of finance unit (at the respective field offices) to check, review and
sign.
The Bank Reconciliation is included with the Bank Register each month;
A copy of the Bank Reconciliation and the supporting documents must be retained (filed) for
management control and audit purposes.
A bank reconciliation statement shows the reconciliation between the bank balance shown in the
cash book and general ledger to the bank balance shown on the bank statement. Reconciliations
must be prepared for ALL accounts at least MONTHLY and be completed WITHIN 10 DAYS
of the end of the month.
All the transactions shown on the bank statement must be checked off to the cash receipts and
payment records. Immediate attention should be given to out of balance accounts, old and unreconciled
items. Some of the reconciling items are the following:
• Outstanding cheques - cheques recorded in the books but not yet presented to the bank
for payment.
• Deposit in transit- collections already recorded in the books but not yet credited by the
bank;
• Bank Service Charges or Fees - already debited by the bank but not yet recorded in the
books.
• Errors - determine the nature of the error and rectify.
Quickbooks Bank Reconciliation
Compare the deposits listed in the bank statement against entries in the Cash Book or the
Banking Window of QuickBooks. Put a check mark in the bank statement to indicate its
confirmation. If there are deposits that are not credited in the bank due to local clearing, adjust
the book balance. If there is interest credited or there are bank charges debited by the bank
prepare the necessary entries:
Dr Cash in bank
xxxx
Cr Interest Income
xxxx
Dr Bank Charges
xxxx
Cr Cash in Bank
xxxx
Compare each cheque issued against debit listing in the statement by putting a check mark to
indicate its confirmation. If there are cheques that are not found in the listing, they are
Outstanding (or Unpresented) cheques for the current month which are added back to the
balance per book. For the errors that appear determine the nature of the error and effect any
changes.
Designated Account Reconciliation
The Statement showing the total initial amount by the pooled donors in the Designated Account
as of given period and reconciled against the total amount of eligible expenditure that has spent
and replenished by the pooled donors. The amount of ending DA balance plus the total amount
of replenishment (from total amount of replenishment, this may include pending application if any) equals to
the initial advance amount by the pooled donors. This is supported by bank statements, cash
reconciliation statement and all approved applications for withdrawal as well as quarterly IFRs.
This is prepared by the Accountant, reviewed by the FMG Leader, and approved by the Program
Director.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 51 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Advance Bank Account Reconciliation
The Statement showing the total amount advanced from the DA to the separate advance bank
account of the field offices (i.e. the national programs, PHDs, and eligible ODs) as of given
period, and reconciled against the total amount of eligible expenditure that has been spent and
replenished from the DA. The amount of ending advance account balance plus the total amount
of replenishment (from total amount of replenishment, this may include pending replenishment if any) equals
to the ceiling advance amount from the DA. This is supported by the bank statements from
depository banks of provinces/district levels and Statement of Expenditures per Category and
activity. This is prepared and approved by Finance Officer and Director of the respective field
offices prior to submitting to the FMG of the central level for review and consolidate.
6.4.7 BANK ACCOUNT RESPONSIBILITIES
To effectively monitor the daily bank balances of all bank accounts and withdrawals a Cash
Position Book or Bank Register should be used and update by accountant of each office. This is
effective for cash management and gives information on the amount of funds credited by the
bank to the respective accounts and amount of all disbursements that have been paid/issued and
the related balance. This should be updated on a daily basis using an Excel spreadsheet or to the
computerized accounting software (Quickbook) where available.
6.4.8 CHEQUES
Cheque Books should be kept in a safe place. (In both central and field offices, the maintenance
of the cheque functions is responsible by the respective accountants of each office).
If a cheque needs to be cancelled it must be stamped “Cancelled” across the signatures and the
amount. It must be attached to its voucher or kept on file with the Cheque Book Journal.
No cheques can be drawn payable to cash or pre-signed. Petty Cash cheques should be made
payable to the name of the Cashier.
*********
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 52 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 7
ACCOUNTABLE ADVANCES
7.1 ADVANCES
This section refers to funds paid in advance for anticipated expenditures necessary for the
operation of the Program. These are initially and temporarily treated as Cash Advance for
Program accounting. Receipts and proof of expenses must be submitted before or within the
time frame. Any excess is refunded or any shortfall is paid (settlement or liquidation). Next
advances will not be made if the previous one is not yet liquidated and if long outstanding in
excess of 60 days, the advance can be recovered from the salaries of recipients at the next payroll
date and its subsequent until the full recovery is made.
Advances are controlled by Spreadsheets (Advance Control Book) at Central, National Program
Provincial and lower levels and are checked and reconciled with the General Ledger on a
regularly basis at least one at every month end.
7.1.1 REQUEST FOR ADVANCE FORM
Request for Cash Advance Form must be used to apply for and authorise cash advances. It
indicates the purpose, the amount and the due date. It is signed by the requesting party and by
the person approving the advance. It must be approved by properly delegated officers:
Program Director
Program Coordinator
PHD Director
National Program Director
Chief of OD
Director of Referral Hospital
7.1.2 LIMIT OF ADVANCES
Advances are given for
80% of the total per-diems;
90% of training workshop costs;
90% of Overseas Per Diems
90% of Other Expenditure;
100% of Remote Area Students, teacher/lecturer, tutors, preceptor such as midwifery
teachers and preceptors.
100% of Specific quoted and approved other expenditure
7.1.3 PROCEDURES FOR ADVANCES:
1. Cash advances are only allowed for official business transactions, not for personal use;
2. Cash advances must be authorised by the Supervisor and approved by the Program Director
based on the expense authorisation and approval limits;
3. Advances exceeding $500 must be specifically approved by the Program Director or Program
Manager;
4. No cash advance should be approved for any employee who has previously unsettled cash
advances.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 53 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
5. Cash advances shall be made within five (5) working days before the activity starts.
6. Cash advance should be settled or liquidated at once, or in the following time frame:
Provincial undertakings
two weeks after return from trip.
Phnom Penh area
Outside Cambodia
two weeks after return from trip.
two weeks after return from trip.
7. Any violation on this aspect shall be subject for disciplinary actions by the Administrative
Department.
7.1.4 SETTLEMENT OF ADVANCES
Cash advances shall be settled (or liquidated) by submitting a Reconciliation of Amount
Advanced Form to clear the Advance together with all the supporting receipts and other
documents for actual expenditures incurred and settling any balance between the amount
advanced and actual expenditures incurred. Reconciliation of Amount Advanced Form must be
properly filled by indicating the date of advances, Cash Advance form number, date the
settlement was made and the balance should be indicated. An Official Receipt should be issued
for any return of cash advance and a Disbursement Voucher or Petty Cash Voucher for payment
of the balance.
7.1.5 CONTROL OF ADVANCES
Advances given and settlement details should be recorded in an Advances Control Book or
Advance Register (see Annex A 2.10). This can be kept on MS Excel spreadsheet or manual
book. At the end of the month, all outstanding cash advance are listed and the accountant should
check the overdue advances.
7.1.6 RECOVERY OF ADVANCES
The Accountant should review the Advance Control Book on a monthly basis. Long outstanding
advances need to be followed-up immediately and if necessary recovered by payroll deduction.
If an employee is finishing work with HSSP, the Administration Section must check with the
Financial Management Group to establish if any advances need to be recovered from their final
salary.
*********
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 54 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 8
LIABILITIES & COMMITMENTS
8.1 DEFINITIONS
LIABILITIES are financial obligations or commitments to outside organizations and individuals
(i.e. Debts owing to others payable by HSSP).
Current Liabilities (Payable within 12 months) include –
o Accounts Payable (not used at present)
o Accruals (Not used at present)
o Non – Current Liabilities (Long Term – normally repayable over more than one year)
o Commitments
o Retention Monies
o Contingent Liabilities
8.2 COMMITMENT CONTROL
Commitment is a financial undertaking that is expected to result in a charge against a budget
item. Commitments may represent contractual liabilities (e.g. when a purchase order or contract
is issued), or may represent conditional liabilities that will require expenditures in the future if
certain conditions are met (e.g. when computer software is developed according to
specifications).
Future year commitments should only be established where it is considered essential to the
achievement of currently approved goals, or where it is not economically justifiable to enter into
a contractual arrangement that will be concluded by the end of the current budget year.
Recorded commitments must be adjusted when payments or contractual amendments are made
or the order is cancelled.
Commitments should be reviewed at least quarterly and their validity confirmed by appropriate
personnel in Procurement to confirm if any unfulfilled terms or conditions remain.
Commitments must be recorded on the form provided in the Financial Management Manual
(MEF) (please see the annex A 2.16.)
8.3 RETENTION MONIES
Retention money may be deducted from each payment made to a contractor. The arrangement
will be noted in the contract, but may be deducted only on the final contract payment or on each
progress payment in proportion to the relative size of each progress payment. Retention is
intended to act as a guarantee for the satisfactory completion of services or goods provided, and
this for a given period of time after the contract is completed. When this period has expired, the
retention money is returned to the contractor.
Retention moneys are recorded in the General Ledger, both as an asset and a liability of the
Project when they are withheld from the contractor’s payment.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 55 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
The entry in the General Ledger to record the retention is:
Dr
Expenditure
xxx
Retentions and Securities
xxx
Special Account
Counterpart Funds Contribution
Retention on Contracts
Cr
xxx
xxx
xxx
8.4 SUPPLIER ACCOUNTS
At this stage, supplier accounts are not recorded (accruals or payables) until they are paid.
8.5 CONTINGENT LIABILITIES
A contingent liability might be established to offset potential losses arising from threatened
litigation with respect to third party damages to persons or property. If the litigation is
unsuccessful, then the contingency fails. If the litigation is successful and the amount is
determined, then the debt is “crystallised”, and it becomes an account payable.
Contingent liabilities are not normally entered into HSSP accounting records until such time as
the details of the liability are confirmed and the amount is payable.
*********
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 56 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 9
RECEIPTS
9.1 DEFINITIONS
If the income is earned but payment has not been received, the amount is a Receivable (owing
to the Program) and once it is paid (by cash, cheque or bank transfer) it is a Receipt.
Advances to Program officers are also a Receivable (until such time as they are settled) but are
covered separately in Section 7 - Accountable Advances.
Program Receipts include:
o Donors Contributions (grant or credit);
o Counterpart Contributions
o Contract (Bid) Securities;
o Sale of Bid Documents;
o Interest (on money held in Bank and Investment Accounts);
o Disposal of Fixed Assets or sale of Stores;
o Refunds of expenses or advances overpaid.
Revenue items are entered into HSSP’s records when they are actually received.
9.2 RECEIPTS
9.2.1 INTERNAL CONTROLS - CASH RECEIPTS
o Receipts are pre-sequential order numbered and stored in a secure place;
o Official Receipt (OR) and Receipt Voucher (RV) must be issued promptly for receipt of
funds, other cash, cheque payments or transfers received from the DPs, lender or other
source;
o Segregation of duties in the handling of cash is one of the most effective ways to maintain
control over this asset. Specifically, no one individual’s duties should include the actual
handling of money, recording receipt of money, and the reconciliation of bank accounts.
No individual is to have complete control in the handling of cash.
o Employees handling cash are to be assigned duties that are complementary to or checked
by another employee.
o Effective controls are in place over miscellaneous receipts such as sales of scrap, disposals,
interest, donations & rents;
o All cash receipts should be endorsed for deposit only and be deposited intact in the bank
daily.
9.2.2 OFFICIAL RECEIPT (OR)
An Official Receipt is used for receipt of other cash items. The cashier fills out all the necessary
information and it is formally signed by the cashier as receipt and countersigned by the payer. This OR
should be sequentially pre-numbered.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 57 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
9.2.3 RECEIPT VOUCHER (RV)
The Receipt Voucher is used for receipt of fund from grant generally by transfer. The basis of
preparation of this RV is a credit advice from the bank. This pre-sequentially order numbered.
BRV is prepared by an Accountant and signed by an authorised signatory.
9.2.4 DOCUMENTS REQUIRED TO BE ATTACHED TO RECEIPTS
9.3 REVENUE
Transfer Receipts, Bank Remittance Slip, Bank Advice and Payers’ Advice are to be attached to
the receipts.
9.3.1 DPS OR LENDER CONTRIBUTIONS
DPs or Lender Contributions are usually detailed in an agreement between the DPs or Lender
with the HSSP. When contributions are received they are acknowledged, receipted and deposited
to the DPs or Lender’s nominated bank account.
9.3.2 OTHER INCOME
Sale of HSSP Fixed Assets or Stores, Sale of Bid document, Interest Earned and Contract/bid
securities.
Contract/Bid Securities are responsible by FMG for checking, keeping and recording. The
cheque guarantee or securities must be deposited into the bank account to ensure the validity.
Income from selling bid document, disposal of Fixed Assets must be issued by the acknowledged
Receipts. The earned items must be recorded in and the accounting system and deposited into
the specified bank account by FMG.
Refunds
Refunds from excess advances or to repay amounts to HSSP are receipted by OR and banked
promptly.
*********
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 58 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 10
EXPENDITURE & PAYMENTS
10.1 EXPENDITURE PROCESSING
Funds will be disbursed in six (6) ways:
• Petty Cash
• Cheque drawn on the Bank
• Money Transfer Form/MTO
• Cash Withdrawal Order/CWO
• Direct Payment (from Pooled /Non-pooled/counterpart )
• Commitment Letter
10.1.1 INTERNAL CONTROLS FOR GENERAL DISBURSEMENTS
o The responsibility for disbursement procedures is clearly documented and assigned to
specific personnel;
o Disbursements are handled in such a manner as to ensure that the proper funds and
accounts are charged; that the disbursement is used only for authorised purposes; and that
policies and procedures governing the disbursement are followed.
o Disbursement vouchers shall be in pre-sequential order numbered, any unused should
cross as cancelled.
o Name of the payee and fairness of price are checked before payment;
o Controls are established to assure that all payments are made on a timely basis and in
accordance with all purchase orders and contracts;
o Controls are established to ensure that duplicate payments are not made. Invoices are
stamped “Paid” at the time the cheque is signed;
o Original invoices (or authorised facsimiles), delivery dockets and purchase orders totalling
the amount of the disbursement are to be attached to each voucher before payment.
o Employee duties in the handling of disbursements are separated to the extent possible
with regard to:
a. The initiation of purchase requisitions and field orders.
b. The approval of vouchers, invoices, and warrant registers.
c. The preparation of warrants/cheques;
d. The mailing, delivery or handing of warrants/cheques;
e. The recording of disbursements.
o Each cash disbursement is properly vouched and approved by the proper authorities
before the actual disbursement occurs. This ensures proper and regular review of all
disbursements.
o To the extent possible, employee duties in this area are to be complementary to or
checked by another employee.
o Disbursements are to be made as far as possible by cheque. Counter signatures provide an
additional control.
o Blank cheques are to be kept in locked storage under the control of a designated,
responsible employee. Access to blank cheques is limited to this employee and a
designated alternate.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 59 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
o A separate record is maintained for each cheque issued or voided including the date
voided; inclusive serial numbers (if more than one cheque in a series is voided); quantity
voided; reason for voiding, and initials of individual taking action.
10.2 ACCOUNT VERIFICATION AND CERTIFICATION
10.2.1 CONTRACTS
Original copies of all contracts are to be forwarded to the Financial Management Group. Copies
are to be retained by the Procurement Section. Disbursements will be checked against the
purchase order, contract and work progress before payment.
10.2.2 VERIFICATION
The account verification process must ensure that:
a. The proper authority has ‘initiated’ the expenditure;
b. The price charged is in accordance with the contract or, if not specified in a contract
that it is a reasonable price;
c. Quantity ordered and delivered and quotation are checked against the delivery receipt
and invoice;
d. An authorised employee has signed to acknowledge receipt of the goods or services
rendered;
e. The amount claimed has not been paid previously in whole or in part;
f. Applicable discounts have been deducted, charges not payable have been eliminated
and computation of the amount payable is correct;
g. Compliance has been made with all HSSP standard operating procedures and other
directives that supersede this manual;
h. If an advance or progress payment is being made, the requirement should be provided
for in the related contractor agreement;
i. Complete and relevant documents supporting the payment (e.g. contract, purchase
order, deliver slip, invoice) are attached; and
j. The financial coding is completed and correct and the correct category, activity and
component have been allocated.
10.2.3 SUPPLIER’S ACCOUNTS
Supplier trade accounts for goods and services should be paid, as far as possible, within 30 days
and must be paid only on invoice (quotations cannot be used as invoices) and acceptance of
goods and services.
A supplier must be notified in writing within 15 working days if there is a problem with the
goods or services, or a problem with the invoice. The 30-day payment period begins upon the
receipt of the replacement goods or services, or the revised invoice.
If only some items on a multiple item invoice are in question, the portion of the invoice that is
not in dispute may be paid within the original 30-day period based on a request from the supplier
(verified by Procurement Section) explaining the reason for the delay.
10.2.4 PAYMENT TERMS
Each payment shall be paid within two weeks after its voucher is duly signed by an Authorised
Officer.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 60 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Unless otherwise agreed or specified, the latest due date for payment of a supplier’s account is 30
calendar days from the date that the goods or services are received in acceptable condition at
the location specified by the Program or the date the invoice is received in proper form,
whichever is later.
Payments or reimbursements cannot be made longer than 2 months after the obligations have
been fulfilled and the precise reason shall be provided in this case.
10.2.5 PAYEES
Payments must be made by cheque made payable to the shop, company or business name.
Where the supplier finds it impossible to collect their payment an Authorisation Letter must be
presented and attached to the payment. This Authorisation Letter must be approved by the
authorised officer.
10.2.6 SUPPORTING DOCUMENTS
The Finance Verifying Officer should check the required supporting documents during and
after voucher approval. A random check should be made when closing the month end before
submitting the final report and filing the vouchers.
10.3 NATIONAL PROGRAM EXPENDITURE
All the expenditures at the national program level shall be based on the Approved Budget and
Annual Operating Plan (AOP). Approved Budget is attached to the memorandum agreement
between the National Program Director (NPD) and the Program Director. Based on the
Agreement, the NPD has the over-all responsibility for the final execution and effective
implementation of the Program in the provinces. The Implementing Units of the provinces are
bound to comply with all written standard operating procedures of the Program particularly on
Financial Management. Likewise, utilization of funds will be allocated based on the approved and
eligible expenditures of the Program.
.
Fund Level
Limits Per
Payment
Verifications made by
Approval
Petty Cash Fund Below $200 Accountant National Program
Director or
Deputy NPD and
Technical Officer
Cheque Payment
Equal or
Above $200
Accountant/
Deputy NPD
National Program
Director and Deputy
NPD or National
Program Director and
Technical Officer
o No payment is to be made without an approved voucher;
o The overall approval authority is delegated to the National Program Director.
o For purpose of internal control, the Accountant is not allowed to approve the payments because
they have access in the funds and recording of the funds.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 61 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
o For “check and balance principle of internal control” there must at least two authorised
signatories, NPD should assign another authorized signatory of the checks and pertinent
documents specially in case he is not available of some important reasons. Two authorised
persons are to both sign cheques. And this procedure must be part of the terms and conditions
in the arrangement from the bank.
o The Accountant should check the Petty cash payment Voucher (PCPV) or DV before presenting
to NPD for approval. However in case NPD is on leave or sick or has official meeting outside
the province, the Deputy NPD is authorized to approve the PCPV. But subject for post checking
of the NPD by presenting the particular PCPV that Deputy NPD has signed whenever the NPD
is longer available.
o The Accountant should anticipate the availability of the NPD (e.g. 1 week meeting outside the
province) to sign cheques in order to avoid delay in the implementation of the Program activity.
10.4 PROVINCIAL EXPENDITURE
All the expenditures at the provincial and below levels shall be based on the Approved
Budget/signed internal contract and. Annual Operating Plan (AOP). Approved Budget is
attached to the memorandum of agreement between the Provincial Health Director and the
Program Director. Based on the Agreement, the PHD has the over-all responsibility for the final
execution and effective implementation of the Program in the provinces.
The Implementing Units of the provinces is bound to comply on all written standard operating
procedures of the Program particularly on Financial Management. Likewise, utilisation of funds
will be allocated based on the approved and eligible expenditures of the Program.
10.4.1 PAYMENT LIMITS (PROVINCIAL)
Fund Level
Limits per Verification and Approval
Payment made by
On Petty Cash Fund Below $200 Chief of Finance PHD Director or
Deputy PHD
Director
Cheque Payment Equal or Above
$200
Chief of Finance PHD Director and
Deputy PHD
Director, or
PHD Director and
Technical Officer
• No payment is to be made without an approved voucher;
• Deputy PHD should be appointed as another signatory. Any two authorised persons to sign
cheques;
• The overall approval authority will be delegated to the Provincial Health Director.
• The Accountant is not allowed to approve the payments because they have access in the funds
and recording of the funds.
• For control purposes, “check and balance principle” there must at least two authorized
signatories, PHD should appoint another authorized signatory of the checks and pertinent
documents specially in case the Director is not available of some important reasons. And this
procedure must be part of the terms and conditions in the arrangement in the MOU/Contract
with MOH (HSSP Secretariat).
• The Accountant should check the Cheque Payment Vouchers, Petty Cash Payment
Vouchers(PCPV) or Cash Payment Vouchers before presenting to PHD for approval,
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 62 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
however in case the Director is on leave or sick or has official meeting outside the province,
the Deputy PHD is authorized to approve the vouchers. But subject for post checking of the
Director when he/she is available.
• The Accountant or PPFO should anticipate the availability of the PHD(e.g. 1 week meeting outside
the province) to sign in the check in order to avoid delay in the implementation of the Program
activity. Preparation of all expenditures that are due for payment should be done.
10.4.2 PAYMENT LIMIT (ELIGIBLE SDG ODS)
Fund Level
Limits per Verification and Approval
Payment made by
On Petty Cash Fund Below $200 Chief of Finance OD Director or
Deputy OD
Director
Cheque Payment Equal or Above
$200
Chief of Finance OD Director and
Deputy OD
Director, or
OD Director and
Technical Officer
• No payment is to be made without an approved voucher;
• The overall approval authority will be delegated to the OD Director.
• For control purposes, “check and balance principle” there must at least two authorized
signatories, OD should appoint another authorized signatory of the checks and pertinent
documents specially in case the Director is not available of some important reasons. And this
procedure must be part of the terms and conditions in the arrangement in the MOU/Contract
with PHD.
• .The Accountant or Finance Officer should check the Cheque Payment Vouchers, Petty Cash
Payment Vouchers(PCPV) or Cash Payment Vouchers before presenting to OD Director for
approval, however in case the Director is on leave or sick or has official meeting outside the
province, the Deputy Director is authorized to approve the vouchers. But subject for post
checking of the Director when he/she is available.
• The Accountant or Finance Officer should anticipate the availability of the Director (e.g. 1
week meeting outside the province) to sign in the check in order to avoid delay in the
implementation of the Program activity. Preparation of all expenditures that are due for
payment should be done.
10.5 BANK ACCOUNT DISBURSEMENTS
10.5.1 INTERNAL CONTROLS - DISBURSEMENTS - LOCAL BANK ACCOUNTS
o Disbursement Voucher (DV) should be used to authorize payment of expenditures.
o Expenditure is recorded in the Disbursement Voucher and the corresponding cheque should be
attached. This voucher is presented to the signatory for the purpose of authorizing the
expenditure, then the signatory shall affix his signature on the voucher and cheque;
o Disbursement Voucher (DV) should be pre-sequentially order numbered to control its use; any
break in the number may mean a discrepancy.
o Disbursement Voucher should be approved by authorized persons using approval limits
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 63 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
o To avoid duplication of payment, all paid vouchers together with the supporting documents
must be properly stamped as “PAID” .when the cheque is signed
o Cheques are pre-numbered.
o Cheques are completely filled out before being presented for signature.
o Someone maintains physical control of cheques other than persons originating disbursement
requests.
o Spoiled or voided cheques are retained and the signature blocks on the cheques are removed.
o Two signatures are required on all cheques;
o Original bills or vouchers and purchase orders (where applicable) are presented with cheques for
signature.
o Someone sends cheques other than the person preparing the cheques.
o Someone approves bills for payment other than the persons who sign cheques.
o Bank statements are reconciled on a monthly basis (within 10 days of the end of the month) by
the accountant, shall be reviewed and approved by Chief of Finance and the Director of the
respective office, respectively.
10.5.2 CHEQUE DISBURSEMENT
Guidelines for the preparation of cheques
o The cheque should be prepared for the exact amount of the required payment.
o Blank cheques should be in the custody of the responsible financial officer until needed.
o The amount should appear in words as well in numbers.
o The currency symbol should appear in the printed position immediately left of the high
order digit.
o Voided checks should be clearly marked as cancelled, the signature area torn off and
turned over to the Deputy/Bank Accounts.
Payment in the amount of more than US$500 and $200 for central and field offices, respectively
shall be made through check, money transfer order and Cash withdrawal form.
1) The Disbursement Voucher shall be prepared by the Accounting Assistant on the basis of
appropriate documents Some examples of expenditures and corresponding attachments is:
i. Payment of rental Lease contract,
1. Ledger showing all payments made
ii. Payment of utilities
Invoices,
1. Ledger showing all payments made
iii. Payment for contractors Contract
1. If first payments, establish Ledger
iv. Payment of a liability Document as a proof of expenses
v. Payment of Purchases Approved Purchase Order
2) DV will be presented for FMG Leader for review of authenticity and reliability of documents.
3) DV and the attached cheque will be approved and signed by the Program
Director/Coordinator on the basis of established thresholds or approval limits such as
follows:
a. Program Director- above $50,000
b. Program Coordinator- equivalent or below $50,000
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 64 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
4) After the processing of the cheque together with the DV by the Director or Deputy Director,
appropriate recording in the accounting software shall be made.
5) Subsidiary Ledgers must be provided for all subsequent payments in order to establish its
validity, especially in the case of subsequent payments to the contractor or supplier. This
ledger can be printed out from Quick Book Ledger Card of Creditor in order to have
information on its balances. (See Contracted Expenditures)
6) Release of the cheque will be the responsibility of the FMG Leader. In releasing the cheque,
"the received by" column should be signed by the collector and paying officer should ask for
an official receipt for the payment made by the Program;
7) Enter the cheque issued to Bank Register or the Payment window of Quick Book Software.
10.5.3 FILING PROCEDURE
The DV should be filed together with the supporting documents and should be filed in the
Disbursement Voucher file or binder in its numerical sequential order and by month.
10.5.4 CASH WITHDRAWAL ORDER
Disbursement by Cash Withdrawal Order (with separate form from the bank) is authorized by the
Program Director. This is used for the payment to the suppliers or contractor who have
requested to receive in cash instead of cheque payment. But the Program should strongly
recommend the use of cheque rather than this form. The supplier can go to direct and withdraw
the payment from the Program bank. This kind of disbursement shall also be supported by a
Disbursement Voucher and signed and approved by the authorized signatories. Procedures will
be the same as in Cheque Disbursement.
10.5.5 MONEY TRANSFER ORDER
Disbursement by Money Transfer Order (with separate form from the bank.) is used for the payment to
the supplier or contractor who has bank account (e.g. bank to bank deposit). The signature of the
supplier or contractor is required to sign in the form as acknowledgement of the payment from
the Program.
This kind of disbursement shall also be supported by a Disbursement Voucher and signed and
approved by the authorized signatory. Procedures will be the same as in Cheque Disbursement.
10.6 PETTY CASH DISBURSEMENTS
10.6.1 PETTY CASH LIMITS
Petty Cash is to be used for minor disbursements. Petty cash management shall be in accordance
with section 6. 3 above.
10.6.2 FORMS TO BE USED:
o Sequentially numbered Petty Cash Payment Voucher(PCPV)
o Request for Petty Cash Fund;
o Request for Replenishment of Petty Cash Fund.
10.6.3 INTERNAL CONTROLS FOR PETTY CASH
o Sequentially numbered Petty Cash Payment Vouchers (PCV) should be used to document the
payment of expenditures from the petty cash fund.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 65 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
o Expenses taken from the petty cash fund should be supported with necessary receipts and other
documents.
o Petty cash voucher should be approved by authorized persons using approval limits.
o To avoid duplication of payment, all paid vouchers together with the supporting documents
must be properly stamped as “PAID”.
o To keep petty cash fund in separate locked cash box and safe vault at night.
o There should be regular reconciliations of Petty Cash funds to the Petty Cash Book;
o Personal money should not be mixed with the Petty Cash Fund.
o Petty Cash Funds are not to be used to pay personal expenses, cash personal cheques or to make
personal loans.
10.6.4 UTILIZATION OF PETTY CASH FUND
Petty cash fund will be utilized on the basis of appropriate documents and controlled vouchers,
steps shall be as follows:
1) The staff will use Request for Petty cash fund for payment of small expenditures.
2) The form shall be filled properly with all the information asked in the form.
3) This form shall be checked by the FMG leader and approved by the Program Director.
4) When approved, the cashier or petty cash fund custodian, shall attached a Petty Cash
Payment Voucher.
5) Petty Cash Payment Voucher shall be checked by the FMG Leader and approved by the
Program Director/Program Coordinator.
6) Fund will be released to the staff or claimant on the basis of the approved voucher.
7) Acknowledgement of payment from the petty cash fund is by affixing signatures in the
“Received by” column.
8) Paid expenditures shall be posted automatically to the “Debit column of Petty Cash Book”
and extract the balance of the fund automatically under “Balance column”.
9) The Cashier or custodian shall keep the voucher for file.
10.6.5 REPLENISHMENT OF PETTY CASH FUND
Imprest Method should be used for the replenishment of the fund. When petty cash fund falls at
20% of the “float” or at least monthly, fund replenishment reimbursement should be made. The
amount of the replenishment should be the amount of total expenses incurred and disbursed for
the period. The procedural steps shall be as follows:
1) All paid expenditures must be summarized in a Request for Replenishment of Petty Cash
Fund. All paid PCV vouchers together with the receipts should be attached in this Form. The
request of replenishment is prepared by the custodian.
2) The Replenishment form should be presented to the Finance Officer for review of all details,
payments made, its transparencies, its account code used and its compliance on the petty cash
procedures.
3) After review, this is to submit for FMG leader for verifications and approval.
4) After approval, Disbursement Voucher and a cheque shall be prepared by the Finance
Officer.
5) The Disbursement Voucher for the replenishment of the fund should be reviewed by the
FMG Leader/ for authenticity and compliances in the policies and procedures.
6) After review, the DV should be approved by the Program Director/Coordinator.
7) Fund reimbursement checks should be drawn to the order of the petty cash custodian to fix
his responsibility.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 66 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
10.6.6 FILING PROCEDURES
Request for Replenishment of Petty Cash Fund should be filed together with the Disbursement
Voucher and its supporting documents in its numerical sequential order and by month.
10.7 OTHER SPECIFIC EXPENDITURE
10.7.1 INTERNAL CONTROLS - TRAVEL, CONFERENCES & HOSPITALITY
o Formally adopted, written internal policies and procedures are established to control the
utilization of meals, coffee, and light refreshments at meetings and formal training
sessions;
o Authorisation of travel is exercised through use of a Travel Authorisation Form (Mission
Order) showing complete details including commencement and ending dates;
o Travel Expense Vouchers are signed by the employee and approved by the authorised
supervisor.
10.8 TRAVEL & TRANSPORTATION
Please see in Annex A2.17 and A2.19
10.8.1 DOMESTIC TRAVEL
Travel of HSSP Secretariat staff, Implementing Unit's Staff and governmental official on the
Program business within the country.
1) Travel by HSSP Secretariat Staff and Government Official:
After travel permission is approved by authorised person, the individual traveller shall receive
advance. The advance shall be given only for the percentage of expenses outlined in Section 7
– Advances. Air, boat or bus tickets or fee for rental vehicles can be paid directly to the
suppliers by the FM unit. Upon return the staff member will clear the advance by submitting
an expense report (Advance Reconciliation – Annex A 1.7) together with supporting
documents (i.e. mission order, travel visa, actual receipt for travelling and the report)
approved by his/her supervisor to FM unit and will be paid the remaining allowable travel
expense or refunded (according to the actual expenses). FM unit will review the documents,
record the expense and liquidate the Advance. Back to office record shall be submitted to
Implementing Unit's Supervisor.
2) Travel by Implementing Unit's Staff:
The advance shall be given only for the percentage of expenses outlined in Section 7 –
Advances. In the case of conducting a workshop/training at the Secretariat, the invited
Implementing Unit's Staff shall submit approved travel permission to get paid for full
payment and it will be recorded as Expense. Back to office record shall be submitted to
Implementing Unit's Supervisor.
3) Travel by National/International Consultants
Payment will follow the terms of the individual’s contract with the Program. FMG will review
the documents and record as an Expense.
10.8.2 OVERSEAS TRAVEL
The travel of HSSP Secretariat staff, Implementing Unit's Staff and governmental official on the
Program business internationally must be approved by the Program Director and MEF. Staff
should be selected on merit for attending the overseas training courses so as to ensure that the
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 67 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
persons shall return to the Country upon completion of the course and able to contribute their
knowledge to the country as intended.
Overseas Per Diem rates are based on the DSA rates approved by donors which could be
the UN rates for the relevant country.
For international travel undertaken from RGC funds, the procedures and rates of RGC shall be
followed.
1) Overseas Travel by HSSP Secretariat Staff/Government Official/ Travel by Implementing
Unit's Staff:
After travel permission is approved by authorised person, individual traveller shall receive
advance. The advance shall be given only for the percentage of expenses outlined in Section 7
– Advances, the booked hotel rooms can be provided in full. The air tickets, and training fees
(if required) shall be paid directly by the FMG. Upon return the staff member will clear the
advance by submitting an expense report together with supporting documents approved by
his/her supervisor to FMG and will be paid the remaining allowable travel expense or
refunded (according to the actual expenses). FMG will review the documents and record as
Expense and liquidate the Advance. Back to office record shall be submitted to the
Supervisor.
2) Travel by National/International Consultants:
Payment will follow the terms of the individual’s contract with the Program. FMG will review
the documents and record as an Expense.
10.8.3 TRAVEL CLAIMS
The traveller has to settle the advance to FMG within the time specified in Section 7 (Advances).
The Accountant, based on the Advance Reconciliation, will settle the advance of the traveller
(See Verification and Certification above).
The unsettled advance will be deducted from the travellers’ salaries when the traveller(s) fail to
submit their claim for settlement to the FMG after the time specified in Section 7 (Advances) The
Chief of the Financial Management Group is authorised to carry out this deduction and
settlement.
The claim will not be considered after the salary deduction of the traveller and his or her mission
accompanied member(s) is made unless:
i. failure of the claim is due to serious illness or accident or
ii. traveller is assigned, in writing, to fulfil an urgent task or
iii. traveller is on leave or
iv. Public holiday.
Receipts for actual expenses do not need to accompany claims for DSA. However
documentation needs to be attached to substantiate the number of days and the region travelled.
Following the submission of a travel claim, the traveller must return the balance remaining
outstanding to the FMG. The claim will not be accepted if the traveller does not return the
balance.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 68 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
An appropriate sanction measure will be defined and circulated through the Ministry’s
brakas/memo on an individual or a group of staff who commit fraud by overstating and/or fake
the claims on mission/training/workshop.
10.8.4 TRANSFER AND RELOCATION
From time to time, in order to meet operational and management requirements, employees may
be required to transfer from one work location to another.
In cases where transfer has come about to meet HSSPs requirements, HSSP will, where possible,
assist in the transfer by providing transport to help with the relocation of the employee and
his/her family and personal belongings.
10.9 CONFERENCES, WORKSHOPS & TRAINING SESSIONS
10.9.1 CONFERENCES
Justification of attendance may be for one of the following purposes:
a) To represent HSSP in an official capacity;
b) To advise official government representatives;
c) To serve the conference in an official capacity as an officer, resource person or
member of the conference secretariat;
d) To establish essential contacts with organizations sharing similar fields of interest;
e) To establish professional contacts necessary to achieve program objectives;
f) To facilitate recruiting activities; or
g) To report on conference proceedings.
10.9.2 WORKSHOPS & TRAINING
Training may be requested at the instigation of the employee or HSSP management. Requests
should be accompanied by detailed budget, program or plan and list of eligible participants. .
The Supervisor will submit the recommended nomination form to the HSSP Secretariat who will
liaise with the Management for approval and with the Training Centre or external estblishment
for placement and scheduling the training.
All Training and Workshops require communication and consultation with HSSP Program
Management, Administration and the Financial Management Group and the preparation of a
plan and budget before submitting a request to the Program Director for approval.
Details of allowances paid for workshops and training are shown in the annex A2.18
Training Materials
Rates for refreshments and training materials are set out in the annex A 2.18 to this manual. It is
not customary or practical to seek receipts from participants for materials handed to them at the
workshop or training. Actual costs for preparation of Certificates can be claimed by the
workshop organisers. Miscellaneous expenditure may be allowed up to 5% of the total workshop
cost. For the purpose of the claim and management reports, all the workshops and trainings have
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 69 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
to have attendance list and their daily signatures which signed as verified by the
organiser/facilitator.
Lunch, tea break, premises rental
Hiring hotel including lunch, tea break is permitted for special occasions such as national
conferences, dissemination of national policies, and conferences which involve higher level
official from central ministry level participants and require prior approval from Program Director.
10.10 HOSPITALITY COSTS
Hospitality would not normally be provided by the Program.
10.10.1 DEFINITION
HSSP2 may be required to host prospective DPs or other persons influential to HSSP
development and success (formally or informally) or for protocol. There will be occasions to
celebrate or to farewell or in gratitude for service or assistance to HSSP2. Normally these are paid
by the individuals participating without reimbursement from the Program.
10.10.2 FORMAL OCCASIONS
Hospitality such as beverages, meals, tours and entertainment may only be available to HSSP
employees who have been given prior approval to act as hosts to the guests.
When employees attend hospitality functions at HSSP’ expense at which there are guests who are
not HSSP employees, the number of employees may not exceed the number needed to conduct
HSSP business.
Hospitality extended to a spouse or accompanying person must be restricted to situations where
the presence of the additional person enhances the conduct of the occasion because of protocol.
Any approved reimbursement of expenses is to be made to the employee concerned.
10.10.3 WORK OCCASIONS
Non-alcoholic beverages and/or meals may be offered to employees who participate in major
work sessions extending over meal hours or beyond the normal working hours.
10.10.4 HOSPITALITY APPROVAL
Authority to extend hospitality must be obtained in advance from the Program Director. No
person may authorise their own expenditures for hospitality.
10.10.5 HOSPITALITY ALLOWANCES
Allowances for hospitality should be proportionate to the meal allowances provided in the travel
allowances. Financial Management Group will ensure only specially approved hospitality claims are
paid or reimbursed;
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 70 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
10.11 TELEPHONE CHARGES
10.11.1 PERSONAL CALLS
The cost of all long distance personal calls of HSSP staff or contractors/consultant must be paid
by the individual making the call. The staff member shall made prior request to Administration
Office for long distance calls (Administration Office has passwords to control the long distance
calls) At the end of each month, the Administration Office must advise the Financial
Management Group in writing when a personal long distance call is made.
When the invoice that lists the telephone calls is received, the Finance Department must advise
the maker of the personal call of the charges and request immediate reimbursement. Personal
calls not reimbursed within 10 working days must be deducted from the employee’s next salary
or fee.
10.11.2 PAYMENT OF TELEPHONE CHARGES
The Financial Management Group should pay all telephone charges within the timeframe
stipulated by the supplier, and the costs must be distributed to the appropriate responsibility
centre in HSSP on a monthly basis.
Finance Department (FMG):
o Receives the monthly telephone invoice and listing of long distance;
o Makes payment to the supplier as discussed above (Account Verification and
Certification & Payment Due Date);
o Reviews the listing for personal calls including those advised in writing by staff members
and allocates them to Staff Advances;
o Advises and collects the charges associated with personal calls from the people who
made the calls and, if necessary, requests the appropriate Responsible Manager for
assistance, and
o Deposits the amounts collected according to the policy defined in Section 6 - Receipt of
Cash.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 71 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 11
CREDIT OR GRANT WITHDRAWALS
11.1 WITHDRAWAL OR REPLENISHMENT OF PROGRAM FUNDS
Funds from Pooled DPs/Discrete DPs/counterparts will flow to the respective separate
accounts held by HSSP Secretariat. Funds will be withdrawn on the basis of appropriate
documentation and procedures that are specified in the agreement and manuals of the banks and
by the DPs.
Program payments to a supplier for more than 20% of the initial advance cannot be made from
the DA or counterpart fund account – Commitment or Direct Payment procedures must be
used.
Please refer to “World Bank Disbursement Guidelines for Projects” dated May 2006 and
instruction in the signed disbursement letter for further reference on disbursement procedure
under IDA share to the Program.
11.1.1 APPLICATION FOR WITHDRAWAL
Disbursement of Pooled funds as part of the pooled funds is be based on; (i) IFRs to be
submitted not later than 45 days of the following quarter; and (ii) the audited report covered the
previous period of the IFRs to be submitted not later than 90 days following the quarter to which
it relates, prior to submission of the following IFRs. MOH shall prepare withdrawal applications
to be submitted to DPs including IDA through the Ministry of Economy and Finance.
Signatures on the IDA withdrawal applications shall be the Minister of Economy and Finance or
designate. If IDA finds any violations (like inadequate documents/evidences, illegible
expenditures) the bank may reimburse with the reduced amount into the pooled account.
IFRs will account for the use of funds, at an aggregate level, by development partner and
reconcile the balance on the pooled account and provide the cash projection report for the next
two quarters. In addition to the summary reports the IFRs could, at the request of the
development partner, include statements of transactions which will provide the level of detail
normally associated with transaction based disbursement. The IFRs shall be furnished to the
Bank and others development partners within 45 days of the following quarter.
Initial Advance Withdrawal
On the basis of the request for deposit, each DPs to the pooled account will contributed their
shares up to the ceiling as specified in the JPA (and/or a memorandum when approved the
AOP) which equal to the estimated first six months of the program budget and in accordance
with the agreed share of financing. The Program is encouraged to consider partial advances in the
early stages of implementation or during periods of relatively low expenditure when the full
authorised allocation may not be needed.
Withdrawals for Replenishment
For replenishment of the DA is on reporting based for the projected cash requirement for the
next two quarters which normally include: (i) the outstanding commitment form the previous
quarters to be paid in the following two quarters, plus (ii) approved budget for the next quarters,
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 72 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
and deduct (iii) the audited fund balance brought forward from the preceding quarter. The
projected cash requirement is provided as part of the quarterly IFRs.
FMG Leader should review the application and verify the IFRs and completeness of the attached
documents. FMG leader should submit these applications signed and approved by the authorised
signatories.
The bank receives the withdrawal application for review and approval process. If the bank is
satisfied with the application and its supporting documents the bank will credit the funds in the
Special Account at NBC. FMG should seek a credit advice for the receipt of fund by NBC.
No replenishment should be made to or from this account during a full suspension of the
disbursements. If the disbursements are partially suspended only those expenditures related to
the component or Program not affected by the suspension is eligible for replenishment. After
suspension is lifted, the IDA may agree to make further disbursements to restore the DA.
Direct Payment to Supplier or Contractor
Direct Payment is an Application for Withdrawal where payment goes directly to the contractor
or supplier. Supporting documents showing the evidence of amount due are:
1) Summary Sheet
2) Suppliers/Contractors Invoice or Claim
3) Evidence of Shipment (where applicable)
4) Procurement Contract
5) Purchase Order
6) For civil works a summary of work progress certified by the Program technical officer and
approved by the Program authorised officer;
7) For advance payment, copy of Performance Bond or Security
8) Appropriate supporting documents
11.1.2 WITHDRAWAL FORM - SPECIAL COMMITMENT LETTER
This special withdrawal form is used for payment made to a commercial bank for expenditures
against IDA special commitment covering commercial banks’ letters of credit. This payment is
made to the Program or directly to a third party. Usually these are for payment to suppliers or
contractors for goods, works and services or the purchase of major imported goods.
Procedures for withdrawals using Commitment Letter
1. The Program/FMG shall arrange the opening of Letters of Credit (LC) in favour of the
supplier or contractor to the Commercial Bank. In the opening of LC the bank may require a
Pro-forma Invoice from the supplier;
2. After that FMG shall complete an application for withdrawal for commitment letter in two
copies. Attached to the application are the following
• Copy Pro-forma Invoice of supplier or contractor.
• The corresponding summary sheet for commitment letter using separate form for each
category,
• Copies of Purchase Order or Contract.
• Copies of Letters of Credit with valid expiry date the commercial bank proposes to issue.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 73 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
3. After approval from the authorised signatories, FMG shall send the application for the bank
for review and approval.
4. Upon approval of the application for commitment letter, the bank will issue a Commitment
Letter to the designated commercial bank and inform FMG by sending them a copy of the CL.
11.1.3 LETTER OF CREDIT
Letter of Credit-is an undertaking by the commercial bank that Bills drawn on it in compliance
with terms of payment will be duly honoured.
11.1.4 REPLENISHMENTS TO ADVANCE ACCOUNTS FOR THE OPERATION OF THE FIELD
OFFICES (NATIONAL PROGRAM, PHDS, AND ELIGIBLE ODS)
Replenishments are made from the DA to the Advance Accounts for the operations of the field
offices on a monthly basis. Documents to be submitted are:
Statement for source and use of fund;
Summary of Expenditures (SOE);
Bank Statements;
Reconciliation of advance account to the initial advance of first three month expenditure
budget of the respective filed offices.
Bank Register including Bank Reconciliation Statement;
Cash Register including Cash Reconciliation;
Advance Register;
Contract Register (if any);
Budget vs Actual Expenditure Sheet
The above documents must be checked by the responsible FMG Accountant, reviewed by head
of FMG and approved by Program Director before replenishments.
11.2 GOVERNMENT COUNTERPART FUND WITHDRAWALS
The MEF is responsible for ensuring that Government counterpart funds are made available
to Programs in accordance with the loan/credit/grant agreements and as required by the
annual work plans and budgets of the Program.
Withdrawal of government counterpart funds must be carried out in accordance with the
Government Policies and Procedures.
The FMG of HSSP is responsible for submitting withdrawal applications to the MEF.
Counterpart funds withdrawal applications should be made in accordance with the budget
plan agreed between the Program HSSP and MEF.
Counterpart funds may only be withdrawn for expenditures of the Program which are
specified in the Program loan/credit/grant agreements. Programs Team should set out the
expenditure percentages, for the Program in the Program Finance Manual as a supplement to
the main FMM.
Counterpart funds withdrawals may be made for:
Counterpart Account Initial Advance
Counterpart Account Replenishment
Direct Payment to Supplier or Contractor
11.2.1 KEY INTERNAL CONTROLS
Withdrawal applications must be signed by an authorised signatory or signatories.
Withdrawal applications must be sequentially numbered starting with the number one.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 74 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Counterpart funds advanced to Programs must be held in a Government Counterpart
Funds/Program Account at the National Bank of Cambodia or other approved financial
institution.
11.2.2 COUNTERPART FUNDS INITIAL ADVANCE
The Program Team completes the Government Withdrawal Application form for the initial
advance of counterpart funds and submits to the MEF – Department of Investment and
Cooperation (DIC).
The maximum amount of the advance of counterpart funds will be agreed between the
EA/Program Team and the MEF.
The Government Withdrawal Application Form must be signed by the authorized signatories
of the EA/Program and submitted to the DIC.
The Government Withdrawal Application must be recorded in the Program Counterpart
Funds WA Register.
The DIC reviews the completed forms and in conjunction with the Finance and
Administration Department transfers the funds to the Program’s Counterpart Funds
Imprest/Special Account and advises the Program EA of the transfer.
On receipt of advice from the NBC that the funds have been deposited into the Counterpart
Funds Special Account, the receipt of the funds should be recorded in the General Ledger and
the Government WA Register must be up-dated.
11.2.3 COUNTERPART FUNDS REPLENISHMENT
The Program Team completes the Government Withdrawal Application form and attaches a
statement of actual expenditure. Supporting expenditure documentation must be maintained
by the Program Team for subsequent review by MEF or audit.
The Government Withdrawal Application Form must be signed by the authorized signatories
of the EA/Program and submitted to the DIC.
The Government Withdrawal Application must be recorded in the Program Counterpart
Funds WA Register.
The DIC reviews the completed forms and in conjunction with the Finance and
Administration Department transfers the funds to the Program’s Counterpart Funds
Imprest/Special Account.
On receipt of advice from the NBC that the funds have been deposited into the Counterpart
Funds Special Account, the receipt of the funds should be recorded in the General Ledger and
the Government WA Register must be up-dated.
11.2.4 DIRECT PAYMENT TO SUPPLIER OR CONTRACTOR
The Program Team completes a Government Withdrawal Application Form. Separate
withdrawal applications are required for each payment in different currencies.
The following documentation must be attached to the Withdrawal Application Forms:
Copy of Contract(s).
Supplier or contractor invoice or claim
For civil work – summary of work progress certified by Program technical officer and approved by
the relevant Program authorized officer
For equipment and materials purchased - evidence of shipment, either a copy of the bill of lading
or the forwarder's certificate
Performance security such as a bank guarantee in the case of advance payments if required under
the terms of the contract, or where an unusually large advance payment is made.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 75 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
The Government Withdrawal Application Form must be signed by the authorized signatories
of the EA/Program and submitted to the DIC.
The Government Withdrawal Application must be recorded in the Program Counterpart
Funds WA Register.
The DIC reviews the completed forms and in conjunction with the Finance and
Administration Department arranges the payment to the supplier or contractor.
On receipt of advice from the DIC that the payments have been made, the receipt of the
counterpart funds should be recorded in the General Ledger and the Government WA
Register must be up-dated.
11.2.5 NATIONAL BUDGET (PROGRAM BASED BUDGET-PBB) CONTRIBUTION TO
CONTRACTING ODS AND PROVINCIAL REFERRAL HOSPITALS
Special arrangement for the contribution of PBB to contracting ODs and Provincial Referral
Hospital (PRH) under HSSP2 will be disbursed directly from MOH (through National Treasury)
to ODs/PRH Riel Bank Account using cash advance payment system.
Each contracting OD and Provincial Referral Hospital (PRH) has to establish separate Riel Bank
Account at local Commercial Bank with approval from MEF.
If the PRHs have no capacity to manage the PBB fund, the respective PHD office will be opened
the Riel Bank Account and manage the PBB fund on behalf of the PRH.
The recording of financial data and quarterly liquidation procedure will be followed by the same
system of HSSP2 Financial Management guideline.
PBB fund will be disbursed according to approved AOP and agreement between MEF and
MOH on quarterly basis. Quarterly liquidation of PBB funds will be sent to Department of
Budget and Finance (DBF) of MOH. The DBF will monitor the PBB budget and expenditures
and report to MEF on quarterly basic.
Quarterly financial report should be prepared not only the requirement of liquidation formats but
also the details activity account code according to National Budget (PBB) provision. Sample of
detail expenditure report format is shown in Annex A2.13 and Annex A2.14.
For the RGC Budget processing process, DBF needs to liquidate immediately to MEF against all
PBB advance payments including advance payment to contracting ODs/PRHs. Therefore all the
contracting ODs/PRHs have to summit original bank credit advice from the respective
commercial bank to DBF immediately when they receive PBB advances from National
Treasury.
11.3 SUPPORTING DOCUMENTS
All supporting documents be retained at the respective field offices for subsequent verification
and audit. Supporting documents for withdrawals exceeding $2,000 must be copied and
the copy sent to the FMG.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 76 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
11.4 WITHDRAWAL REGISTER
All Withdrawal Applications are numbered sequentially and are recorded in a Withdrawal
Application Register (separate Register for DPs / Lender and Government Counterpart Funds)
containing all details of each application and the relevant dates of submission, approval and
receipt of funds;
*********
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 77 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 12
PROCUREMENT & PURCHASING
The Detail procedures for the “Procurement Procedure” is showing in HSSP2 Program
Operational Manual. Please see in HSSP2 Program Operational Manual. The following
parts are only deal with the payments procedures upon the contract is awarded.
12.1 CONTRACTED EXPENDITURES
All expenditures should be in accordance to design indicated in the budget plan. In the course of
Program implementation there are provisions for construction of hospitals, health centres, major
equipments and other major civil works. These civil works should be passed in accordance with
the procurement evaluation procedures prescribed by the Procurement department.
Procurement Department should establish proper coordination to the FMG. Financial
Management Group should ensure that all conditions prescribed in the contract have been
satisfactorily fulfilled before payment is made.
The following guidelines may apply to this procurement of goods and services.
1) After receipt of approved Purchase Requisition and Purchase Order, the procurement
evaluation process will take place. Initially the Procurement Department may look for
potential bidders by an advertisement or from the pooling of potentials bidders. Bidders shall
be required to submit or tender their bids.
2) To establish commitment over their bids, as part of the initial stage of the Procurement
process, Bidders may be required to deposit a Bid bond. The Bid Bond is forwarded to the
FMG for safekeeping and recordkeeping, FMG shall deposit this bid bond to government
contribution account.
a. To record the acceptance of the Bid, entry in the books will be as follows:
Dr Asset Account/Bid Bond xxxx
Cr. Bid Bond- name of bidders
xxxx
b. Upon returned of the bid bond, entry to record the return of the bid bond.
Dr Bid Bond-name of bidders xxxx
Cr. Asset/Account/Bid bond
xxxx
3) After completion of the bidding process, the successful bidder or contractor shall be selected.
The deposited Bid bonds will be returned to the bidders.
4) On the Contract that will be made between the Contractor and Program, the provisions for
Performance Bond should be properly emphasized. The purpose of the Performance Bond
is to ensure the satisfactory completion of the work and compliance with the terms of the
contract. The size or the amount of the performance bond will depend upon the contract
negotiations. This bond will be returned after completion of the contract.
5) Aside from the Performance of the bond, the Program will also provide provisions for
Retention Fund for the purpose of the quality of the work/goods that is guaranteed by the
contractor to the Program. The amount of the Retention is also stipulated in the contract.
This Retention is deducted on the final contract payment or deducted in progress billing. The
duration or the validity of the retention is also agreed upon during contract negotiation. This
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 78 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
is returned to the contractor after duration of the date or the period agreed upon in the
contract;
6) Alternatively an Escrow Account may be used for retentions and the last audit fee when the
due date/payment term is falling after the Program closing date. Both the Contractor and the
Program Director must sign before the amount can be withdrawn;
7) Performance Bond, Retention Fund and Bid Bond should be recorded in the Subsidiary
ledger, called Contract Register and separate file should be provided to ensure the proper
financial records. Details of the performance bond and retention should be clearly indicated
in this Subsidiary Ledger.
8) Down payment or advance payment are sometimes provided as part of the provisions of
the contract. Normally 10% to 15% is being given and it should not to exceed this
percentage. This down payment or advance payment is normally for the materials to be used
for the initial phase of the contract. This down payment or advance payment shall be
deducted proportionately from the further progress billings and progress payments.
9) Progress Billing or Invoice should be submitted before any claim of subsequent payments.
Subsequent payments can be either Direct Payment or Commitment Letter or regardless of
the payment method, progress payments should be monitored using a subsidiary ledger
mentioned on the latter procedures.
10) Attached to the Progress billings/Invoice, is the Work Progress Report this certifies the
partial completion of the work the contractor has accomplished during a certain period
stipulated in the contract. This is certified by the supervising engineer in the particular work
and approved by the Program Director or PHD or NPD, whenever applicable.
11) As payments are made under the contracts, the advance payment will be gradually reduced to
zero on the final contract payment.
12) Where there are several contracts, it is important that Purchase Register with a sub account
for each contract noting important information such as the relating retention performance
bond, etc.
12.2 PAYMENT PROCEDURES
Once the goods and services have been received properly by the Program and an invoice is
received payment procedures shall be as follows;
1) The copy of the approved purchase order/contract to work will be forwarded to the FMG,
to signify the delivery of the goods and the arrangement of its payments.
2) Upon delivery of the goods Purchase Receipt for the goods delivered shall be prepared and
sent to the Procurement Section who will check it and pass it to the Financial Management
Group;
3) Payment cannot be made solely on the receipt of a successful quotation. The successful
quotation must be followed by delivery and receipt of an Invoice before a Disbursement
Voucher is prepared.
4) After proper receipt of the goods and Invoice, Disbursement Voucher will be prepared
together with the cheque;
5) The invoice, approved purchase order and receiving report will be attached to the DV.
6) Upon completion of the documents the DV together with a cheque will be presented to
FMG Leader for review and verification;
7) On the basis of this procedures, the Program Director/Coordinator will approved the
payments (DV and cheque);
8) Upon release of the payment, FMG should ask or demand official receipt of payment;
9) The Accountant will make necessary book entry in the financial records.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 79 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
12.2.1 PAYMENT PROCEDURES FOR CONTRACTED EXPENDITURES:
To establish control over contracted expenditures and to have proper monitoring of all payments
made a Subsidiary Ledger called Contract Register,(see Annex 35 ) will be made. First, the
contract should be reviewed by the FMG Leader for the arrangement and computation of
performance bond/security, down payment and Progress payments based on progress billings,
the retention and the final payment. The procedures shall be as follows:
1) FMG prepares DV and a cheque/ or Money Transfer Order (MTO) form if agreed with the
supplier. If the contract stated the payment of down payment, review the manner of payment
described in the contract;
2) The pro forma entry to record down payment should be :
Dr Advances to contractor-Name of Contractor
xxxx
Cr. Cash in bank
xxxx
3) If the payment is in the form of Money Transfer Order, the Form should be filled properly
indicating the name of supplier or contractor and the bank name and bank account numbers
of the supplier and contractors. Signature of the contractor and supplier is required as
acknowledgement of the direct payment made by the Program;
4) Simultaneous posting to the subsidiary ledger should be made for the down payment;
5) In the case of progress payments, this payment should be supported by Progress Billings or
Invoice. Attached to the Progress Billing, is the Work Progress Report that is certified by the
supervising engineers and approved by the Program Director. If there is prorated deduction
on the down payment that shall be made it should be stipulated in the contract, this will take
effect on the deduction of the progress payments. On the basis of this documentation, DV
will be prepared together with the cheque, MTO and DV. The cheque is signed and approved
by the authorised persons (See Section 2).
6) To record the progress payment in the books of the Program shall be as follows:
Dr Expenditures xxxxx
Cr Advances to contractor
xxxx
Cash in bank
xxxx
7) Simultaneous posting to the subsidiary ledger/Contract Register should be made for all
progress payments that shall be made by the Program.
8) Before the final payment of the contract FMG review the contract for the arrangement of
final payment as well the subsidiary ledger/contract register for all payments that have paid.
Provision for retention and performance should also be reviewed. Final Certificate of Work
Progress and Progress Payment Certificate, certified by the supervising engineer and
approved by the Program Director should be provided to and be checked by the Financial
Management Group.
9) On the basis of this required documentation the Disbursement Voucher and a cheque will be
prepared by FMG. DV and cheque or MTO are signed and approved by the Program
Director;
10) To record the final payment in the books of the Program shall be as follows:
Dr Expenditure
xxxx
Dr. Retention on Contracts*
xxxx
Cr. Cash in bank
xxxx
Cr. Retention payable
xxxx
11) Retention is withheld and retention payable represents a Liability
12) When the retention has expired. Payment will be made to the contractor. To record the
payment of the retention, pro-forma entry will be as follows:
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 80 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Dr. Retention payable
xxxx
Cr. Cash in bank
xxxx
13) Simultaneous posting to the subsidiary ledger should be made for all final payments made by
the Program.
14) If the payment method using Commitment Letters see Procedures on Commitment Letters.
12.2.2 PAYMENT OF RETENTION
Retention is the amount withheld for the purpose of the assurance of quality of work that the
contractor has guaranteed to the Program. Retention Fund shall be paid on the due date
stipulated in the contract. It will be deferred until it becomes due.
If the Program closes all retentions can be paid out but the contractor must give a Bank
Guarantee or through the Escrow Account.
12.2.3 FILING PROCEDURES
Purchase Requisition and Contractors Contract shall be filed with DV accordingly.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 81 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
12.2.4 ILLUSTRATIONS:
1. Procurement Process of the Goods and Services
Request for
Purchase
Potential Bidders deposit Bid bond.
Selection process will take place.
Procurement
Process
(3) Quotations,
Canvassing
Successful Bidder will enter into
Contract bet. the Program. On the
Contact, Performance bond and
Retention are stipulated.
Purchase Order
and /or
Contract
Progress Billings/Invoice supported by
Work Progress Report
Delivery of
Goods
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 82 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
2. Accounting Procedures for Purchased Goods and Services
To post in the subsidiary
ledger, the details of the
contract
Approved PO, Receiving Report
Invoice, Contracts (originals)
Progress payments/ progress
billing/Work Progress Report
Disbursement
Voucher
Cheque
Prorated deduction of
Advances, Performance bond
Verifications and
Approval
Recording process
using Quickbook or
CDB under Excel
On file
General Ledger
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 83 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 13
PAYROLL
13.1 PAYROLL
Recruitment, employment, separation, leave records, time sheets and staff welfare are the
responsibility of the Administration Section. Refer to the HSSP Administration and Personnel
Guidelines.
Payroll is calculated by the Financial Management Group using staff contracts and information
provided by the Administration Section.
Original Staff or Consultant Contracts are forwarded to the Financial Management Group, copies
are retained by the Administration Section.
As far as possible confidentiality of salary information must be maintained at all times.
Salaries are calculated on the 25 th of the month payable to the end of the month, calculated on a
30 day per month basis. Daily adjustments are made as 1/30th of the normal month salary.
13.1.1 INTERNAL CONTROLS - PAYROLL
o Engagement of Program Employees must be properly approved in accordance with the
Program guidelines, terms and conditions or other relevant instructions and is properly
documented;
o Responsibilities for supervision and time keeping, personnel, payroll processing,
disbursements, and general ledger functions should be assigned to provide segregation of
duties.
o Proper records of attendance, leave, overtime and performance must be kept;
o Salaries must be paid from the appropriate funding sources;
o Salaries shall be paid through bank transfer to the individual bank account.
o A person other than the employee’s immediate supervisor distributes the payroll.
o Detailed records of hours worked are maintained and approved, as appropriate.
o Payroll charges, including fringe benefits, are reviewed before disbursement and should be
recorded and distributed accurately and promptly.
o Written procedures are required for authorisation, recording, and controlling sick leave,
vacations, holidays, overtime, compensatory time, and stand-by time.
o Procedures are established to ensure that all attendance reports and payroll reports are
verified by supervisory personnel.
o Payroll records and reports should be adequately safeguarded.
13.2 PAYROLL PROCEDURES
13.2.1 DAILY TIME RECORD/TIME SHEET
Daily time record must be a basis for the payroll computation, record of late starts, under time,
absences, leave are necessary information for payroll computation and is the responsibility of the
Administration Section.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 84 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
13.2.2 EMPLOYMENT CONTRACT
Employment contracts for staff and consultants are the responsibility of the Administration Dept
which provides the FMG with a complete original copy of each employment contract. These
contracts are the basis for payment of services rendered for the Program. Appointments, Salary
increments and adjustments, Termination and Resignation must be formally documented in
writing. Finance Unit must be advised for the payroll computation
13.2.3 PAYROLL REGISTER,
The Payroll Register shows the details of the employees’ payroll computation. Payroll Register
must be prepared by an authorised person who must preserve confidentiality.
NAMES
Basic
Salary
Allowances Overtime Gross
Pay
Absences
Lates
Cash
Advances
Salary
tax
Net Pay
Total %
(from...)
%
(from...)
In the preparation employee details must be compared with the employment contracts.
.
Payroll Register should be submitted to FMG for thorough verification and proper check.
Payroll Register shall be presented to the Program Director for approval before payment is made.
The Payroll soft copy file in computer should be protected with password to prevent
unauthorised access.
13.2.4 PAY SLIPS
Labour Law requires that Pay Slips should be given to each employee showing each pay period's
basic pay, overtime, allowances, taxes, other deductions and net pay.
13.2.5 PAYMENT PROCEDURES
To minimise cash transactions, for safety and ease of preparation the Program shall use the Bank
Payroll Facility. The procedures are as follows:
1) The Program applies for bank payroll facility from the bank (formal negotiation and request).
2) If approved application forms for opening an account are distributed to the employees. The
bank issues a bank book for each employee and advises the names and account numbers.
3) FMG will prepare Payroll List. Payroll list shows the name of the employee, its saving
account number and amount of each salary.. This is prepared by a Accountant and approved
by the Program Director.
4) The bank will credit each employee’s salary to their respective bank/savings account number.
5) Payroll List/Payroll summary for the bank must be forwarded and submitted one (1) day
before 30th of the month.
6) The Bank record is considered adequate receipt from the employee;
7) On the 30th day of the month the staff are advised to present their books to the bank for
updating; .
8) Payroll master should stamp all the payroll documents like time sheet as “PAID”.
13.2.6 ACCOUNTING ENTRY FOR PAYROLL
Dr Salaries-
Cr Cash advance-name of employee
Cr Advance salaries-name of employee
xxxx
xxxx
xxxx
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 85 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Cr Salary loan-name of employee
xxxx
Cr Cash in bank
xxxx
13.2.7 PROVINCIAL AND NATIONAL PROGRAM PAYROLLS
Salaries to field office staff if any, shall be managed centrally by the FMG and pay directly to
those individual bank account using the same procedures as above.
*********
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 86 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 14
FINANCIAL REPORTING
14.1 OVERVIEW OF REPORTING
The approved Chart of Accounts is established and maintained to provide financial statements
according to generally accepted international accounting standards. The standards are confirmed
each year in the course of the annual audit.
14.1.1 REPORTING PRINCIPLES
Full Accountability for all DPs / Lender funds (for receipts, payments, related fund balance,
and commitments);
Compliance with loan or grant agreements and covenants;
Adequate disclosure of all material information;
Fair and clear presentation of all material aspects of financial performance and status;
Clear statement of accounting policies and standards adopted in the presentation;
Format agreed with the DPs or Lender.
14.1.2 REPORTING TIMEFRAME
Financial Management Group is committed to producing
o Monthly Financial Statements within 15 days of the end of the month,
o Annual Financial Statement and Management Report to the Program Coordinator to
check and approve within 6 weeks of the end of the Fiscal Year, and
o Approved and ready-for-Audit Consolidated Financial Statements within 2 months of
the end of the Fiscal Year.
o Quarterly Interim (Unaudited) Financial Report (IFRs) to be submitted to all DPs not
later than 45 days of the following quarter
o The Audited report covered the previous period of the IFRs and the management letter
to be submitted to all DPs not later than 90 days following the quarter to which it
relates.
o The annual audited reports together with the management letter to be submitted to all
DPs not later than June 30 after the year end.
14.1.3 TYPES OF REPORTS
Three types of financial management reports are required to be produced by the FMG to support
effective monitoring of the Program’s financial position and progress and to support sound
management decision making. These are:
o Monthly management reports
o Quarterly IFRs
o Annual Financial Statements
The MEF and DPs / Lenders use the Program’s financial management reports and annual
financial statements to monitor the financial performance of the Program and to identify issues
which require attention and management action. The annual financial statements also provide
assurance that the financial resources of the Program are being properly used for Program
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 87 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
purposes and are being properly managed in compliance with accordance with the Program’s
agreements. The IFRs are not only use for the monitoring but also use for quarterly
replenishment of Pooled and discrete donors funds.
GUIDELINE FOR CASH FLOW FORECASTING
Cash flow forecasting is necessary to prepare for the following sources of funds separately.
(1) Pooled Funding DPs
(2) Discrete DPs
(3) Counterpart
The FMG of HSSP Secretariat will prepare next two quarters cash requirements for entire
program and need to be submitted to Pooled Funding DPs, Discrete DPs and MEF using with
“Program Cash Requirement for next two quarters” form which will be included in IFR.
Separate calculation requires for each source of funds; namely Pool funding, discrete funding and
counterpart fund.
A. Funds received to date: xxxxxx
B. Funds expended to date xxxxxx (based on SOE statement)
C. Balance fund to date (A-B): xxxxxx
D: Next two quarter budget plan xxxxxx (based on AOP)
(next quarter1 plus next quarter 2)
E. Outstanding Commitment during reporting Qtr xxxxxx
(Not yet paid in reporting period but committed
to be paid the following two quarters
F. Cash requirement for next two quarters (D+E-C) xxxxxx
For pooled funds, the column F should specify further to the individual donors in the pooled by
their financing share as agreed each year when the AOP is approved.
IFR including cash forecasting for next two quarters to be submitted to DPs and IDA through
from MEF not later than 45 days of the following quarter.
14.2 INTERNAL FINANCIAL MANAGEMENT REPORTS
The following reports, together with the Program’s month-end trial balance, must be prepared
and submitted to the MEF-DIC:
• Imprest/Designated account reconciliation
• Accumulated Program expenditures by category
• Statement of loan disbursement and status of category balance
• Accumulated disbursements by category)
• Accumulated contracts awarded by category
14.2.1 BUDGET COMPARISON
Annual Budgets are based on the Program annual work and procurement plans. The regular
financial management reports must be prepared showing actual financial performance compared
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 88 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
to budget and the variations to budgets. Variations to plans analysed and reported to enable
management to monitor progress and make decisions on Program implementation and related
issues. Analysis of variations to budgets should include identification of the reasons for
deviations, implications of the variations, and forecasts of the estimated revenue and expenditure
based on the actual financial performance to date.
For comparison with the budgets the working budget line is required and should be prepared
beforehand. Procedures shall be as follows:
1) The expenditures totals from the financial reports/working trial balance are to be plotted
against the budget data per budget line category for the quarter.
2) The Budget for the quarter should be posted to the appropriate column in the financial
reports, if more than one quarter has been reported, the columns for actual expenditure to
date and budgeted expenditures to date shall also be shown.
3) On the next column will be a Variance, the difference between actual spending and budgeted
amount. Any significant difference shall be explained.
For the Budget data set the amount of budget data per budget line following the Chart of
Accounts. Each item of expenditure will be posted under Budget window of Quick Book. Then,
Report on Budget against actual expenditures will be automatically generated. The difference or
variance as result of the comparison will only appear as negative or positive. To explain the
variance, go to Excel command; then you can provide a space for the explanation of the variance.
The final report can then be printed out from the Report window of Quick Books accounting
software and go to Excel window of Quick Book so that you can comply on the required format
by the bank,. Defined as follows:
• Program Balance Sheetis
statement showing the financial condition of the Program as of given time
• Sources and Uses of Fund Statementstatement
showing the amount of fund that has received and expenses made by the Program
for the given period of time compared with budget. This statement should provide in
consolidation for the whole program, and segment by locations and source of funds
compared with budget.
• Use of Funds by Cost Category and Componentshows
the spending by each cost category/component by source of funds and location,
comparing with the budget.
• Use of Funds by activity supported in the AOPshows
the spending by activity in the AOP by source of funds compared with budget.
• Explanation shall be provided for any variation exceeding 10% from the budget.
Reports may also be required to monitor compliance with the financial policies and procedures of
the Program. Examples include:
• List of outstanding advances (yet to be liquidated)
• List of commitments
• Outstanding withdrawal applications
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 89 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
14.3 REPORTING FROM PROVINCES AND NATIONAL PROGRAMS
14.3.1 MONTHLY MANAGEMENT REPORTS (MMR)
These reports are prepared by Provinces (PHD’s), National Programs and by the Central Level
HSSP Office and are forwarded to the FMG Leader.
Steps for Preparation Month End Financial Management Reports:
(using Excel Spreadsheet)
1) Finalise the Trial Balance and close all books of account, using procedures below:
2) From the Trial Balance for the end of the month, extract account balances of assets and
liabilities to the Debits and Credits column respectively in the Balance Sheet.
3) From the Trial Balance for the end of the month, extract totals/account balances for
Receipts and Expenditures to the appropriate debit columns for expenditures and
appropriate credit columns for the Receipts.
4) Determine the difference between the Total Receipts/ and Total Expenditures.
a. if total fund receipt exceeds total expenditures the difference is called Net Cash In
Flow
b. if total fund expenditures exceeds fund receipt the difference is called Net Cash
Outflow.
5) To get Fund balance, add /carry forward the Net Cash Inflow and deduct Net Cash Outflow
to the opening balance.
6) Compare the results to the following financial documents.
a. Cash in bank accounts must be equal to the bank reconciliation statement & bank
account control book
b. Cash Account should be equal to the cash reconciliation statement,
cashbook/petty cash book.
c. Fixed asset account must be equal to the Fixed asset register.
d. Major expenditures must be equal to the appropriate documents, such as contract,
invoices, receipt and or any proof of payment.
e. All expenditures must be in accordance to the budget line.
7) The final reports can then be produced. From these financial reports, Sources and Uses of
Fund by Program Activities per component and per cost category and Balance Sheet can be
extracted.
8) Prepare the MMR based on the checklist using required Format shown in the succeeding
page of this manual. The MMR checklist will be as follows. (Format are showing in para
14.4.4)
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 90 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
No Name of Report Responsible
Dept/Person
1 Balance Sheet Finance
Officer/Accountant
2 Resources and Uses of Fund Finance
(consolidated and by source of Officer/Accountant
funds) compared with budget
Deadline
10 th of the following
month
10 th of the following
month
3 Uses of Funds by Program
activities, category, component,
(consolidated and by source of
funds) compared with budget
Finance
Officer/Accountant
10 th of the following
month
These Financial reports should be signed and approved by the respective Director of each
location. The consolidation reports from ODs and with the PHD will need to submit to MOH
(HSSP Secretariat) not later than 15 days after each month ends.
Schedules to the Accounts
Schedule of accounts from financial statements from the provinces must also be prepared and
filed for audit trail and bank confirmation, these schedules are:
For Bank account – Monthly bank statement and monthly bank reconciliation statement
For Petty Cash – Monthly Cash Reconciliation Statement - supported by Cash Book,
Cash Count Sheet
Expenditures per Component, Sub component, Cost Category, activity in the AoP and by
source of funds.
Fixed asset accounts - Fixed asset register, Vehicles Log book register
Advance register – reconciled monthly with the general ledger
Contract register
Commitment - List of outstanding accounts from suppliers, Contractors
14.3.2 POST CHECKING DOCUMENTS
The appropriate FMG Accountant will visit field offices at least once each Quarter scheduled
before the end of the month in a rotation basis to ensure that each office is visited during the
year to check all appropriate expenditure documents. The files of all Cheque Payment Vouchers
and Petty cash payment vouchers shall be presented for thorough checking. The result should be
discussed with the management of the field office during the exit meeting. Follow up should be
appropriately made when significant weaknesses are identified. Any training need be notified to
the FMIP consultant for further action and gap filling. Back to office report shall be prepared
and submit to the Program Director/Coordinator.
14.4 EXTERNAL REPORTS
HSSP II is required to submit quarterly IFRs within 45 days of the end of the quarter e.g.
1st quarter Report - May 15 3 rd quarter - November 15
2 nd quarter Report - August 15 4 th quarter - February 15
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 91 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
The IFRs checklist to be prepared within the responsible unit/staff of the Program before
submitting to Program Director/Coordinator for reviews:
O Name of Report Responsible
Dept/Person
1 Discussion of Program Progress FM, Technical and
Procurement
2 Statement of source and use of funds FMG Leader
compared with budget – consolidate
and by:
o source of funds
o location
3 Statement of payments compared FMG Leader
with budget - consolidated and by:
o activity approved in the AoP
o category
o component
o source of funds
o location
Deadline
Quarterly- 30 days end of
the quarter*
Quarterly- 30 days end of
the quarter*
Quarterly- 30 days end of
the quarter*
4 Projected cash requirement for the
next two quarters – consolidate and
by source of funds
FMG Leader
5 Reconciliation of Pooled Account FMG Leader
6 Physical Progress Report-Physical Chief WB/ADB Unit
Output
7 Procurement Monitoring Report Chief of Procurement
officer
Quarterly- 30 days end of
the quarter*
Quarterly- 30 days end of
the quarter*
Quarterly- 30 days end of
the quarter*
Note: Number 1, 5 & 6 will be the responsibility of the Chief of the Technical Unit and Chief of
Procurement respectively.
14.4.1 PRODUCTION OF IFRS
This is prepared and submitted to all DPs and MEF, one copy will be retained by the Program.
Before submission on the prescribed date, IFRs should be signed by the authorised signatories.
14.4.2 INTERNAL AUDITOR
The Internal auditor is obliged to conduct independent audit of all disbursements incurred by the
Program activities. The Internal auditor shall maintain independent mind in conducting the audit.
The regular visit shall be scheduled by the Ministry of Health.
14.4.3 MONTHLY FINANCIAL MANAGEMENT REPORTS
Monthly Management Reports are required to be submitted by FMG to the Ministry of
Economics and Finance (DIC) showing actual performance compared to budget and budget
variations (analysed) including:
Month End Trial Balance
Imprest/Designated Account Reconciliation
Accumulated Program Expenditures by Category
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 92 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Statement of Loan Disbursements and status of category balance;
Accumulated Disbursements by Category;
Accumulated Contracts Awarded by Category
List of Outstanding Advances;
Outstanding Withdrawal Applications
14.4.4 FORMAT OF MONTHLY FINANCIAL MANAGEMENT REPORTS
Report 2
Kingdom of Cambodia
Health Sector Support Program
IDA/DFID/RGC Credit No_______
BALANCE SHEET
As at__________(dd/mm/yy)
Note
In USD
Assets
Cash on hand
Cash in bank
Special Account(statement of reconciliation is attached in Annex---)
Program Expenditures
Component 1
Component 2
Component 3
1
2
3
4
Total Program Expenditures
Total Assets
Liabilities
Total Liabilities
Liabilities and Funds
Fund Balance
IDA
DFID
GOKC
Others
Total Funds
5
Total Liabilities and Funds
1. Provide details by bank accounts at national and provincial level
2. Provide statement of bank reconciliation statement as of reporting period
3. Provide details of advances by Provinces and bank reconciliations as of reporting period
4. Details by Program activities and provinces are provided in report 4.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 93 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
1. Receipts
IDA Funds
DFID Funds
Government Funds
Others
Total Financing
2. Program Expenditures by Component
1
2
Priorities
Others
Total Expenditures
3. Net Cash Inflow(Outflow)(1-2)
4. Opening Cash balances
5. Total Closing Balances (3-4)
Report 3
Kingdom of Cambodia
Health Sector Support Program
IDA/DFID/RGC Credit No.---
Sources and Uses of Funds Statement
For the Quarter Ended_______(dd/mm/yy)
(In US dollars)
Quarter Year to Program Forecast
Date to date Next-----------
Month
Per PAD
Closing Balances
IDA Special Account
Second Generation Accounts
Counterpart Fund Account
Total
Disbursement Categories/Type
Quarter-
US$
Year-
US$
Cumulative-
US$
Per PAD
(In US$)
1.
2.
3.
4.
5.
6.
7.
Total Program Cost
Remarks:
1/ As shown in Annex 6 of the Program Appraisal Document (PAD)
Kingdom of Cambodia
Health Sector Support Program: IDA Credit No.---
Uses of Funds by Program Activities
For the Quarter Ended_______(dd/mm/yy)
(In US dollars)
See Annex IFR format B1.1.to B1.22
*********
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 94 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 15
PERIOD END PROCESSING
15.1 MONTH END PROCEDURES
The Second Health Sector Support Program’s monthly consolidated financial statements and
other related reports must be printed out from QuickBooks Accounting Software and need to be
reviewed first by the Finance Officer before submission to the Program Financial Management
Leader. This is to be done before closing the accounting period. To ensure that the financial data
for each month is complete and accurate, the General Ledger accounts should be reconciled to
the supporting accounting records below. Any differences arising should be investigated
immediately and adjusting entries should be recorded, this is applicable for each account of
central, provincial and national programs.
1) From the Bank Accounts- Cash in bank accounts from the General Ledger account
should be equal to the Bank Reconciliation Statement per bank account of Program
outlets (provincial, national program and central office). Bank reconciliation should also
be equal to Daily Cash Position Book. If it is not equal to the balance in the manual
Daily Cash Position Book, these differences maybe due to the following;
a. Posting error to incorrect account code
b. Some transactions of the bank are not yet posted in the general ledger
2) Petty Cash Balance-The balance in the General Ledger accounts should be reconciled
against the amount in cashbook and amount in Cash Reconciliation Statement.
3) Advance Account- The balance in the Advance account in the general ledger should be
tallied as per Advance Control Book and to the total balances per Individual Advance
Card.
4) Salary Account-The balance in the general ledger account should be tallied against total
salaries as per Payroll register. Any errors should be investigated immediately.
5) Fixed Asset Account- the balance in the general ledger account should be tallied with the
Fixed Asset Register. Fixed Assets should be tallied also to the results of the physical
count inspection which should be performed at least once a year.
6) Expenditures Account- the balance in the general ledger accounts specially those major
expenditures should be tallied with relevant accounting records such as subsidiary ledgers
or Contract Registers/Purchase Register .Make sure that all respective disbursements
vouchers were checked by the respective Finance Officers.
7) Before Consolidation of FMRs’ per provinces, make sure that Interoffice Account
Registers have been sent to all concerned provinces and national program. Each account
in their respective general ledger is tallied with the respective financial documents before
finalisation of the report.
8) After review and confirmation of general ledger accounts against accounting books and
registers: The detailed General Ledger and Final Financial Statements reports will be
finally printed out from the General Ledger and Reports Window of Accounting
Software respectively, and kept in the General Ledger Binder and FMR Binder as a
comprehensive records for the audit trail and bank confirmation.
15.2 YEAR END PROCEDURES
HSSP financial year ends on 31 st December.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 95 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
15.2.1 CARRY FORWARD SURPLUS OR DEFICIT
When closing the year Quickbooks automatically calculates and transfers the closing accumulated
balance to the next year opening balance.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 96 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 16
FILING & ARCHIVES
16.1 RECORDS MANAGEMENT
It is the responsibility of the Program management team to ensure that there is proper record
management and security of information for Programs. The Program management are
responsible for ensuring that all personnel in the Program are aware of, and comply with the
record management policies and procedures.
16.1.1 SUPPORTING DOCUMENTS
Original Payments supporting documents will be retained and filed at the respective originating
Finance Section of the Implementing Agency. Only electronic records and original Month End
Reports will be forwarded to FMG at Central Level.
16.1.2 PROGRAM FILE
A Program File is required to be maintained by the Program management in a safe and secure
location. This is a permanent file and the Program manager is responsible for sustaining its
continued currency, relevance and security.
A Program file must contain:
All information gathered during fact-finding, appraisal and supervision of a Program. This
material is required to provide staff and management with continuous access to regularly
updated information related to a Program, its background, and on the executing agency and
various institutions of government whose decisions are likely to have an impact on its
performance during implementation and subsequent operation of the Program.
All key data including maps and organization structures, including the various agencies
involved in the Program; details of original and amended economic and financial policy
decisions which would affect the Program; assumptions and basic calculations used for
financial analysis, for financial performance indicators and for design of financial covenants.
Copies of all computing software applications used in compiling data, including basic
programming data and macros for software such as MS Excel which may be used to develop
Program-specific programs and analyses. The back-up files are to be stored in a location
separate from the storage of the original files.
For purposes of disbursement records and supporting documents, copies of contracts, suppliers’
invoices, statements of accounts, official receipts must be stored in fire-proof cabinets in a safe
location. These must be retained for at least two years from the completion of the last audit
of the Program by external auditors.
16.2 SAFE KEEPING OF FINANCIAL RECORDS
All relevant documents such as contracts, financial reports, bank documents, business registration
and licenses must be kept in a safe place or fireproof cabinets. The Head of the EA is responsible
for ensuring that all records pertaining to the Program upon its completion must be kept in a safe
and secure place.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 97 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Contracts and Agreements: Must be readily available in agency’s place of operation. Originals
must be filed in fireproof cabinets.
Payment Vouchers and Supporting documents: Must be filed in a separate binder
numerically by month and year. Payment Vouchers must be filed separately from Receipt
Vouchers.
Vendor Invoices/Purchase Orders and other documents: These documents should be
attached to the payment vouchers and filed accordingly.
Official Receipts and Bank Receipt Journals: Must be filed in separate files in receipt number
order by month and year.
Advance Requests: Must be filed in the advances folder with separate sections for outstanding
advances and acquitted (liquidated) advances.
Bank Account Authorised Signatories: Original signature documents must be held in
fireproof safe, with control over access and copying.
Bank Statements and Reconciliations: Must be filed in date order with separate files for each
bank account and must be held securely in fireproof location.
Financial Management Reports: Must be filed in date order.
Annual Financial Statements and Audit Reports: Original signed statements and audit
reports must be held securely in fireproof safe.
16.2.1 STORING, DESTROYING & ACCESSING DOCUMENTS
DPs / Lender Requirements:
Hard copy (paper) documents must be kept for at least two years after the audit of that year is
complete.
Cambodian Legal Requirements:
Financial Records must be kept for at least ten (10) years.
16.3 COMPUTER FINANCIAL DATA
Correct filing of Financial Data is essential for easy retrieval and for attaining transparency.
Each Unit must maintain a proper in the computer so that the information
can be opened quickly for Internal or External Audits or routine inspection by HQ Finance
Officers.
Daily, Weekly and Monthly backups must be made on diskette, CD or external drive and
stored outside of HSSP premises.
A whole year backup must be done at the close of the year and sent to FMG for Storage.
The financial data must be managed in a uniform file management system throughout HSSP.
Files should be maintained in the Directory structure:
/ Pooled funds (DPs / Fund)
/ Discrete
/ Counterpart
/ Journal (Type of File)
/Year /Month)
/2009-01
/2009-02
*********
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 98 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 17
AUDIT
17.1 INTERNAL AUDITS
For further information please refer to the Internal Audit Manual.
17.2 EXTERNAL AUDITS
The Terms of Reference for External Audit Firm are showing in Attachment 20
17.2.1 MANAGEMENT LETTER FOLLOW UP
The HSSP management should ensure that a follow up mechanism is put in place, through which
the issues and recommendations of the auditors as outlined in the Management letter are
regularly reviewed and follow up action taken in a timely manner. This will ensure that all the
identified weaknesses are appropriately addressed without delay and status be provided as part of
quarter IFRs to all the DPs and MEF.
For this purpose the HSSP Management may consider appointing an Audit Committee, with
adequately qualified personnel, who will have the responsibility to ensure that the issues and
recommendations as articulated in the Management letter are given appropriate attention by staff
and management alike.
*********
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 99 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 18
Fund Flow and Disbursement Arrangement for
Provincial and Below Levels
18.1 ACCOUNTING SYSTEM (HSSP2) AT PHD AND BELOW LEVELS
The eligibility of the program expenditures at PHD and below levels shall be based on signed contracts
and/or approved Annual Operation Plan (AOP). For the SDG grant payment, the eligibility of the payments
shall be consistence with the SDG eligibility expenditure describing in SDG manual.
Transfers from the pool account at NBC to various implementing levels (except central department) will be
made on a monthly basis with an initial advance, equal to the forecast of three months’ expenditures, by bank
transfer to respective accounts of the implementing units. At provincial level, the PHD is responsible to
consolidate the financial reporting including Statement of Expenditures (SOEs) from all ODs/PRH to the
central office (HSSP Secretariat) on a monthly basis for review and consolidate; additional advance would be
conditional on receiving these acquittal reports.
The basis for determining the counterpart fund requirements will be the agreed AOP. The contribution for
co-financed items, as well as complementary items, will be deposited into a separate bank account opened in
the same bank as the pooled account in accordance with the same principles and timetable as the pooling
partners’ shares.
All the discrete donor funds will be the same components to support the objective of the HSSP2 program.
The discrete donor funds may support to all provinces including SDG provinces/ODs/Provincial Referral
Hospital and non-SDG provinces.
18.2 PHD LEVEL
It has two different types of PHD under the program; for SDG province and Non-SDG province.
18.2.1 SDG PROVINCES
Establishment of bank accounts
Based on Management and financial assessment result, the following US dollar Bank Accounts shall be
opened for PHD.
(1) Pooled Advance Account at Local Commercial Bank
(2) Counterpart Advance Account at Local Commercial Bank (same bank; different accounts)
(3) Discrete Advance Accounts (if any) at Local Commercial Bank (same bank, different accounts for
each discrete funds)
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 100 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Authorized Signatories
The authenticated specimen signatures of the authorised signatories are required to be submitted to the MEF,
donors or lenders before any disbursements can take place. Any changes of Authorised Signatories must be
notified to the MEF and respective donors/lenders.
The official authorized signatories of the cheque withdrawals and other pertinent documents shall be any two
of the following:
- Provincial Health Director
- Technical Officer
- Deputy Provincial Health Department
Fund flow and report
(Please see Fund flow diagram in Section 1.5 above)
Pooled and Counterpart funds
The fund requirement for PHD will be transferred from Pooled and Counterpart Accounts held by MOH
(HSSP Secretariat) to their respective Pooled and Counterpart Advance Accounts held by PHD.
Discrete Donor Funds (if any)
The fund flow of the discrete donor funds will be the same principle of the Pooled fund flow.
Receive initial advance from MOH central (from FGIA)
• The PHDs/eligible ODs receive a notification/ credit notes from the Bank (ie, Acleda Bank) for each
transfer of funds from FGIA (for Pooled, Counterpart, and Discrete funds).
• Based on the bank’s credit advice, the accountant prepares a sequential pre-order numbered of
“Receipt Voucher” (RV) (Annex-A1.4) for respective accounts. Verified by Chief Accountant and
submit to Director for approval of receipt.
• Upon approval, the accountant records the transaction in the respective bank register (Annex-A2.3).
And file the RVs together with copy of cover letter request for replenishment and credit advice in the
Bank file in numerical order and by month.
Expenditures and Payments
All expenditures shall be paid according to respective contract agreement and budget provision of each level.
All level of departments will have two Bank Accounts and one Petty Cash Accounts for pooled funds and
separate bank accounts and separate petty cash accounts for each discrete donor funds;
For example:
Pooled and Counterpart Funds
1. HSSP2 Pooled Advance Account
2. HSSP2 Counterpart Advance Account
3. Petty Cash Accounts (allow to withdraw only from the advance counterpart account, and
reimbursed the related eligible expenses and share from the Advance Pooled Account)
Discrete Fund
1. HSSP2 Discrete Advance Account -1
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 101 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
2. Petty Cash Account (Discrete Fund -1 Petty Cash)
3. HSSP2 Discrete Advance Account -2
4. Petty Cash Account (Discrete Fund -2 Petty Cash)
The Payment system and financial records
Pooled and Counterpart Funds
All the payments and expenditures shall be paid by cheque separately from each Bank Account according to
agreed financing ratio except small payments/expenditures (below or equivalent to US$ 200 per transaction)
that may not be convenient to pay simultaneously from two Bank Accounts of Pooled and Counterpart
Account and these small payments can be paid from petty cash with full amount of request The initial
amount for petty cash will be pre-financed from the counterpart fund and Before the end of each month,
the total entitled refundable amount of Pooled funds share shall be reimbursed from the Pooled
Advance Account to the Counterpart Advance account via bank transfer.
PHD has to record its own financial activities and for Provincial Referral Hospital and maintain the
supporting document for subsequent reviews and audits. PHD will also review, assess, and recommend all
lower level’ financial reports and budget.
Eligible OD has to record its own financial activities and for District Referral Hospital and Health Centers
under its coverage. And maintain all supporting documents for subsequent reviews and audits.
Discrete Fund
The payment system for each discrete donor funds will follow the same mechanism as Pooled and
Counterpart funds, except there is no pre-finance from the counterpart fund for the operation of petty cash.
The petty cash amount will withdraw from respective Discrete Advance Account, and maintain separately.
CHEQUE PAYMENTS
Expected to disburse cheques from Bank accounts are in the following matters;
• Operating cost and/or advances for training/workshop, for the travelling allowance and per diem for
PHD staff which are more than $200 in single request and/or per transaction.
• Reimburse payment or activity based advance to Non SDG OD and Provincial Referral Hospital
expenditures (under the budget and financial management control of PHD).
Guidelines for the preparation of cheques
• The cheque should be prepared for the exact amount of the required payment.
• Blank cheques should be in the custody of the responsible financial officer until needed.
• The amount should appear in words as well in numbers.
• The currency symbol should appear in the printed position immediately left of the high order digit.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 102 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
• Voided checks should be clearly marked as cancelled across the signatures and the amount .It must be
attached to its voucher and kept on file.
• No cheques can be drawn payable to cash (Open Cheque). Petty cash cheque should be made payable
to the name of cashier.
Accounting Process for Cheque payments
• On requesting of expenditures together with original invoice and other necessary documents, the
accountant classifies the account/expenditure code, prepares the “Disbursement Voucher” (DV)
(Annex-A1.1).
• The Chief of Finance verifies the DV and submits to the Director for approval.
• After approving by chief of department, the accountant prepares two cheques for payments from
both Bank Accounts.
• The cheque recipient signs on the DV for receipt (If necessary, separate Official Receipt have to issue
by recipient)
• The accountant records in respective bank register (for Pooled, Counterpart, and Discrete Advance
Accounts). Stamped “PAID” in DVs to ensure no duplication of payment. The other side for
expenditure will be recorded to Monthly Progress Expenditure Register (Annex-A2.6 for PHD
and Annex-A2.7 for OD) according to classified account/expenditure code and verified by Chief of
Finance at each location.
• File DV voucher, official receipt, original invoice, vouchers and other documents file in Bank
Payment file – by its sequential ordering number and by month.
ADVANCE PAYMENTS
Advance Payments can be paid in accordance with the agreed AOP in the “Memorandum of Understanding –
MOU”. Advance can be withdraw from respective accounts (Pooled/Counterpart/Discrete) based on the
approved activity using the same mechanism as stated in Section 7 above and shall also record in the separate
advance control accounts for respective funds.
Pooled and Counterpart funds
• Applicant completes a request of advance (RA) (Annex-A1.6) according to agreed financing
proportion of Pooled and Counterpart funds and submits it to accountant.
• The accountant reviews the RA together with necessary documents (eg, approved AOP,
budget...etc), and prepare the DV & cheques for submission to Chief of Finance. Chief of
Finance verifies the RA, DV, cheque & the attached supporting document and submit them to
the Director for approval.
• The Director reviews and approves the RA, DV and cheque, then returns them to HSSP2
accountant.
• The applicant of advance signs in DV for confirmation of receipt.
• The accountant records in both Bank and advance control register under respective source of
fund (See Annex-A2.10b).
Advance Control Register (Pooled Fund)
Advance Control Register (RGC Counterpart Fund)
Pooled Bank Account
RGC Counterpart Fund Bank Account
Debit
Debit
Credit
Credit
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 103 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
• The accountant files the RA, a copy of DV and all original documents in the file.
• For the purpose of Control of Advance the “Advance Register” (See Annex-A2.10a) should be
recorded. This can be kept on MS Excel spreadsheet or manual book. At the end of the month, all
outstanding cash advances are listed and accountant should check overdue advances.
18.2.2 SETTLEMENT OF ADVANCES
• The recipient of an advance provides an “Reconciliation Amount of Advance” (Annex-A1.7)
together with “Advance Control Register” (Annex-2.10b) (prepared by Accountant), all the
supporting receipts and other documents for actual expenditures incurred and settling any balance
between the amount advanced and actual expenditures incurred. Advance Reconciliation Form
must be properly filled by indicating the date of advances, Cash Advance form number, date the
settlement was made and the balance should be indicated. An Official Receipt should be issued
for any return of cash advance and a Disbursement Voucher or Petty Cash Payment Voucher for
payment of the balance.
• The accountant ensures that the above is in proper order by confirming that all payments are
supported by valid, original documents, approves the Statement of expenditure and clear the
advance as follow:
• When total expenses are greater than the advance, an additional “Disbursement Voucher” (DV)
or Petty Cash Payment Voucher (PCPV) is prepared for reimbursing from Bank or Petty cash.
(Please note that if the reimburse amount of advance is small (below or equivalent to US$ 200)
and pay from petty cash, it will be meant fully paid from RGC counterpart fund.) Checked by
Chief of Finance and approves by Director. The Recipient signs in DVCH or PCPV to confirm
receipt of the reimbursement.
• When total expenses are less than the advance, General Journal Voucher (Annex-A1.3) is
prepared for refund to respective bank accounts or Petty cash. If the balance is refunded to Petty
Cash, the cashier has to sign the receipt of cash in General Journal Voucher.
• An entry is made in both advance control registers as well as in the Bank register or Petty Cash
book. At the same time classifies all the expenditure/account code and records in Monthly
Progress Expenditure Register (Annex-A2.6 for PHD or A2.7 for below PHD level).
(1) Posting of expenditures which incurred from advances will be recorded as follow using with “
General Journal Voucher” (Annex-A1.3);
Expenditure Account (Monthly Progress Expenditure Register) Debit
Advance Control Register (under respective funds)
Credit
(2) When total expenses are greater than the advances (below the amount of US$200), the
reimbursement can be paid from petty cash. Using with PCPV.
Expenditure Account (Monthly Progress Expenditure Register) Debit
Petty Cash Account
Credit
(3) when total expenses are greater the advance (more than US$200) the reimbursement shall be
paid by cheque from the respective accounts.
DV
Expenditure Account (Monthly Progress Expenditure Register) Debit
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 104 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Respective bank account
Credit
PCPV
Expenditure Account (Monthly Progress Expenditure Register) Debit
Petty Cash Account (Respective funds)
Credit
(4) When total expenditures are less than the advances, the excess amount of advance shall be
refunded to the respective accounts or to petty cash account, if these will not lead to the excess of
petty cash limit. Using with “General Journal Voucher”.
Bank Account (of respective funds)
Advance Control Register (of respective funds)
Petty Cash Account (of respective funds)
Advance Control Register (of respective funds)
Debit
Debit
Credit
Credit
PETTY CASH ACCOUNT
The Petty Cash is allowed to use for the expenditure of Per diem, travelling allowances, training cost
(if any), and meeting cost for PHD and eligible ODs staff which are not more than $200 in single
request and/or per transaction.
Initial Petty Cash Request
(Limit US$1.000) (Single payment not more than $200)
Petty cash will be allowed to withdraw from “RGC Counterpart Fund Bank Account” for the
expenditures pooled and counterpart fund. For the discrete donor funds, each separate petty cash
account can be opened for respective expenditures.
• The accountant/Cashier prepares the a sequentially numbered “Request for replenishment of Petty
Cash” form (Annex-A1.5a), a “Disbursement Voucher” and prepares a cheque (to withdraw from
RGC Counterpart Fund Bank Account) for initial petty cash (normally $1,000).
• Verify by Chief of Finance and submit to Director for approval.
• The cheque is cashed; the HSSP2 cashier signs the “Disbursement Voucher” as evidence of
receiving cash. This cash is immediately placed in the Petty Cash Box/ safe.
• The accountant records in Bank Account and the cashier records in Petty Cash Register (Annex-
A2.4).
• The accountant files the “Request for replenishment of Petty Cash”, a copy of cheque and a copy of
“Disbursement Voucher” in the petty cash file in numerical order (The original Disbursement
Voucher should be filed in the Bank file).
Petty Cash Payments
• Fill out the “Petty Cash/Imprest Account Request” form (Annex-A1.5b) by petty cash requester.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 105 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
• The accountant classifies the account/expenditure code, and prepares a sequentially numbered
“Petty Cash Payment Voucher” (PCPV) (Annex-A1.2) on production of a valid and original
voucher, invoice, per diem request etc.. and “Petty Cash/Imprest Account Request” form (Annex-
A1.5b)
• The PCPV together with supporting documents and Petty Cash/Imprest Account Request form are
forwarded to the Chief of Finance for review and then submitted to Director for approval.
• The approved PCVC and supporting documents are returned to accountant and stamped “PAID”
to ensure no duplication of payment.
• Upon settlement of claims, the recipient is paid in cash and the recipient signs on the PCVC to
confirm receipt of cash (If necessary, request official receipt from recipient).
• The Cashier records in Petty Cash Book (For the Riel Payments, use the official exchange rate at the
date of the transaction, to convert into US$ amount ). Checked by Accountant.
• The accountant files the PCPV and supporting documents in the petty cash file.
• Record in Monthly Progress Expenditure Register (Annex-A2.6 or A2.7) according to classified
account/expenditure code.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 106 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Expenditure Account (Monthly Progress Expenditure Register)
Petty Cash Register
Debit
Credit
Replenishment of Petty Cash
• The Cashier prepares the a sequentially numbered “Request for Replenishment of Petty Cash ”
form (Annex-A1.5a), the accountant prepares a “Disbursement Voucher” (Annex-A1.1), Cash
Count Sheet (Annex-A2.5) and a cheque for petty cash replenishment (to replenish from RGC
Counterpart Fund Bank Account).
• Verify “Request for Replenishment of Petty Cash” together with Petty Cash Book by Chief of
Finance and submit to Director for approval.
• The cheque is cashed, the cashier signs the “Disbursement Voucher” as evidence of receiving cash.
This cash is immediately placed in the Petty Cash Box/ safe.
• The accountant records in Bank Account and Petty Cash Register.
• The accountant files the “Request for Replenishment of Petty Cash Fund”, a copy of cheque and a
copy of “Disbursement Voucher” in the petty cash file in numerical order (The original
Disbursement Voucher should be filed in the Bank file).
Petty cash accounting system for all discrete donor funds will be the same as pooled and Counterpart
fund system.
Months end financial report and replenishment
At provincial level, the PHD is responsible to review, verify, and recommend the financial reporting from all
contracted ODs and Provincial Referral Hospitals. PHD will submit the following financial reports to central
(MOH) for replenishment on a monthly basis; additional advances would be conditional on receiving these
acquittal reports.
For PHD’s own expenditures
1. Financial report using from Pooled Fund
2. Financial report using from Counterpart fund
3. Financial report using from separate discrete donor fund
For each ODs and PRH’s expenditures
(PHD has to review, check and recommend on each OD and PRH’s financial report)
1. Financial report using from Pooled Fund
2. Financial report using from Counterpart fund
3. Financial report using from separate discrete donor fund (if any)
The PHD accountant shall record and update all PHD’s financial transaction everyday. Not later than 10 days
following the end of each month, the PHD shall forward the PHD’s monthly financial report together with
all ODs /PRHs expenditures to Central MOH (HSSP Secretariat) not later than 20 days after each month
ends .
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 107 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
After receiving of ODs’ and PRH’s monthly financial statements and necessary documents, the PHD
management and chief accountant will review the correctness of financial transactions, performance and
compliance of contract agreements. And review on each eligible OD monthly financial report for
replenishment before provide the consolidate report for replenishment to MOH (HSSP Secretariat). Eligible
ODs need to submit their monthly financial report for replenishment through PHD for review by not later
than 10 days after each month ends (Annex A2.12). PHD will review and consolidate in “the Monthly
Consolidated Report for the province” (Annex A2.11) for financial management information record and for
replenishment from the MOH (HSSP Secretariat).
Monthly Financial Reports of PHD (for PHD’s own expenditures)
For Pooled and Counterpart Fund
(a) Covering letter (Annex A2.20)
(b) Statement for Reconciliation of PHD Imprest Account (Pooled Fund and RGC Counterpart Fund)
(Annex-A2.1a of PHD )
(c) Copies of Bank Statements (for both Bank Accounts of Pooled and Counterpart fund)
(d) Statement of Expenditures (SOE) (Annex-A2.2)
(e) Monthly Progress Expenditure Register (Annex-A2.6)
(f) Budget Status by Component and Category –Pooled Fund (Annex- A2.8a)
(g) Budget Status by component and Category –Counterpart Fund (Annex A2.9)
(h) Bank Register – under each source of funds
(i) Petty Cash Book and Cash Count Sheet (copy)
(j) Advance register – under each source of funds
For discrete Donor Funds
(a) Covering letter
(b) Statement for reconciliation of PHD Imprest Account (Separate statement for each discrete donor)
(c) Copies of Bank Statements
(d) Monthly Progress Expenditure Register (Separate register for each donor’s fund) Annex A2.6
(e) Budget Status by component and Category (Separate registers for each donor’s fund) Annex A2.8b
(f) Bank Register
(g) Petty Cash Book and Cash Count Sheet (copy)
(h) Advance register – under each source of funds
For Financial Information Report
(a) Global Financial Information Report (Annex –A2.11)
One copy of PRH monthly financial reports (pooled, counterpart fund and discrete funds) shall be forwarded
to Internal Auditor for the purpose of subsequent audit.
All original supporting financial documents will be kept at PHD and eligible ODs for subsequent reviews and
audits.
18.2.3 NON-SDG PROVINCES
Same mechanism as SDG provinces except that financial management function will be centrally managed by
PHD for the whole province. The PHD is also responsible for disbursement to ODs/HCs/RHs, on activity
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 108 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
base or reimbursement, and does the accounting and reporting as well as maintains the supporting documents
for the payments made by that below levels for subsequent reviews and audits.
Months end financial report and replenishment
The PHD accountant shall record and update all PHD’s financial transaction everyday. Not later than 20 days
following the end of each month, the PHD shall forward the consolidated monthly financial reports for all
sources of funds received under HSSP II to MOH (HSSP Secretariat) for replenishment.
(a) Statement for reconciliation of PHD Advance Accounts (separate bank accounts for pooled,
counterpart and discrete donor funds)
(b) Statement of Expenditures (SOE) (separate SOE for each source of funds)
(c) Copies of Bank Statements (for pooled, counterpart and discrete donor funds)
(d) Monthly Progress Expenditure Register (Separate register for each source of funds)
(e) Budget Status by component and Category (Separate registers for each donor’s fund and pooled
funds)
(f) Bank Register – under each source of funds
(g) Petty Cash Book and Cash Count Sheet - under each source of funds (copy)
(h) Advance register – under each source of funds
18.3 ELIGIBLE SDG ODS
Establishment of bank accounts
Based on Management and financial assessment result, the following US dollar Bank Accounts shall be
opened at the eligible SDG ODs.
(1) Pooled Advance Account at Local Commercial Bank
(2) Counterpart Advance Account at Local Commercial Bank (same bank; different accounts)
(3) Discrete Advance Account (if any) at Local Commercial Bank (same bank, different accounts for
each discrete funds)
Authorized Signatories
The authenticated specimen signatures of the authorised signatories are required to be submitted to the MEF,
Pooled donors and other discrete donors or lenders before any disbursements can take place. Any changes of
Authorised Signatories must be notified to the MEF and respective donors.
The official authorized signatories of the cheque withdrawals and other pertinent documents shall be any two
of the following:
- OD Director
- OD Deputy Director
- Technical Officer
The signatory has responsibility to ensure proper accessibility of the fund transfer request and reliability of the
supporting documents. However for control purposes, there must two or three authorised signatories. Two
of them are to sign on the cheque.
The responsibilities of Accountant and Cashier should be clearly segregated.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 109 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Fund flow
With the same arrangement as PHD level, the funds requirement for all eligible ODs will be transferred
directly from respective account held by MOH (HSSP Secretariat) to respective OD’s Bank Account. (Please
see Fund flow diagram in Section 1.5).
Discrete Donor Funds (If the discrete donor funds are allowed to transfer below PHD level and where
applicable)
The fund flow of the discrete donor funds will be the same principle of the Pooled fund flow. The fund
requirement amount will be transferred from discrete donor fund account held by MOH (HSSP Secretariat)
to discrete donor funds account of the respective eligible ODs’ accounts.
Subsequent replenishment will be made through the actual expenditure reported in the consolidated monthly
financial report to MOH (HSSP Secretariat). Each eligible ODs submits their monthly financial report for
replenishment to PHD by not later than 10 days after each month ends. PHD will review and do the
consolidation and make a request for replenish for their province to MOH (HSSP Secretariat) by not later
than 15 days after each month ends. MOH (HSSP Secretariat) will review and replenish directly to the
respective bank account of PHD and eligible ODs. (Refer to below for the list of report required).
OPERATION OF PETTY CASH, PAYMENT FROM BANK ACCOUNTS, AND ADVANCE
The same procedures as stated above for PHD will also applied for the SDG eliAll the accounting mechanism
and formats in OD’s and Provincial Referral Hospital are the same as PHD level.
FINANCIAL RECORDING, ACCOUNTING MECHANISM AND FORMATS
All the accounting mechanism and formats in OD’s and Provincial Referral Hospital are the same as PHD
level.
Months end financial report and replenishment
The accountant of each eligible OD records all HCs’ and district referral hospital expenditures and update the
financial records daily. At the end of the month, the OD accountant prepares the monthly financial reports.
Not later than 10 days following the end of each month. The OD submits the monthly financial report as
listed below to PHD by not later than 10 after each month ends. The OD will prepare “ Monthly Global
Financial Information Report” (Annex-A 2.12) and forward to PHD for the financial management
information which combined for all source of funds available at their ODs including those which are not
channel through HSSP II,.
(a) Covering Letter (Annex-A2.21)
(b) Statement for Reconciliation of Advance Account (Pooled/Counterpart/Discrete Funds) (Annex-
A 2.1a of OD)
(c) Copies of Bank Statements (for Pooled/Counterpart/Discrete Accounts)
(d) Statement of Expenditures (SOE) (Annex-A2.2)
(e) Monthly Progress Expenditure Register (Annex-A2.7)
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 110 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
(f) Budget Status by Component and Category –Pooled Fund (Annex- A2.8a)
(g) Budget Status by component and Category –Counterpart Fund (Annex A2.9)
(h) Bank register – under each source of funds
(i) Petty Cash Account and cash count sheet - under each source of funds (copy)
(j) Advance register – under each source of funds.
For Financial Information Report
(a) Global Financial Information Report (Annex –A2.12)
Discrete Donor Funds (If the discrete donor funds are allowed to transfer below PHD level, and where
applicable)
Month end financial reporting system and formats will be the same as Pooled and counterpart fund system.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 111 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
SECTION 19
ANNEXURES
19.1 ABBREVIATIONS
ADF
AOP
CAS
CCA
CDC
CG
CL
CNM
CSP
CSPU
DA
DBF
DIC
DIFD
DP
DPs
DPHI
DV
EA
EES
FMG
GL
GMS
HC
HSSP
ICB
IDA
IFRs
IS
M&E
MEF
MOH
MOP
MOU
NAA
NBC
Agence Francais Development
Annual Operating Plan
Country Assistance Strategy
Counterpart Contribution Account
Council for the Development of Cambodia
DPs Consultative Group
Commitment Letter
National Centre for Malaria
Country Strategy & Program
Country Strategy & Program Update
DPs Agency
Department of Budget & Finance (MOH)
Department of Investment and Cooperation
Department for International Development (UK)
Direct Payment
Development Partners
Department of Planning & Health Information (MoH)
Disbursement Voucher
Executing Agency
Estimated Expenditure Statement
Financial Management Group
General Ledger
Greater Mekong Sub-region
Health Centre
Health Sector Support Program
International Competitive Bidding
International Development Association (World Bank)
Quarterly Interim Unaudited Financial Report
Issuance Slip
Monitoring & Evaluation
Ministry of Economy and Finance
Ministry of Health
Ministry of Planning
Memorandum of Understanding
National Audit Authority
National Bank of Cambodia
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 112 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
NCB
National Competitive Bidding
NCHADS National Centre for HIV Aids Dermatology & STI
NGO
Non Government Organisation
NP
National Program
NPD
National Program Director
OD
Operational District
PAM
Program Administration Manual
PAS
Program Accounting System
PCB
Petty Cash Book
PCPV
Petty Cash Payment Voucher
PCR
Program Completion Report
PHD
Provincial Health Department
PIP
Public Investment Program
PMU
Program Management Unit
PRH
Provincial Referral Hospital
PSC
Program Steering Committee
PV
Payment Voucher
RGC
Royal Government of Cambodia
RH
Referral Hospital
RTC
Regional Training Centre
SMLD
Semi Monthly Listing of Loan Disbursements
SOE
Statement of Expenditures
SSC
Staff Selection Committee
TA
Technical Assistance
TOR
Terms of Reference
TWG
Technical Working Group
UNFPA United Nations Population Fund
WA
Withdrawal Application
WB
World Bank
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 113 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Organisational Structure
19.1.1 FINANCIAL MANAGEMENT GROUP
Attachment -1
MINISTER
OF HEALTH
PROGRAM DIRECTOR
Program Coordinator
HSSP Secretariat
FINANCIAL MANAGEMENT GROUP
(Headed by Chief Financial Management
Officer, Assisted by Senior Financial
Management Officers
Financial Management
Advisor
SENIOR FINANCE
OFFICER
(Pooled Account)
SENIOR FINANCE
OFFICER
(Discrete Accounts)
Finance Ofiicer (2
ppls)
Finance Officer (2
ppls)
Finance Officer
(GMS)
Cashier
Attachment -2
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 114 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
NATIONAL PROGRAM
Please refer to FM organisation chart of each National Program
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 115 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
19.1.3 FINANCE UNIT AT PROVINCIAL LEVEL
Attachment -3
Provincial Health
Director
Chief of Finance
Accountant
(Pooled Account)
Accountant
(Discrete Account)
Cashier
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 116 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
19.1.4 FINANCE UNIT AT DISTRICT LEVEL
Attachment -4
OD Director
(
19.2 NONO
Chief of Finance (and
administration)
Senior Accountant
Accountant
Cashier
Adm assistant
Logistic
Officer
Note: The term of reference as provided in the below attachment is covered only for the
FM function position.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 117 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Attachment -5
JOB DESCRIPTIONS
19.2.1 JOB DESCRIPTIONS – CENTRAL LEVEL (HSSP SECRETARIAT)
Position: Financial Management Group Leader
Terms of Reference of
Chief Financial Management Officer
This position is a national position who will report to the Program Director through the Program Coordinator.
The main responsibilities are:
• Manage the Program funds according to the financial management manual and the requirements of
the Ministry of Economy and Finance and the Pooled and Non-pooled funds donors.
• Review and recommend the Program Coordinator/Program Director on the day-to-day operating
expenses and other financial transactions.
• In collaboration with the Unit Chiefs prepare annual budget plan for the Program and monitor the
expenditure using the DPs’ required format.
• Ensure sound financial control, documentation and flow of information of Program expenditures
incurred at provincial level and the national programs;
• Ensure proper authorization and accounting of operating costs which will be classified by nature of
expenses and sources of funding and by categories;
• Prepare withdrawal application for submitting to the respective DPs through MEF and follow-up the
payment.
• Timely consolidation of IFR report and disseminate to all concern parties on a timely fashion, and
follow up subsequent replenishment from all DPs and MEF.
• Manage all accounting staff and assist to develop a clear responsibility for each staff to avoid
overlapping task and to ensure achievement of best performance.
• Manage the Program fixed asset in compliance with the government and DPs policies.
• Provide training to the Program accounting staff of all levels and conduct regular supervision
• Assist the internal and external auditors to conduct audit by furnishing them appropriate documents,
assist in identifying location of assets and facilitate communication with the concerned
units/departments for the audit purpose.
.
Desired minimum qualifications for this assignment are:
1. Must be conversant with the financial management of the World Bank / UN and the Royal
Government of Cambodia.
2. Have at least 7 years experience in the DPs funded financial management.
3. Recognized Graduate level qualifications (Bachelor or Master degree).
4. Good communications skills in English.
5. Good knowledge of relevant computer software applications for the financial management.
========================================================================
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 118 of 144

HSSP Financial Policies & Procedures Manual
Attachment -6
_____________________________________________________________________________________
Position: Financial Management Advisor
Terms of Reference of
Financial Management Advisor
(International Consultant)
This position is an international position will report to the Program Director through the HSSP Financial Management Group on the
Program related activities and to the Director of the Department of the Budget and Finance of the MoH on the activities related to the
National Budget.
The main responsibilities are:
a. Health Sector Support Program
- Review and revise the financial management manual to reflect the actual implementation and the newly
adopted Standard Operation Procedure for external assisted Program.
- Provide advice on proper financial reporting format in compliance with the requirements of DPs.
- Work in close collaboration with the firm providing Internal Audit technical services, to ensure
management of eligible expenditures in accordance with budget plan.
- Work in close collaboration with the FMIP consultant to strengthen the financial management capacity
and provide oversight, monitoring and supervision of the DGAF financial management staff; and
establish a safeguard mechanism for the program assets. And to building capacity at all level in the
PHD to maintain cashbooks, undertake basic cash flow forecasting (at OD level), and perform basic
financial reporting requirement for the facility, OD and PHD.
b. National Budget
- Assist the MOH to prepare, implement, and monitor PFM indicator number 4 for services delivery
units to receive an increasing proportion of funds targeted at their levels in timely manner.
- Help MOH with priority business, including the preparation of the next Medium-Term Expenditure
Framework, Program Budgeting, Public Investment Plan or other relevant documents as required.
- Assist in following up the disbursement of PAP funds, especially to the contracting districts.
- Designing an appropriate financial management system at provincial, district, and hospital levels and
help to implement the system in selected PHDs, with due attention to the internal control.
- Prepare and conduct financial management training at basic level for administrators of referral
hospitals.
- Build capacity of MOH staff through on-the-job and regular financial management training.
- Prepare monthly report on the progress of national budget disbursement and other relevant matters
for the DBF Director.
Expected Outputs and Deliverables:
- Revised HSSP Financial Management Manual.
- Specific periodic progress report of the PFM.
- Quality MTEF, Budgeting, PIP.
- Financial Management Manuals (National Budget) for Provinces, ODs and Hospitals.
- Training schedule and trained staff.
Desired minimum qualifications for this assignment are:
- Must be conversant with the financial management of the World Bank / Asian Development Bank
and the Royal Government of Cambodia.
- Have at least 7 years experience in the DPs funded financial management.
- Recognized Graduate level qualifications with tertiary qualification in financial management or
accountancy.
- Good communications skills in English.
- Good knowledge of relevant computer software applications for the financial management.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 119 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Position: Senior Finance Officer (Pooled Account) – Central Level
Attachment -7
TERMS OF REFERENCE FOR
Senior Financial Management Officer (Pooled Account)
These are full-time positions and will report to the Leader of the Financial Management Group (FMG). The Senior
Finance Officer will be based at the HSSP Secretariat, Ministry of Health and required extensive travel to provinces.
The Senior Finance Officer will be responsible for:
1. Keeping the accounting files (Pooled Account) updated regularly following the HSSP accounting
procedures;
2. Follow-up of disbursements by financing institutions and Government counterpart contributions;
3. Assist the Leader of the FMG with preparation of documents related to the payments to staff,
implementing units, and other concerned agencies.
4. Assist the Leader of FMG to manage the Program Pooled fund according to the financial management
manuals and the requirements of the Ministry of Economy and Finance and DPs
5. Assist the Leader of FMG to provide training to Program accounting staff of all levels.
6. Check bill of quantities of civil work contractors and prepare payment base on completion following the
terms of contract;
7. Reconcile bank accounts with bank statements;
8. Reconcile petty cash accounts;
9. Assist the Leader of the FMG to prepare financial and accounting information as requested by the
Program Director;
10. Assist the Leader of the FMG to prepare Annual Operational Plan of Pool funding sources;
11. Draft application for withdrawal for Pooled fund direct payments or replenishments;
12. Timely review and consolidate all pool fund information from each implementation unit of central and
provincial enable to produce quarterly IFR report.
13. Assist the Leader of the FMG to prepare quarterly pooled fund budget plan and estimate cash flow;
14. Conduct regular visit to provinces to cross-check the accounting records;
15. Supervise and provide technical supports through on-the-job training to Program accountants/accounting
assistants of all the implementing units;
16. Assist the Leader of the FMG to create accounting format for new loan/grant and provide training to
newly recruited staff;
17. Assist the internal and external auditors to conduct audit by furnishing them appropriate documents, assist
in identifying location of assets and facilitate communication with the concerned units/departments for the
audit purpose.
18. Any other accounting tasks that may be assigned by the Leader of the FMG or Program Director.
Minimum qualifications
• Cambodian National;
• Excellent spoken and written English;
• Bachelor degree in Accounting or Business Administration or equivalent degree;
• At least 5 years of work experience in the accounting field;
• Computer literacy, thorough knowledge of spreadsheet and database programs;
• Experience with government and/UN/World Bank accounting procedures is an asset;
• Willingness to undertake extensive field travel to the provinces.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 120 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Position: Senior Finance Officer (Discrete Accounts) – Central Level
TERMS OF REFERENCE FOR
Senior Financial Management Officer (Discrete Accounts)
Attachment -8
These are full-time positions and will report to the Leader of the Financial Management Group (FMG). The Senior
Finance Officer will be based at the HSSP Secretariat, Ministry of Health and required extensive travel to provinces.
The Senior Finance Officer will be responsible for:
1. Keeping the accounting files (Discrete Accounts) updated regularly following the HSSP II accounting
procedures;
2. Follow-up of disbursements by financing institutions and Government counterpart contributions (if
necessary);
3. Assist the Leader of the FMG with preparation of documents related to the payments to staff,
implementing units, and other concerned agencies.
4. Assist the Leader of FMG to manage the Program Discrete funds according to the financial management
manuals and the requirements of the Ministry of Economy and Finance and DPs
5. Assist the Leader of FMG to provide training to Program accounting staff of all levels.
6. Check bill of quantities of civil work contractors and prepare payment base on completion following the
terms of contract;
7. Reconcile bank accounts with bank statements for all Discrete Accounts;
8. Reconcile petty cash accounts;
9. Assist the Leader of the FMG to prepare financial and accounting information as requested by the
Program Director;
10. Assist the Leader of the FMG to prepare Annual Operational Plan of Discrete funding sources;
11. Draft application for withdrawal for Discrete funds direct payments or replenishments;
12. Timely review and consolidate all discrete funds information from each implementation unit of central and
provincial enable to produce quarterly IFR report.
13. Assist the Leader of the FMG to prepare quarterly discrete fund budget plan and estimate cash flow;
14. Conduct regular visit to provinces to cross-check the accounting records;
15. Supervise and provide technical supports through on-the-job training to Program accountants/accounting
assistants of all the implementing units;
16. Assist the Leader of the FMG to create accounting format for new loan/grant and provide training to
newly recruited staff;
17. Assist the internal and external auditors to conduct audit by furnishing them appropriate documents, assist
in identifying location of assets and facilitate communication with the concerned units/departments for the
audit purpose.
18. Any other accounting tasks that may be assigned by the Leader of the FMG or Program Director.
Minimum qualifications
• Cambodian National;
• Excellent spoken and written English;
• Bachelor degree in Accounting or Business Administration or equivalent degree;
• At least 5 years of work experience in the accounting field;
• Computer literacy, thorough knowledge of spreadsheet and database programs;
• Experience with government and/UN/World Bank accounting procedures is an asset;
• Willingness to undertake extensive field travel to the provinces.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 121 of 144

HSSP Financial Policies & Procedures Manual
Attachment -9
_____________________________________________________________________________________
Position: Finance Officer
TERMS OF REFERENCE
Finance Officer (2 positions)
Pooled Account
The Finance Officer will work with the Financial Management Group (FMG) of the HSSP Secretariat and
report to the Senior Finance Officer and the Leader of Financial Management Group. He/She will be
assigned specifically to disbursements of funds from Pooled Fund.
Specific Duties:
1. Assist in document preparation for Program disbursements.
2. Assist in following-up disbursement requests with MEF.
3. Assist with preparation of Program staff payroll.
4. Assist in maintaining Program accounting files (Pooled Accounts) in accordance with accounting
procedures.
5. Assist in review and verification of provincial petty cash expenditure statements.
6. Assist in conducting spot visits to Provincial Health Department to inspect petty cash registers and
procedures.
7. Assist in reconciliation of bank accounts (MOH and provincial) with statement.
8. Assist in disbursement of HSSP petty cash funds as authorized.
9. Assisting the financial audit team in reviewing accounting documents at central level and
accompanying them to provinces for reviewing accounting documents and controlling fixed assets.
10. Assisting the accountant to prepare financial and accounting information as requested by the HSSP
Coordinator and the Chief of Financial Officer;
11. Assist the internal and external auditors to conduct audit by furnishing them appropriate documents,
assist in identifying location of assets and facilitate communication with the concerned
units/departments for the audit purpose.
12. Any other functions assigned by the Senior Finance Officer and Leader of the Financial Management
Group.
Qualifications:
1. Bachelor's Degree in Accounting or equivalent.
2. Accountancy Certification from an accredited financial / accounting institute.
3. At least 3 years prior experience in accounting.
4. Knowledge of QuickBooks pro accounting software, Microsoft Excel and Microsoft World.
5. Proficiency in written and spoken English.
6. Willing and able to undertake periodic field travel.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 122 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Attachment -10
TERMS OF REFERENCE
Finance Officer (2 positions)
Discrete Accounts
The Accounting Assistant will work with the Financial Management Group (FMG) of the Ministry of Health,
Department of Budget and Finance and report to the Senior Finance Officer and Leader of Financial
Management Group. They will be assigned specifically to disbursements of funds from discrete donors.
Specific Duties:
1. Assist in document preparation for Program disbursements.
2. Assist in following-up disbursement requests with MEF and DPs
3. Assist with preparation of Program staff payroll.
4. Assist in maintaining Program accounting files in accordance with Discrete Donors accounting
procedures
5. Assist in review and verification of provincial petty cash expenditure statements
6. Assist in conducting spot visits to Provincial Health Department to inspect petty cash registers and
procedures.
7. Assist in reconciliation of bank accounts (MOH and provincial) with statement
8. Assist in disbursement of HSSP petty cash funds as authorized.
9. Assisting the financial supervision team in reviewing accounting documents at central level and
accompanying them to provinces for reviewing accounting documents and controlling fixed assets.
10. Assisting the accountant to prepare financial and accounting information as requested by the HSSP
Coordinator and the Financial Officer;
11. Assist the internal and external auditors to conduct audit by furnishing them appropriate documents,
assist in identifying location of assets and facilitate communication with the concerned
units/departments for the audit purpose.
12. Any other functions assigned by the Leader of the Financial Management Group.
Qualifications:
1. Bachelor's Degree in Accounting or equivalent
2. Accountancy Certification from an accredited financial / accounting institute
3. At least 3 years prior experience in accounting
4. Knowledge of QuickBooks pro accounting software, Microsoft Excel and Microsoft World
5. Proficiency in written and spoken English
6. Willing and able to undertake periodic field travel
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 123 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Cashier
Attachment -11
The Cashier will work with the Financial Management Group (FMG) of the Ministry of Health, Department
of Budget and Finance and report to the Leader of Financial Management Group. They will be assigned to
handle the petty cash for all donor funds at the HSSP Secretariat.
Duties and Responsibilities
1. Petty cash management
2. Responsible for day to day recording of transactions in the Cash book
3. Preparation and processing of Cheque and petty cash payment vouchers.
4. Prepare count sheets and reconciliation, replenish fund and prepare replenishment
report on a timely basis.
5. Coordination with the Senior Finance Officers and Finance Officers in matters day to day
routine of financial activities of the Secretariat
6. Assist the internal and external auditors to conduct audit by furnishing them appropriate
documents, assist in identifying location of assets and facilitate communication with the
concerned units/departments for the audit purpose
7. Any other functions assigned by the Leader of the Financial Management Group as
deemed necessary.
Qualifications:
1. At least 5 years prior experience in cash handling function
2. Knowledge of QuickBooks pro accounting software, Microsoft Excel and Microsoft World
3. Proficiency in written and spoken English
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 124 of 144

Attachment -12
HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
19.2.2 JOB DESCRIPTIONS - PROVINCIAL LEVEL
Chief of Finance
Reporting System : Chief of Finance is directly reporting and accountable to the PHD and
functionally reporting to the PHD Director. He/she is also obliged to comply all the mandate
requirements and standard operating procedures of the HSSPII SOP/FMM.
Accountability: Monthly, quarterly Reports for provincial level.
Duties and Responsibilities:
1. His main responsibility is the timely preparation and submission of monthly of
Financial Management Report consolidated for their whole province to the
HSSP/FMG.
2. Overall management of finances, accounting and accounts records, according to
“Financial Policies & Procedures Manual” of HSSP2 Program.
3. Responsible for day to day financial activities of the Program, such as of monitoring
of bank accounts, checking of all disbursement vouchers,
4. Adequate supervision of accounting staff in terms of delegation of duties and
responsibilities.
5. Assure adequate safekeeping of cash and checks, and fixed assets.
6. Responsible for monitor, reviewing and consolidating of both PHD and OD/PRH
budget and monthly financial reports. Review monthly bank reconciliation
7. Timely submission of liquidation and replenishment of
Advance/Imprest/Designated for all sources of funds including below PHD levels
8. Responsible for asset management including district level
9. Assist the internal and external auditors to conduct audit by furnishing them
appropriate documents, assist in identifying location of assets and facilitate
communication with the concerned units/departments for the audit purpose
====================================================================
Accountant (Pooled Account)
Attachment -13
Reporting System : He/she is functionally reporting to the Chief if Finance. He is also obliged
to comply all the mandated requirements and standard operating procedures of the HSSP
II/Finance Unit of provincial Level.
Duties and Responsibilities
1. Timely submission of preparation of monthly of financial statements of Pooled Fund Account.
2. Responsible for day to day recording of transactions in the books of account(see books of
account/entry of Accounting system of this Manual)
3. Preparation and processing of Cheque payment vouchers.
4. Filing of CPV on per month basis
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 125 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
5. Ensures that all the project expenditures which are paid from Pooled Account are
properly authorized in accordance with established financial procedures, completeness
of proper supporting documents and aligned with allocation of budget and agreements.
6. Ensure all the accounting transaction are properly and timely recorded in the accounts
book .
7. Closed accounting records on a monthly basis, verify trial balance for accuracy of record
keeping and generate monthly financial report. Perform monthly bank reconciliation
8. Assist the internal and external auditors to conduct audit by furnishing them appropriate
documents, assist in identifying location of assets and facilitate communication with the
concerned units/departments for the audit purpose
9. Other functions deemed necessary for the Finance Units as required by the Chief of Finance
===================================================================
Attachment -14
Accountant (Discrete Accounts)
Reporting System : He/she is functionally reporting to the Senior Accountant and Chief if
Finance. He/She is also obliged to comply all the mandated requirements and standard
operating procedures of the HSSP/Finance Unit of provincial Level.
Duties and Responsibilities
1. Timely submission of preparation of monthly of financial statements of discrete funds accounts.
2. Responsible for day to day recording of transactions in the books of account(see books of
account/entry of C-Accounting system of this Manual)
3. Preparation and processing of Cheque payment vouchers.
4. Filing of CPV on per month basis
5. Ensures that all the project expenditures which are paid from related discrete Advance
Account are properly authorized in accordance with established financial procedures,
completeness of proper supporting documents and aligned with allocation of budget and
agreements.
6. Ensure all the accounting transaction are properly and timely recorded in the accounts
book .
7. Closed accounting records on a monthly basis, verify trial balance for accuracy of record
keeping and generate monthly financial report. Perform monthly bank reconciliation
8. Assist the internal and external auditors to conduct audit by furnishing them appropriate
documents, assist in identifying location of assets and facilitate communication with the
concerned units/departments for the audit purpose
9. Other functions deemed necessary for the Finance Units as required by the Senior Accountant
and Chief of Finance
Attachment -15
Cashier
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 126 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Reporting System : He/she is functionally reporting to the Senior Accountant and Chief of
Finance. He/she is also obliged to comply all the mandatory requirements and standard
operating procedures of the HSSP II /Finance Unit of provincial Level.
Duties and Responsibilities
1. Petty cash management for all source of funds
2. Responsible for day to day recording of transactions in the Cash book
3. Preparation and processing of Cheque and petty cash payment vouchers.
4. Coordination with the PPFO in matters day to day routine of financial activities of the
district
5. Prepare count sheets and reconciliation, replenish fund and prepare replenishment
report on a timely basis.
6. Assist the internal and external auditors to conduct audit by furnishing them appropriate
documents, assist in identifying location of assets and facilitate communication with the
concerned units/departments for the audit purpose
7. Other functions deemed necessary for the Finance Units as required by the Senior
Accountant and Chief of Finance.
================================================================
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 127 of 144

HSSP Financial Policies & Procedures Manual Attachment -16
_____________________________________________________________________________________
Job Descriptions –District Level
Chief of Finance (OD)
Reporting System : Chief of Finance is directly reporting and accountable to the OD and
functionally reporting to the Chief of OD. He/she is also obliged to comply all the mandated
requirements and standard operating procedures of the HSSP II/Finance Unit of District Level.
Accountability: Monthly, quarterly FMR for District level.
Duties and Responsibilities:
1. His main responsibility is the timely preparation and submission of monthly of
Financial Management Report/FMR to the PHD.
2. Overall management of finances, accounting and accounts records, according to
“Financial Policies & Procedures Manual” of HSSP2 Program.
3. Responsible for day to day financial activities of the Program, such as of monitoring
of bank accounts, checking of all disbursement vouchers,
4. Adequate supervision of accounting staff in terms of delegation of duties and
responsibilities.
5. Assure adequate safekeeping of cash and checks, and fixed assets.
6. Responsible for monitor, reviewing and consolidating of OD’s budget and monthly
financial reports.
7. Timely submission of liquidation and replenishment of
Advance/Imprest/Designated for all sources of funds.
8. Assist the internal and external auditors to conduct audit by furnishing them
appropriate documents, assist in identifying location of assets and facilitate
communication with the concerned units/departments for the audit purpose
9. Responsible for asset management of OD
=================================================================
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 128 of 144

HSSP Financial Policies & Procedures Manual Attachment -17
_____________________________________________________________________________________
Senior Accountant (OD)
Reporting System : He/she is functionally reporting to the Chief of Finance. He is also
obliged to comply all the mandated requirements and standard operating procedures of the
HSSP II/Finance Unit of District Level.
Duties and Responsibilities
1. Responsible timely production of monthly financial statements of all sources of funds
accounts according to requirement of the FMM.
2. Responsible timely production of “Global Financial Information report for OD” which
has included all sources receipts and payments such as Health Equity Fund, user fees,
National budget.
3. Day-to-day close supervision and checking with accountant on managing of financial
recording. Review monthly bank reconciliation
4. Timely monitor and review on all sources of funds’ budget and up to date program
expenditures.
5. Supervise to record and systematic filing of all financial documents.
6. Responsible to prepare yearly AOP for OD and below level.
7. Assist the internal and external auditors to conduct audit by furnishing them appropriate
documents, assist in identifying location of assets and facilitate communication with the
concerned units/departments for the audit purpose
8. Other functions deemed necessary for the Finance Units as required by the MOH and
donors.
=================================================================
Attachment -18
Accountant (OD)
Reporting System : He/she is functionally reporting to the Chief if Finance. He is also obliged
to comply all the mandated requirements and standard operating procedures of the
HSSP/Finance Unit of District Level.
Duties and Responsibilities
1. Assist timely submission of preparation of monthly of financial statements of all sources of funds
accounts.
2. Responsible for day to day recording of transactions in the books of account
3. Preparation and processing of Cheque payment vouchers.
4. Filing of CPV on per month basis
5. Ensures that all the project expenditures which are paid from respective Advance
Accounts are properly authorized in accordance with established financial procedures,
completeness of proper supporting documents and aligned with allocation of budget and
agreements.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 129 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
6. Ensure all the accounting transaction are properly and timely recorded in the accounts
book .
1. Closed accounting records on a monthly basis, verify trial balance for accuracy of record keeping
and generate monthly financial report. Perform monthly bank reconciliation
2. Assist the internal and external auditors to conduct audit by furnishing them appropriate
documents, assist in identifying location of assets and facilitate communication with the
concerned units/departments for the audit purpose
3. Other functions deemed necessary for the Finance Units as required by the Chief of Finance.
=====================================================================
Cashier
Attachment -19
Reporting System : He/she is functionally reporting to the PFMO. He/she is also obliged to
comply all the mandatory requirements and standard operating procedures of the
HSSP/Finance Unit of District Level.
Duties and Responsibilities
1. Petty cash management for all source of funds
2. Responsible for day to day recording of transactions in the Cash book
3. Preparation and processing of Cheque and petty cash payment vouchers.
4. Coordination with the Chief of Finance/Senior Accountant in matters day to day routine
of financial activities of the district
5. Prepare count sheets and reconciliation, replenish fund and prepare replenishment
report on a timely basis.
6. Assist the internal and external auditors to conduct audit by furnishing them appropriate
documents, assist in identifying location of assets and facilitate communication with the
concerned units/departments for the audit purpose
7. Other functions deemed necessary for the Finance Units as required by the PPMO.
=====================================================================
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 130 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
EXTERNAL AUDIT FIRM TERMS OF REFERENCE
Attachment -20
Purpose of the Audit
Ministry of Health is seeking the services of a qualified firm to conduct an annual audit for each
financial year (January to December 31) from (year) to (year) of the financial statements of the
Second Health Sector Support Program (HSSP II or the Program). The successful firm will enter
into a contract with Ministry of Health.
The financial statements audit is primarily designed to provide assurance that the annual
financial statements have been prepared in accordance with the relevant legal and adopted
accounting standards and give a true and fair view of the financial performance and position of
the Program. In addition, the audit will also assess compliance with relevant laws, regulations
and the financing agreements, use of funds for proper purposes particularly as defined in the
financing agreements, adequacy of the systems of internal control and mechanisms to prevent
and detect fraud.
The Program is responsible for maintaining the financial records for the Program and preparing
the annual financial statements which will be audited by the selected firm. It is accepted that the
external audit is not a substitute for the Programs managements own responsibility for putting
into place proper arrangements to ensure that the Programs business is conducted in
accordance with the law and proper standards, and that public money is safeguarded and
properly accounted for an used economically, efficiently and effectively. Program management
recognizes that because of the test nature and other inherent limitations of an audit, together
with the inherent limitations of any accounting and internal control system, there is an
unavoidable risk that during the course of the audit even some material misstatements may
remain undiscovered.
The Program management accepts its responsibility for the preparation of financial statements
including adequate disclosure. This includes the maintenance of adequate accounting records
and internal controls, the selection and application of accounting policies, and the safeguarding
of the assets of the Program. As part of the audit process, Program management will provide to
the auditor written confirmation concerning representations made in connection with the audit.
Background
The Program will be implemented under a deepened sector wide approach; an evolution from
the Sector Wide Management (SWiM) approach under which the current Health Sector Support
Project (HSSP) is being implemented (2003-2008). The Program seeks to establish streamlined
and programmatic funding modalities to more effectively channel development assistance and
increase harmonization and alignment of Development Partners (DPs) through application of
common management arrangements to both pooled and discrete contributions. The Program
aligns with key cross-cutting HSP2 strategies and relies, to the extent possible, on Government
systems. Currently this comprises the MOH joint planning process and joint monitoring
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 131 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
framework, and as systems are strengthened will extend to financial management and auditing
arrangements. The Project will support a sub-set of these activities through the pooled account
based upon the Government’s AOP process.
Program components
The Program has a health system strengthening focus, with components that are aligned to the
Government's HSP2). It includes: (a) Strengthening Health Service Delivery through (i) the
provision of Service Delivery Grants and contracting for health services at provincial level and
below; and (ii) strengthening health services management supervision and public health
functions at provincial and district level; and (iii) investments for the improvement,
replacement, and extension of the health service delivery network. (b) Improving Health
Financing which will support (a) health protection for the poor through the consolidation of
health equity funds under common management and oversight arrangements and expansion of
health equity fund coverage; and (ii) supporting the development of health financing policies
and institutional reforms. (c) Strengthening Human Resources will focus on (i) strengthening
pre- and in-service training and supporting enrollment where shortfalls exist; (ii) strengthening
human resource management in the Ministry of Health; and (iii) support the Merit Based
Performance Incentive scheme for health managers and key technical staff participating in the
implementation of the HSP2 at central and provincial level. (d) Strengthening Health System
Stewardship Function by supporting (i) development of policy packages identified,
strengthening the institutional capacity (in particular meeting the demands from
Decentralization and Deconcentration); (ii) private sector regulation and partnerships; (iii)
supporting governance and stewardship functions of the national programs and centers
overseeing the three HSP2 strategic programs; and (iv) strengthening community participation.
Funding Sources
The Program intends to support the Government's AOPs through a pooled account with
common management and reporting arrangements. The IDA credit will contribute to a pooled
account in the MOH. Financing from DFID and AusAID will contribute to the pooled account
through a Multi-Donor Trust Fund Arrangement with the World Bank. The indicative resource
envelope available for the pool is US$110 million (equivalent) over the next 5 years (exclusive of
Government contribution). This comprises US$30 million IDA financing, US$50 million from
DFID and an initial allocation of US$30 million from AusAID for the first two years of Project
implementation. UNFPA, UNICEF and AFD have also expressed their willingness to join the
pooled account and/or common management arrangements for their discrete fund accounts in
the MOH and will confirm their contribution annually based on the Program’s content and
availability of untied funds.
Program implementation arrangements
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 132 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Policy guidance and implementation oversight of HSP2 will be provided by the HSSC, chaired
by the Minister of Health with membership comprising MOH’s senior management, and
representatives from MEF and MOP. This body is also responsible for approving the
consolidated AOP. The MOH will establish a Joint Program Management Group to manage
and oversee the implementation of Program activities funded from the Pooled Account. This
Group, chaired by an appointed Secretary of State, will meet at a minimum on a quarterly basis
to review progress reports, interim unaudited financial reports, semi-annual internal audit
reports and annual audits, and recommend the release of funds from the pooled account against
satisfactory financial reports, cash forecast and any agreed triggers. Membership of the Group
will be determined by the Minister of Health and is expected to include staff at the Director
General, or Deputy Director General, level from: (a) Administration and Finance; (b) Health;
and Health Department level from (a) Department of Budget and Finance; (b) Internal Audit
Department; (c) Department of Planning and Health Information; (d) Procurement Unit; (e)
Department of Personnel; and, (f) Department of International Coordination. Participants
external to MOH will include a representative from the MEF, CAR, and a representative from
each of the pooling partners.
The implementation arrangements will have two phases – the first phase will follow
arrangements established for HSSP and the second phase, expected to start no later than the end
of second year of the Program, will adopt arrangements that are more closely integrated into
Government’s institutional and functional arrangements as part of efforts to move more
towards a sector wide approach.
Accounting and Reporting Standards
The Program financial statements will be prepared on a cash basis in accordance with
International Public Sector Accounting Standards (IPSAS) published by the International Public
Sector Accounting Board (IPSASB). In addition, the cash statements, supplementary schedules
and information on assets, commitments and accounts payables will be included in the
statements.
The Program financial statements will consist of the following:
• A statement of accounting and financial policies
• A management assertion that funds have been expended in accordance with the intended
purposes
• A balance sheet reflecting Program assets, liabilities and funding
• A statement of sources and uses of funds reflecting both receipts and payments (by
disbursement categories) on a cash basis, and showing the current reporting period, the
year to date and accumulated figures from the commencement of the program compared
with the Program budget.
• A statement of uses of funds by program activity reflecting the payments by Program
activities.
• A Special Account Reconciliation statement-a reconciliation of funds received with those
disbursed by the Bank.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 133 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
The notes will also include a schedule showing the value of contracts entered into which are still
being implemented (commitments) or where payments are still to be made (liabilities) so as to
arrive at an overall financial position of the Program; a statement of assets showing opening
asset balances, asset acquisitions, asset losses and disposals, closing asset balances for the
period.
The Program accounting records are maintained using (manual system or name the software
used) on a cash basis. Subsidiary and supporting records are held in paper registers and files
and electronic spreadsheets. Contract monitoring and commitment information is provided
regularly to Program management. Assets are accounted for on cash basis, i.e. they are expenses
in the period of purchase, and however supplementary asset records are maintained in a
separate asset register for asset control and management.
Available facilities.
The auditor will be provided with unrestricted access at all reasonable times to all records and
documents, including books of account, legal agreements, minutes of meetings, bank records,
invoices and contracts, etc. All employees of the Program implementing agencies whose
activities involve or may be reflected in the annual financial statements, shall fully cooperate
with the auditor. The Auditor shall have the right of access to banks and depositories,
consultants, contractors and other persons or firms engaged by the Program. Provision will be
made at the offices of (name of the Program) to accommodate staff members of the audit firm
who will be provided with access to photocopying facilities.
Objectives:
The objective of the audit is to enable the auditor:
• to express an opinion on the financial statements of the Program for the financial
year/quarter, in accordance with the adopted accounting standards
• to assess the compliance with laws, regulations and funding agreements that have a
direct and material financial effect on the Programs financial reports, and;
• to assess management’s assertions that they complied with laws, regulations and
provisions of contracts and grant agreements and that they maintained an effective
internal control framework over the program.
Scope
The scope of the successful firm will include the following:
1. Perform the year-end audit on the annual financial statements of the Program
2. Perform continuous audit on the consolidated quarterly Interim Financial Reports (IFRs)
The audit will be carried out in accordance with the International Standards on Auditing (ISA)
including:
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 134 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
• planning and conducting the audit in accordance with a risk based framework with a
detailed audit work program which is sufficiently extensive in its coverage of the
Programs accounts to support the opinion given.
• the auditor will gather evidence and prepare working papers to properly document the
evidence seen in support of the opinion given, sufficient audit evidence will be gathered
to substantiate in all material respects the accuracy of the information contained in
supporting schedules attached to the financial statements.
• the auditor will review and evaluate the system of internal controls in effect, including
internal audit procedures, to determine the degree of reliance that may be placed upon
them and to determine the extent of testing of actual transactions needed to assure the
auditor of the accuracy of the accounting records.
• The audit coverage will consider the risk of material misstatements as a result of fraud or
error. The audit program should include procedures that are designed to provide
reasonable assurance that material misstatements (if any) are detected.
The auditor will obtain an understanding of the design and operation of internal control over
compliance with requirements that could have direct and material effect on funding
agreements.
In conducting the audit, the audit scope should ensure the following:
• Funds have been used in accordance with the conditions for the relevant financing
agreements; with due attention to economy and efficiency, and that funds are only used
for the purposes for which the financing is provided.
• Counterpart funds have been provided and used in accordance with the relevant
financing agreements, with due attention to economy and efficiency, and that funds are
only used for the purposes for which the financing is provided.
• Goods and services have been procured in accordance with the relevant financing
agreements
• Expenditures submitted to the bank are eligible for financing and all necessary
supporting documents, records and accounts in support of withdrawals have been
adequately maintained.
• Funds disbursed through statements of expenditures were used for the purposes defined
in the financial agreements
• The Special Accounts have been maintained and operated in accordance with the
provisions of the relevant financing agreements.
• Internal controls at each level of the program implementation shall be tested by the
auditor at least once a year.
• The auditor’s work in this area is in addition to the consideration of internal control over
financial reporting that is part of the financial statement audit. Specifically, the auditor
must obtain an understanding of the internal control over compliance including Good
Governance Framework, and manuals relating to Financial Management, Service
Delivery Grant, Health Equity Funds Grants and MBPI that is sufficient to plan the audit
to support the assessment of control risk for donor program. The auditor needs to test
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 135 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
the internal control unless the internal control is likely to be ineffective in preventing or
detecting noncompliance.
The audit will include a sufficient sample of control testing at provincial level, physical check of
assets, output and disbursements made under reimbursement procedures to determine whether
funds disbursed were utilized for the purposes defined by the funding agreement.
If for any reason the audit has not been conducted in accordance with the above, this should be
stated in the audit report with an indication of alternative standards or procedures followed.
Compliance with laws, regulations and funding agreements
Management is responsible for ensuring compliance with relevant laws, regulation and funding
agreements. That responsibility encompasses the identification of applicable laws, regulations
and funding agreements and the establishment of internal control designed to provide
reasonable assurance that the program has complied with those laws, regulations and funding
agreements.
In addition to the opinion on the financial statements, the auditor should assess compliance
with laws, regulations and provision of contracts or funding agreements that have a direct and
material financial effect on the financial statements. Where applicable, the auditor should
prepare a report with a separate schedule of findings and impact of non compliance.
Responsibility to consider Fraud in an audit.
The primary responsibility for the prevention and detection of fraud rests with the management
of the Program. The Program places a strong emphasis on fraud prevention, which may reduce
opportunities for fraud to take place, and fraud deterrence and punishment. The Program,
through management oversight, has established a control environment and maintains policies
and procedures to assist in achieving the objectives of ensuring the orderly and efficient conduct
of the Programs business and to provide reasonable assurance with regard to reliability of
financial reporting, effectiveness and efficiency of operations and compliance with applicable
laws, regulations and funding agreements. It is expected that the auditor will follow ISA 240
“The Auditors Responsibility to consider Fraud in an Audit of Financial statements.”
Methodology
In response to these terms of reference, a methodology will be proposed by the auditor. The
audit required must be comprehensive and it is expected that a high degree of probity,
compliance with the law and accountability be reflected in the methodology. The methodology
should address as a minimum:
• Compliance with ISA
• Understanding of the environment and key areas of audit risk
• Audit planning and the role that the client is expected to play in this process
• The proposed audit teams experience
• The resources to be allocated to the audit
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 136 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
• The approach to field work (i.e. gathering of evidence to support assertions to be made in
the audit opinions)
• Quality assurance arrangements (including mechanisms for the client to be involved in
this process)
• Timetable for completion of the audit work.
The methodology proposed by the auditor, adjusted for any changes agreed during contract
negotiations, will form part of the contract with the auditor.
The Audit report
(Name of Program) will be the recipient of the audit report and will be responsible for following
up on findings in the audit report and ensuring that the standard of audit is acceptable. The
Program will be responsible for contracting the audit services in accordance with these terms of
reference and selection criteria as stated in the Request for Proposal.
As a minimum;
• The audit report will state the purpose of the report and its intended use
• The audit report will state which/whose generally accepted accounting standards have
been applied and indicate the effect of any deviations from those standards
• The audit report will state that the audit was conducted in accordance with ISA
• The audit opinion will cover both the current period and the cumulative period since
commencement of the program
• The audit opinion will state whether or not the financial statements present fairly the
financial position and transactions for the Program in accordance with the stated
accounting standards and that the funds were utilized for the purposes intended.
• The audit opinion will cover in all material respects the supporting schedules, including
those noted above.
Management Letter
Together with the audit opinion, the auditor will submit a management letter, and the
management letter should address as a minimum the following:
• An assessment of the Programs internal control system with equal emphasis on (1) the
effectiveness of the system in providing Program management with useful and timely
information for the proper management of the Program (2) the general effectiveness of
the internal control system in protecting the assets and resources of the Program (3) the
effectiveness of the system in ensuring compliance with laws, regulations, funding
agreements, good governance framework and related manuals (including financial
management, service delivery grants, health equity funds grants and MBPI)
• A description of any non-compliance with laws, regulations and provision of contracts or
funding agreement that have been noted during the course of the audit and its impact to
the Program.
Exit conference
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 137 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Upon completion of the field work, the auditor will hold a closing or exit conference with the
senior Program management .The exit conference will give the auditor an opportunity to obtain
managements comments on the accuracy and completeness of the auditors facts or conclusions,
including whether or not management concur with the audit findings. The auditor will
document the exit conference for inclusion in the audit work papers.
19.2.2.1.1.1 The Bank representatives or their designee may participate in the exit meetings of the audit to
provide additional information or discuss area that wish to emphasize.
Deliverables and Timing
Year end financial audit:
The financial statements and the associated audit report and management letter in English shall
be delivered to each implementing agency and a set to Ministry of Economic and Finance. Two
sets of the audited financial statements together with the management letters will be submitted
to each development partner by implementing agency no later than six months after the end of
the financial period to which the audit refers.
It is expected that the financial statements, prepared by the Program, will be ready for audits
within February of each year. The auditor should plan and conduct the audits without delay to
ensure that the audit reports are completed within 8 weeks upon commencement of the audit.
The auditor should submit the report within three (3) weeks following the completion of the
audit to each implementing agency and the Ministry of Economic and Finance. The individual
implementing agency should then promptly forward two copies of the audited financial
statements and management letters to the Bank not later than the above stipulated deadline.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 138 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Quarterly financial audit:
The quarterly audit report together with IFRs shall be submitted to the Bank and other partners
not later than 90 days of the following quarter.
It is expected that the auditor plans and conducts the audits without delay by having the field
work continuously before the quarter end and complete the audit within 25 days after receiving
the consolidated IFRs. The consolidated quarterly IFRs is prepared by the Program, will be
ready within 25 days after the quarter end. The auditor should submit the draft report within
two week following the completion of the audit to the implementing agency and the Ministry of
Economic and Finance. The implementing agency should then promptly forward two copies of
the final audited report and management letters to all development partners not later than the
above stipulated deadline.
Auditor Qualifications
For a qualifying firm, it is envisaged that the appointed firm will meet the following
qualification requirements and experience skills:
For an Auditing firm
• Be a legal entity with business license granted by competent authority
• Be an entity acceptable to the Government and the World Bank as being capable of
conducting audits in accordance with international auditing standards.
• Experience in financial auditing in the public sector
• Experience in auditing in the region and Cambodia
• Experience in financial auditing of World Bank and/or donor funded Programs
For Auditors-in general
• Auditors should hold relevant professional and educational qualifications. They should
hold a relevant professional auditing license/registration
• Auditors should have an in-depth experience in conducting audits of donor funded
Programs and Program financial statements
• Auditors should have experience in auditing in the region and Cambodia with relevant
language skills
• Auditors should have no conflict of interests in relation to the Program and its activities
For Audit Manager
• Should have a postgraduate level qualification in accounting or related discipline, and
preferably posses a qualification in auditing; at least 10 years experience in financial
auditing with substantial experience in auditing public sector clients; not less than 3
years experience in a leadership role.
For Senior Auditor
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 139 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
• Should have a post graduate level qualification in accounting or related discipline; at
least 5 years experience in financial auditing and auditing of financial statements with
substantial experience in auditing public sector clients; not less than 3 years in a lead
position in charge of audit teams.
For Auditors
• Should have a degree level qualification in accounting and auditing at least 3 years
experience in auditing as a member of an audit team, preferably in auditing public sector
clients.
The overall assessment of a firm will surround the following areas;
Skill area
Technical skills
Professional qualification
Experiences
Inter-personal skills
Proposed time frames for
delivery of an audit
Proposed cost
Evaluation
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 140 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
19.3 HSSP TRAVEL & TRAINING ALLOWANCE RATES
Per Diem, Incentives and Allowances will only be paid if the cost is not covered by other
organisations. In that case the amount paid by the other organisation must be deducted from
the allowances claimed;
Supervision claims must be accompanied by Supervision Plan including
i. the frequency and number of supervisory visits by both provincial and district level
staff;
ii. the number of participants (and their positions);
iii. the allowed costs (per diem, fuel for Program vehicle and transportation costs).
Per diems and allowances will only be paid for a maximum of 1 week (5 nights) unless special
arrangements have been approved by the Program Director.
Travel must be over 40km (or 30Km for North-East Provinces) from base to qualify for
overnight accommodation rate;
The staff member cannot claim DSA for two different places at the same time, even if
accommodation is retained at the original duty station;
Any special travel or workshop rates or allowances require the approval in writing (on the
mission order) of the Program Director;
Mission orders are required to be signed separately by visitor and by location visited showing
arrival and departure dates.
19.3.1 PER DIEM / ALLOWANCES - HSSP CONTRACTORS
Rates of per diems vary and are contained in each person’s contract.
19.3.2 PER DIEM FOR SUPERVISION OR MISSION/ ALLOWANCES FOR HEALTH STAFFS
See Annex – A2.17 (Local rate of Per diem and Allowance for Government Officers)
See Annex – A2.19 (Travel Costs between Phnom Penh and Provinces)
See Annex – A2.18 (Per diem and Allowance for in country Workshop/ Training)
Outreach Services to Health Centres and Communities
Trainer / Facilitator
See Annex – A2.18
Who does not receive Per Diem (local) = 20,000 Riels per Full Day
(One extra day for pre-workshop / training preparation is allowable)
If Trainer or Facilitator travels and is entitled to overnight per diems then the overnight per diem
rate will apply but the Trainer or Facilitator will not be entitled to the extra day for preparation.
Allowance for other activities
Transportation
Some of the activities such as “Maternity Waiting Home Allowance” and “Allowance for
Workshop/Training –CBD Agent” can be involved in some discrete donor funding (ie;
UNFPA). In that kind of case the allowance for per-diem/travel/food/accommodation will be
paid according to approved rate by donor and MOH.
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 141 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Based on Actual Expense (Bus, Boat, Taxi) receipts (managed by Local Health Authority)
19.3.3 INTERNATIONAL TRAVEL
For international travel, some DSA rates specified in Anukrat 10 are position-based and/or
higher than some DPs’ norms, and are not acceptable to IDA for application on IDA-financed
projects. Until such time that standard rates for international travel are agreed between
MEF/IDA, the Program may use the UN’s rates.
Per Diems for a journey of 24 hours or longer is computed as follows:
a) Full day allowance for the day travel commenced at the rate applicable for the place of
arrival;
b) International: For each successive 24 hours (midnight to midnight – local time) a full day’s
allowance is paid;
c) No allowance is paid for the day on which travel concluded;
d) The rate applicable for each 24 hour period is the rate for that place where the traveller
spends the night;
e) If the traveller is travelling through the night the rate is the rate applicable for the place of
arrival (except for the last leg of return from travel when the allowance is paid at the rate
of the last authorised place where the night is spent and for the second night for the “”All
Other Area” rate;
f) In the case of stopover during overnight travel, DSA is paid at the place of stopover if the
traveller stays in a hotel.
Per Diem rates are reduced where:
i. Lodging only is provided free = reduced by 50%
ii. Meals only are provided free = reduced by 30% (6% Breakfast - 12% Lunch - 12%
Dinner)
iii. Both meals and lodgings provided free = reduced by 80%
iv. Reduction will apply irrespective of the type of accommodation provided for free
(including accommodation in barracks, boats and in tents);
19.4 LIST OF ATTACHMENT AND ANNEXURE
Attachment
Attachment 1 Organization Structure of the FMG
Attachment 2 Organization Structure of National Program
Attachment 3 Organization Structure for Financial Unit at PHD level
Attachment 4 Organization Structure for Financial Unit at District Level
Central Attachment 5 Terms of Reference for FMG leader
Attachment 6 Terms of Reference for Financial Management Advisor
Attachment 7 Terms of Reference for Senior Finance Officer – Pooled Account
Attachment 8 Terms of Reference for Senior Finance Officer – Discrete Accounts
Attachment 9 Terms of Reference for Finance Officer - Pooled Account
Attachment 10 Terms of Reference for Finance Officer - Discrete Accounts
Attachment 11 Terms of Reference for Cashier
PHD Attachment 12 Terms of Reference for Chief of Finance
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 142 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Attachment 13 Terms of Reference for Provincial Accountant - Pooled Account
Attachment 14 Terms of Reference for Provincial Accountant - Pooled Account
Attachment 15 Terms of Reference for Cashier
OD Attachment 16 Terms of Reference for Chief of Finance
Attachment 17 Terms of Reference for Senior Accountant
Attachment 18 Terms of Reference for Accountant
Attachment 19 Terms of Reference for Cashier
Audit Attachment 20 Terms of Reference for External Audit Firm
Flow Chart
Flow Chart 1 Accounting Flow Chart at Provincial Health Department
Flow Chart 2 Accounting Flow Chart at Operatinal District(OD)/Provincial
Referral Hospital(PRH)
Annex
Annex A1.1 Disbursement Voucher
Annex A1.2 Petty Cash Payment Voucher
Annex A1.3 General Journal Voucher
Annex A1.4 Receipt Voucher
Annex A1.5a Request for Replenishment of Petty Cash
Annex A1.5b PETTY CASH /IMPREST ACCOUNT REQUEST
Annex A1.6 Request for Advance
Annex A1.7 Reconcilation of Amount Advanced
Annex A2.1a STATEMENT FOR RECONCILIATION OF IMPREST
ACCOUNT (Pooled & RGC)
Annex A2.1b STATEMENT FOR RECONCILIATION OF IMPREST
ACCOUNT (Discrete)
Annex A2.2 STATEMENT OF EXPENDITURES (SOE)
Annex A2.3 Bank Account
Annex A2.4 Petty Cash Register
Annex A2.5 Cash Count Sheet
Annex A2.6 Monthly Progress Expenditure Register for PHD
Annex A2.7 Monthly Progress Expenditure Register for below PHD
Annex A2.8a Pooled Fund Budget status by Component and Category
Annex A2.8b Discrete Fund Budget status by Component and Category
Annex A2.9 Counterpart Fund Budget status by Component and Category
Annex A2.10a Advance Register
Annex A2.10b Advance Control Register
Annex A2.11 Sample of Monthly Global Financial Information Report (PHD
level)
Annex A2.12 Sample of Monthly Global Financial Information Report (Below
PHD level)
Annex A2.13 Budget Plan for PBB (Program Based Budget- National Budget)
Annex A2.14 Expenditure Report format for PBB
Annex A2.15 The mechanism of recording expenditures in Quickbooks program.
Annex A2.16 Contract/Commitment Register
Annex A2.17 PER DIEM RATE AND ALLOWANCES OF GOVERNMENT
OFFICERS
Annex A2.18 ALLOWANCES FOR WORKSHOP/ TRAINING
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 143 of 144

HSSP Financial Policies & Procedures Manual
_____________________________________________________________________________________
Annex A2.19 Covering letter for replenishment by PHD
Annex A2.20 Covering letter for replenishment by OD/PRH
IFRs Report Format
Annex B1.1 IFR cover
Annex B1.2 Discussion of Program Progress
Annex B1.3 Statement of Receipt & Payment (Consolidated for all funds)
Annex B1.4 Statement of Payment for all funds(Consolidated for all funds)
Annex B1.5 Statement of Receipt & Payment (Pooled funds)
Annex B1.6 Statement of Receipt & Payment (Discrete funds)
Annex B1.7 Statement of Payment by category (Counterpart Fund)
Annex B1.8 Statement of Payments by Program Activities linked to Annual
Operational Plan (Consolidated all funds)
Annex B1.9 Statement of Payments by Program Activities linked to Annual
Operational Plan (pooled Fund)
Annex B1.10 Statement of Payments by Program Activities linked to Annual
Operational Plan (Counterpart Fund)
Annex B1.11 Statement of Payments by Program Activities linked to Annual
Operational Plan (Discrete Fund)
Annex B1.12 Projected Cash Requirement for the Next Two Quarters (All funds)
Annex B1.13 Projected Cash Requirement for the Next Two Quarters (Pooled
funds)
Annex B1.14 Projected Cash Requirement for the Next Two Quarters (Discrete
funds)
Annex B1.15 Projected Cash Requirement for the Next Two Quarters
(Counterpart funds)
Annex B1.16 Reconciliation of Pooled Account
Annex B1.17 Physical Progress Report (for Pooled Fund)
Annex B1.18 Procurement Monitoring Report
Annex B1.19 Procurement of Works (Pooled Fund)
Annex B1.20 Procurement of Goods (Pooled Fund)
Annex B1.21 Procurement of Consultant-Firm (Pooled Fund)
Annex B1.22 Procurement of Consultant-Individual (Pooled Fund)
Second Health Sector Support Program (HSSP2) Financial Policies & Procedures Page 144 of 144

Accounting Flow Chart at Provincial Health Department
(Both SDG Granted and Non-SDG Granted PHD)
Quarterly -Replenishment
External
Auditor
Legend:
Central MOH
Pooled Account
(DP) - MOH (HSSP
Secreteriat)
Counterpart Bank
Account - MOH
(HSSP
Secreteriat)
Discrete Donor
Bank Account
(HSSP Secreteriat)
Cash/Cheque Payment
Accounts posting
Replenishment/Reporting
Forward copy
PHD Pooled
Advance Account
Monthly reimbursement of
Pooled fund financing
share using petty cash
pre financed by
Counterpart funds
PHD RGC
Contribution
Bank Account
Discrete Donor
Bank Account
(PHD)
Advance
Payment (PHD's
Expdt)
Cheque payment to
suppliers/receipents/un
contracted OD's/PRH's
reimbursement/advanc
es.
Petty Cash (for
minor exp less
than $200)
Advance
Payment (PHD's
Expdt)
Petty Cash (for minor
exp less than $200)
Advance
Payment (PHD's
Expdt)
PHD's own expenditures/ PRH/uncontracted OD's expenditures according to approved
AOP and signed contract.
Monthly SOE statement
(for Pooled & RGC &
Discrete Funds)
Budget Monitoring
Register
Monthly
Progress
Expenditures

Accounting Flow Chart at SDG Eligible Operatinal District(OD)
PHD
Central MOH
Pooled Account
(DP) - MOH
RGC Contribution
Bank Account -
MOH
Discrete Donor
BankAcoount
(HSSP)
OD - Pooled
Advance Account
Monthly reimbursement of
Pooled fund financing
share using petty cash
pre financed by
Counterpart funds
OD - Counterpat
Advance Bank
Account
Discrete
Donor
Advance
Account (OD)
Advance
Payment
(OD/HCs/RH
Expdt)
Cheque payment to
suppliers/receipents/rei
mburse payment to
HCs/District RH.
Petty Cash (for
minor exp less
than $200)
Advance
Payment
(OD/HCs/DRH
Expdt)
Petty Cash
(for minor exp
less than $200)
Advance
Payment
(OD/HCs/DRH
Expdt)
OD's own expenditures/ HCs/RH expenditures according to approved AOP and signed contracts.
Monthly SOE
statement (for
Pooled & RGC
contribution Bank
Account
Budget Monitoring
Register
Monthly
Progress
Expenditures
Legend:
Cash/Cheque Payment
Accounts posting
Replenishment/Reporting

Annex A1.1
Name of PHD/OD/PRH
Second Health Sector Support Program
Ministry of Health
KINGDOM OF CAMBODIA
NATION RELIGION KING
Disbursement Voucher
Vendor Name & Address :
Credit/Gant Category Number and Name
DVCH/09-001
Date Source Account name/Description Expdt
Amount
entered No. Date Code. Debit Credit
1 2 3 4 5 6 7
__________ __________ Account Name $_________
Account Name
( Description: ……………………………….)
$_________
$ - $ -
Approved by: Verified by: Prepared by : Received By:
Director Chief of Finance Accountant
_________________ _________________ ______________ __________

Annex A 1.2
Name of PHD/OD/PRH _________________________
Second Health Sector Support Program
Ministry of Health
KINGDOM OF CAMBODIA
NATION RELIGION KING
Vendor Name & Address :(Receiver's name,and Address)
Credit/Gant Category Number and Name
Petty Cash Payment Voucher
PCPV No. ………………..
Date Source Account name/Description
Expenditure
Amount
entered No. Date Code Riel Exchg -Rate Debit Credit
1 2 3 4 5 6 7
________ No.____ ________ Expenditure name xxxxxx xxxx xxxx
Expenditure name xxxxxxx xxxx xxxx
-Petty cash
xxxxx
(Paid for the
…………………………………….)
Total xxxxx xxxx
Approved by: Verified by: Prepared by : Received By:
Director Chief of Finance Accountant
______________________ _______________ _______________ _______________

Annex A1.3
Name of PHD/OD/PRH
Second Health Sector Support Program
Ministry of Health
KINGDOM OF CAMBODIA
NATION RELIGION KING
General Journal Voucher
Vendor Name & Address :
Credit/Gant Category Number and Name
GJV/09-001
Date Source Account name/Description Expdt
Amount
entered No. Date Code. Debit Credit
1 2 3 4 5 6 7
__________ __________ Account Name $_________
Account Name
( Description: ……………………………….)
$_________
$ - $ -
Approved by: Verified by: Prepared by : Received By:
Director Chief of Finance Accountant
_________________ _________________ ______________ __________

Annex A 1.4
Name of PHD/OD/PRH
Second Health Sector Support Program
Ministry of Health
KINGDOM OF CAMBODIA
NATION RELIGION KING
Receipt Voucher
Vendor Name & Address :
Credit/Gant Category Number and Name
RV No. …………………
Date Source Account name/Description Expdt
Amount
entered No. Date Code. Debit Credit
1 2 3 4 5 6 7
__________ Credit Advice __________
No.____
Pooled Bank Account/RGC Counterpart Bank AC of
PHD/OD/RPH
$_________
- HSSP2 (MOH) Pooled/RGC Account $_________
( Description: Received fund as replenishment or initial deposit)
$ - $ -
Approved by: Verified by: Prepared by : Received By:
Director Chief of Finance Accountant
_________________ _________________ ______________ __________

Annex A 1.5a
Ministry of Health
Second Health Sector Support Program
KINGDOM OF CAMBODIA
NATION RELIGION KING
Request for Replenishment of Petty Cash
DATE : dd/mm/yyyy RFRP No.
1- Agreed Petty Cash Fund US$ 1000
2-
In Hand Petty Cash as at
………………………..
3- Requested for : (Initial petty cash or replenishment of petty cash
4-
Reference Patty Cash Book
No. …….
5- Amount requested : (US$ ………..)
6- Total amount in words :
Approved by Verified by Checked by Prepared by
Director Chief of Finance Accountant Cashier
__________________ _______________ _______________ _______________

KINGDOM OF CAMBODIA
NATION RELIGION KING
Annex A 1.5b
Ministry of Health
Second Health Sector Support Program
PETTY CASH /IMPREST ACCOUNT REQUEST
DATE
: REQUEST NO.:PCR/CPR/09-___
1- Requested by
2- Address
3- Requested for
4- Credit Category
5- Category No.
6- Amount requested
7- Total amount in words
Approved by
Verified by: Checked by: Requester
Director Chief of Finance Accountant Cahier

Annex A 1.6
Ministry of Health
Second Health Sector Support Program
KINGDOM OF CAMBODIA
NATION RELIGION KING
For the use of Advance request for
PHD/OD/HC/RH activities
Request for Advance
DATE : dd/mm/yyyy RA No.
1 Requested By
2 Address:
3 Requested for : Activity name: ………
4 Loan Category:
5 Amount requested US$
(1) Pooled Fund $ 3,500.00
(2) Discrete Fund $ 3,500.00
(3) RGC Counterpart fund $ 800.00
Total request $ 7,800.00
4 Total amount in words : (US$ ………………………………………………….)
Approved by: Verified By Checked By Prepared and requested by
Director Chief of Finance Accountant
______________________ _______________ _______________ _______________

Annex A 2.1a
IMPREST ACCOUNT
STATEMENT FOR RECONCILIATION OF IMPREST ACCOUNT
Second Health Sector Support Program
Project Implementation Unit: (Name of PHD/OD)
Account Number: 1700-xxx.xxx.xx (Pooled Fund AC)
Account Number: 1700-xxx.xxxx.. (RGC Counterpart Fund AC)
With (Bank): ACLEDA BANK
Bank Address: __________ Branch
RGC
Pooled Fund Counterpart
fund
1 PRESENT OUTSTANDING AMOUNT ADVANCED
TO THE SGIA NOT YET RECOVERED 1 USD 50,000.00 20,000.00
2 BALANCE of Imprest account as of ____________
per bank statement (copy attached) USD 1,500.00 1,200.00
3 ADD: Amounts submitted for replenishment but not yet
replenished at date of bank statement USD 47,650.00 18,600.00
(Please see details in attached SOE statement)
4 ADD: Petty Cash balance as of 31/01/2009 USD 150.00 130.00
5 UNLIQUIDATED EXPENSES- expenditures withdrawal from
SGIA but not yet claimed for replenishment
(Itemize expenses)
5.1 Outstanding Advance Payment USD 700.00 70.00
5.4 Other USD
6 TOTAL ADVANCE ACCOUNTED FOR (6=2+3+4+5) USD 50,000.00 20,000.00
Explanation of any discrepancy between totals appearing in lines 1 and 6 above (e.g., earned interest credited
to the account, bank charges, etc..):
ok
Director
(Signed and sealed)

Annex A 2.1b
IMPREST ACCOUNT
STATEMENT FOR RECONCILIATION OF IMPREST ACCOUNT
Second Health Sector Support Program
Project Implementation Unit: (Name of PHD/OD/Referral Hospital)
Account Number: 1700-xxx.xxx.xx (Discrete Fund AC)
With (Bank): ACLEDA BANK
Bank Address: __________ Branch
Discrete Fund
1 PRESENT OUTSTANDING AMOUNT ADVANCED
TO THE SGIA NOT YET RECOVERED 1 USD 20,000.00
2 BALANCE of Imprest account as of ____________
per bank statement (copy attached) USD 1,200.00
3 ADD: Amounts submitted for replenishment but not yet
replenished at date of bank statement USD 18,600.00
(Please see details in attached SOE statement)
4 ADD: Petty Cash balance as of 31/01/2009 USD 130.00
5 UNLIQUIDATED EXPENSES- expenditures withdrawal from
SGIA but not yet claimed for replenishment
(Itemize expenses)
5.1 Outstanding Advance Payment USD 70.00
5.4 Other USD
6 TOTAL ADVANCE ACCOUNTED FOR (6=2+3+4+5) USD 20,000.00
Explanation of any discrepancy between totals appearing in lines 1 and 6 above (e.g., earned interest credited
to the account, bank charges, etc..):
ok
Director
(Signed and sealed)

Annex A2.2
Second Health Sector Support Program
Name of (PHD/OD/PRH) …………………………
Withdrawal Application No. ___________
Summary Sheet No. _____________
STATEMENT OF EXPENDITURES (SOE)
For the period of …………….. 2009
Item
No.
Replenishment Initial Advance
Date Voucher Description of Project Expenditures
Expenditure
Code
Amount Requested
Pooled Counterpart
US$
Total by
category
Category 1 Total
Category 2 Total
Category 3 Total
Grand Total
Approved by: Verified by Prepared by:
Director Chief of Finance Accountant
__________________ ____________________ ___________________

Annex A2.3
Second Health Sector Support Program (HSSP2)
Name of PHD/OD …………………………….
bBaI¢tamdanR)ak;ep£IFnaKarKNnIelx 0000-00-000000-0-0 RbcaMEx mkra 2009
Bank Register Account No. 0000-00-000000-0-0 , for January, 2009.
Date
(éf Ex qñaM) BGT. No. DEBITED
elxfvika \NBn§ smtulü
Number (elx) PURPOSE / REMARKS CREDITED
smtulücugRKamun
Please attach the Bank
Statement for reference.
RECEIPT/VOUCHER (b½NÑcMNUlcMNay) eKalbMNg \NTan
BALANCE
Received fund from HSSP
03-Jun-09 RV/06-001
Initial deposit
5,000.00 5,000.00
Cash withdrawal (CH
04-Jun-09 DVCH/06-001
AB021900) 1,000.00 4,000.00
08-Jun-09 DVCH/06-002 721M47c 120 3,880.00
TOTAL (TwkR)ak;srub ) 2,120.00
0
2,880.00
2,880.00
2,880.00
2,880.00
5,000.00 2,880.00
Total through last period (bNþ 1,000.00 230 770
This period (kñúgRKaenH) 5,000.00 2,120.00 2,880.00
Total up to date (srubdl;cugRKa 5,000.00 2,120.00 2,880.00
karsMrbsMrYlsac;R)ak;
BANK RECONCILIATION
Balance as per Petty Cash register
Outstanding
-
.
-
.
Balance as per bank
statement
\NBn§ \NTan smtulü
DEBITED CREDITED BALANCE
2,880.00
0
2,880.00
0
2,880.00
0 0 2,880.00
éfTI Ex qñaM 2007
RbFanmnÞIsuxaPi)alextþ KNenyükrKMerag ebLakarI
Provincial Health Director Provincial Health Accoun Cashier
htßelxa nig Rta htßelxa nig eQµaH htßelxa nig eQµaH
(Signed and sealed) (Signed and na (Signed and named)

Annex A2.4
Second Health Sector Support Program (HSSP)
Provincial Health Department of ______
bBaI¢ebLaRbcaMEx mkra 2009
Petty Cash Register for January , 2009
RECEIPT/VOUCHER
elxfvika
\NBn§
(b½NÑcMNUlcMNay) eKalbMNg \NTan smtulü
(éf Ex qñaM) (elx) PURPOSE / REMARKS BGT. No. DEBITED CREDITED
04-Jan-09 DVCH/06-001 Cash withdrawal (Ref.CH AB021900)
1,000.00
BALANCE
smtulücugRKamun 0
1,000.00
10-Jan-09 PCPV/06-001 721M344
50 950
770
770
770
770
1,000.00
TOTAL (TwkR)ak;srub ) 230
770
Total through last period (bNþaRKamun) 0
0
0
This period (kñúgRKaenH) 1,000.00
230 770
Total up to date (srubdl;cugRKaenH) 230
1,000.00
770
karsMrbsMrYlsac;R)ak;
\NBn§
CASH RECONCILIATION DEBITED CREDITED BALANCE
Balance as per Petty Cash register Outstanding
- Advance not yet reconciled 150 620
éfTI Ex qñaM 2007
RbFanmnÞIsuxaPi)alextþ KNenyükrKMerag ebLakarI
Chief of Department Accountant Cashier
0
\NTan
150
smtulü
770
620
htßelxa nig Rta htßelxa nig eQµaH htßelxa nig eQµaH
(Signed and sealed) (Signed and named) (Signed and named)

Annex A2.5
Name of PHD/OD/PRH
Second Health Sector Support Program
Ministry of Health
Date: _________________
KINGDOM OF CAMBODIA
NATION RELIGION KING
Cash Count Sheet
Note
I. Actual Count US$ Quantity (Note)
Amount
1 0 - US$
2 0 - US$
5 0 - US$
10 0 - US$
20 0 - US$
50 0 - US$
100 0 - US$
Total US$ - US$
Khmer Riel
50 - Riels
100 0 - Riels
200 0 - Riels
500 0 - Riels
1000 0 - Riels
5000 0 - Riels
10000 0 - Riels
20000 0 - Riels
50000 0 - Riels
100000 0 - Riels
Total Khmer Riel - Riels
Exchange Rate
4,050.00 Riels
US$ Equivalent - US$
Total Cash - US$
II. Balance in Petty Cash Book - US$
III. Difference: 0.00 US$
Reason: _____________________________________________
Over: $ - @ 4,050.00 - Riels
Over than .
Short: $ - @ 4,050.00 - Riels
Shorter than
Approved by: Checked by: Witness Counted by:
Chief of Department Chief of Finance Accountant Cashier
_______________________ ________________ _______________ ________________
Full Name, Signature & Stamp Full Name, Signature Full Name, Signature Full Name, Signature

Annex A2.6
Pro Provincial Health Department of ……………
Second Health Sector Support Program
Monthly Progress Expenditure Register (For the Month of …………./200x)
DV / PCPV No.
Date Account Code Description of Project Expenditures
Pooled Bank
A/C
Counterpart
Bank A/C
Cat: No.
Total amount of
expenditures
(PHD)
Financing Agreement Actual Payment Refundable
amount from
Pooled
Counterpa
rt
Pooled
Counterpa
rt
Pooled Bank
AC to RGC
Bank AC
1 2 3 4 5 6 7 8 9 10 11 12=11-9
Component A
PCPV/09-005 250.00 225.00 25.00 - 250.00 225.00
DVCH/09-002 DVCH/09-001 400.00 360.00 40.00 360.00 40.00 -
DVCH/09-002 150.00 135.00 15.00 150.00 135.00
Total of component A 720.00 80.00 360.00 440.00 360.00
Component C
Component D
Grand Total (Month end)
Date of refund from Pooled A/C to RGC A/C 2.3.09
Refund Amount -
Refund Voucher No.
DVCH/09-045
Remarks:

Annex A2.7
Name of OD/PRH …………………………………..
Second Health Sector Support Program
Monthly Progress Expenditure Register (For the Month of …………./200x)
Date
DV / PCPV No.
Pooled Bank
A/C
Counterpart
Bank A/C
Account
Code
Description of Project
Expenditures
Cat: No.
Total amountof expenditures
OD HC1 HC2
District
Hospital
Total
Financing Agreement
Pooled
Counterpa
rt
Actual Payment
Pooled
Counterpa
rt
Refundable
amount from
Pooled Bank
AC to RGC
Bank AC
1 2 3 4 5 6 7 8 9 10 11=(7 to 10) 12 13 14 15 16=15-13
Component A
PCPV/09-005 120.00 120.00 108.00 12.00 - 120.00 108.00
DVCH/09-002 DVCH/09-001 400.00 400.00 360.00 40.00 360.00 40.00 -
DVCH/09-002 160.00 160.00 144.00 16.00 160.00 144.00
Total of component A 680.00 612.00 68.00 252.00
Component C
Total of component C
Component D
Total of component D
Grand Total (Month end)
Date of refund from Pooled A/C to RGC A/C 2.3.09
Refund Amount -
Refund Voucher No.
DVCH/09-045
Remarks:At the end of each month the total amount of Cloumn 11 will be posting to Budget Status for Pooled Fund Register (Annex- )
The total amount of Column 12 will be posting to Budget Status for Counterpart fund Register (Annex- )

Annex A2.8a
Second Health Sector Support Program
Name of .. PHD/OD/PRH
Pooled Fund Budget status by Component and Category
For the period of ……………..
EXPENSES
Acct. Code
Description of Project
expenditure
Cat No.
Approved
Budget of
Pooled Fund
Total Spent
Budget
Balance
1.Comoponent 1
1.1 Sub component …..
Total of Sub Component 1.1
2. Component 2
2.1 Sub component ….
Jan Feb March 1st Quar. April May June 2nd Quar.
- - - - - -
-
-
-
- - - - - -
Total of Sub Component 2.1
Grand Total Budget

Annex A2.8b
Second Health Sector Support Program
Name of .. PHD/OD/PRH
Discrete Fund Budget status by Component and Category
For the period of ……………..
EXPENSES
Acct. Code
Description of Project
expenditure
Cat No.
Approved Budget
(For discrete fund)
Total Spent
Budget
Balance
1.Comoponent 1
1.1 Sub component …..
Total of Sub Component 1.1
2. Component 2
2.1 Sub component ….
Jan Feb March 1st Quar. April May June 2nd Quar.
- - - - - -
-
-
-
- - - - - -
Total of Sub Component 2.1
Grand Total Budget

Annex A2.9
Second Health Sector Support Program
Name of .. PHD/OD/PRH
Counterpart Fund Budget status by Component and Category
For the period of ……………..
Acct.Code
Description of Project
expenditure
Cat No.
Approved
Budget of
Counterpart
fund
EXPENSES
Total Spent
Budget
Balance
1.Comoponent 1
1.1 Sub component …..
Total of Sub Component 1.1
2. Component 2
2.1 Sub component ….
Jan Feb March 1st Quar. April May June 2nd Quar.
- - - - - -
-
-
-
- - - - - -
Total of Sub Component 2.1
Grand Total Budget

Annex A2.10a
MINISTRY OF HEALTH
Second Health Sector Support Program
ADVANCED REGISTER
For year 2009
Disbursement Voucher of
Advance
90% advanced
Reconciliation of Advance
Amount
Reimburse
d /
Refunded
Date No. Approved amount 90% Rounded Description Date No.
Total
Expenses
Workshop on
___________________
02-Mar-09 DVCH/07-005 1,814.50 1,633.05 1,630.00 _
15-Mar-09 PCPV/09-009 -1,630.00
-
0
1,814.50 1,633.05 1,450.00
- 5,000.00
-
-
-
-
-
3,629.00 8,080.00
Training on
___________________
___
15-Mar-09 JV/09-001 1,200.00 -250
4,500.00 -500
0
0
0
0
0
5,700.00 -2,380.00
Date : _____________, 2009.
Expected
completion
date (or)
deadline
Approved by:
NPs/ Chief of Department
Prepared by:
NPs /Accountant
___________________
(Signed and Sealed)
___________________
(Name and Signature)

Sample of Monthly Global Financial Information Report
PHD level
Receipts
PHD
OD 1
OD 2
OD 3
OD 4
Provincial RH
SOA/ other 1
SOA/ other 2
Total for the month
Year to date
Funding under HSSP II
Discrete Donor (US$)
National Budget
SDG
Other than SDG
Others Total for Total for
Global
Total for Total for GAVI
UNFPA UNICEF AFD (pls discrete funds
Funds
Exchan Equivalen
Pooled Counterpart Pooled Counterpart pooled counterpart
specify) funds under Riel
Riel
ge rate t US$
funds funds
HSSP II
Annex -A2.11
From other souces (FYI only)
User fees
Exchang
e rate
Equivale
nt US$
Total in US$
(Total of US$
column only)
Cumulative to date
Expenses
PHD
OD 1
OD 2
OD 3
OD 4
Provincial RH
SOA/ other 1
SOA/ other 2
Total for the month
Year to date
Cumulative to date
Opening funds balance
Ending funds balance
Represented by:
Cash at Bank
Petty cash
Advances
Total fund balance
Remarks
For reporting purposes: the average exchange rate for the month will be used for receipts and payments, for fund balance, the month end rate shall be applied.
The rates from the local banks shall be used.

Sample of Monthly Global Financial Information Report
For Operational District/ Provincial Referral Hospital/ SOA
Annex -A2.11
Receipts
SDG
Pooled Counterp
art
Other than SDG
Pooled
Counterp
art
Total for
pooled
funds
Funding under HSSP II
Total for
counterpart
funds
GAVI
Global
Funds
Discrete Donor (US$)
UNFPA
UNICEF
AFD
Others
(pls
specify)
Total for
discrete
funds
Total for
funds
under
HSSP II
Riel
From other souces (FYI only)
National Budget
Exchang
e rate
Equivalen
Riel
t US$
User fees
Exchan
ge rate
Equivalent
US$
Total in US$
(Total of US$
column only)
Total for the month
Year to date
Cumulative to date
Expenses
By Program activities code
Total for the month
By RGC Budget Chapter
60
61
62
63
64
65
Special Heading 1
Special Heading 2
Special Heading 3
Total for the month
Year to date
Cumulative to date
Opening funds balance
Ending funds balance
Represented by:
Cash at Bank
Petty cash
Advances
Total fund balance

RksYgsuxaPi)al
r)aykarN_Epnkarfvikarbs;bNþaRsukkic©snüa
srubEpnkarfviika RtImasTI 1 dl;TI 4 qñaM 2008
Annex A2.13
Name of the OD or PRH (xxxx)
CMBUk
KNnI
KNnIrg
eQµaH nigelxkUdskmµPaB
briyaymuxcMNay
srubrYm
EpnkarRbcaMqñaM 2008
tamkmµviFI
minEmnkmµviFI
RtImasTI 1
tamkmµviFI
minEmnkmµviFI
EpnkarkñúgRtImasTI 1 2 3 nig 4
RtImasTI 2
RtImasTI 3 RtImasTI 4
tamkmµviFI
minEmnkmµviFI
tamkmµviFI
minEmnkmµviFI
tamkmµviFI
minEmnkmµviFI
EpnkarenAsl;kñúgRtImasTI 1 2 3 nig 4
tamkmµviFI
minEmnkmµviFI
smtulü
65 ]btßmÖFn nigCMnYysgÁm 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
657 CMnYysgÁmnigR)ak; viPaCn_
6571 xx
6572 xx »sf
CMnYydl;RbCaCnRkIRk
sMrakeBTü
6573 xx
Gahar nig sMPar³
¬sMrab;RbCaCnTUeTA¦
27

RksYgsuxaPi)al
r)aykarN_cMNayfvikarbs;bNþaRsukkic©snüa
srubcMNayfviika RtImasTI 1 dl;TI 4 qñaM 2008
Annex - A2.14
Name of the OD or PRH (xxxx)
CMBUk
KNnI
KNnIrg
eQµaH nigelxkUdskmµPaB
briyaymuxcMNay
cMNayRbcaMqñaM 2008
srubrYm
tamkmµviFI
minEmnkmµviFI
RtImasTI 1
tamkmµviFI
minEmnkmµviFI
cMNaykñúgRtImasTI 1 2 3 nig 4
RtImasTI 2
RtImasTI 3 RtImasTI 4
tamkmµviFI
minEmnkmµviFI
tamkmµviFI
minEmnkmµviFI
tamkmµviFI
minEmnkmµviFI
cMNayenAsl;kñúgRtImasTI 1 2 3 nig 4
tamkmµviFI
minEmnkmµviFI
smtulü
65 ]btßmÖFn nigCMnYysgÁm 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
657 CMnYysgÁmnigR)ak; viPaCn_
6571 xx
6572 xx »sf
CMnYydl;RbCaCnRkIRk
sMrakeBTü
6573 xx
Gahar nig sMPar³
¬sMrab;RbCaCnTUeTA¦
28

The mechanism of recording expenditures in Quickbooks program.
Annex -A2.15
2nd digit;
Component
3rd digit; Sub
component
4th & 5th digits; Main Activities
6th & 7th digits; Sub
Activities
Quickbooks entries; Class/Subclass
and Job list
Sub Activity 1 of main activity.1
Main Activity 1 of Sub component 1.1
Sub Activity 2 of main activity.1
Component 1
Sub component 1.1
Main Activity 2 of Sub component 1.1
Sub Activity 3 of main activity.1
Sub Activity 1 of main activity.2
Classify by sources
of funds (In
Quickbook using with
class list)
Main Activity3 of Sub component 1.1
Sub Activity 1 of main activity.3
Sub component 1.2
Sub component 1.3
Sub component 1.4.
Main Activity(x) of Sub component (x)
Main Activity(x) of Sub component (x)
Main Activity(x) of Sub component (x)
Main Activity(x) of Sub component (x)
Main Activity(x) of Sub component (x)
Main Activity(x) of Sub component (x)
Sub
Sub
Activity(x)
Activity(x)
of main
of main
activity(x)
activity(x)
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)
Classify by
Category code. (In
Quickbooks using
with sub-class list)
Component 2
The same flow as Component 1
Main Activity(x) of Sub component (x)
Main Activity(x) of Sub component (x)
Main Activity(x) of Sub component (x)
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)
Classify by
Location (In
Quickbooks
using with Job
list)
Component 3
The same flow as Component 1
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)
Component 4
The same flow as Component 1
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)
Sub Activity(x) of main activity(x)

KINGDOM OF CAMBODIA
NATION RELIGION KING
Ministry _____________________
Loan/Grant No. ____________________
Project/Program ______________________
Annex -A2.16
Contract/Commitment Register
Contractor/Supplier: ________________________________________________
Address: __________________________________________________
Date of Cont PCSS No. Contract _____________ Amount[1]: ___________ (equivalent US$_____)
Contract Reference No. Category CR/ No. __________ Date started: _________________
General Ledger Account No. xxx/xx/xx/xx/xx/Completion date: ______________
Reference Description Invoice[2] Progress Payments
Date No. amount Date Amount[4] Contract
Balance
Advances[3] on
payment
Retention
on payment
Posted on GL
Y/N
[1] Excluding contingencies.
[2] Payment request per contractor before deduction for advances and retention.
[3] Deductions for retentions and advances on progress payment.
[4] Net payment to contractor.

Ministry of Health Annex- A 2.17
The World Bank & The Asian Development Bank
Health Sector Support Project
Funded by IDA Grant No. TF H015-KH, TF H016-KH, DFID Grant No. TF 051053,
No. 1940-CAM(SF) and The UNFPA
PER DIEM RATE AND ALLOWANCES OF GOVERNMENT OFFICERS
eyag³ ³ lixit rbs;KMeragRTRTgvis½ysuxPi)al elx 856¼0¼07TTvs cuHéfTI 30 Ex emsa qñaM 2007.
eyag ³ lixitRksYgesd§kic© hirBØavtßúelx 2000shv-vs cuHéfTI 23 Ex emsa qñaM 2007
No. Mission
From PHN to Provinces From Provinces to PHN
In own Province and
across to another
Province
Note
1 FOODS USD 10.00 USD 10.00 USD 7.00
2 ACCOMMODATION USD 10.00 USD 15.00 USD 10.00
3 TRANSPORTATION
COSTS
Transportation costs have to reimbursed based to the actual receipts. (In
case of travelers didn't used the Government or Project's vehicle)
For short period
of mission and
no need
overnight stay,
only the rate of
foods are
applicable.
TOTAL BY
OVERNIGHT STAY
USD 20.00 USD 25.00 USD 17.00
Z:\HSSP2\Financial Management Manual\Annex A 2.17

Annex A 2.18
Ministry of Health
The World Bank & The Asian Development Bank
Health Sector Support Project
Funded by IDA Grant No. TF H015-KH, TF H016-KH, DFID Grant No. TF 051053,
No. 1940-CAM(SF) and The UNFPA
ALLOWANCES FOR WORKSHOP/ TRAINING
eyag ³ lixitRksYghirBØavtßúelx 7285shv-vs cuHéfTI 30 Ex viciñka qñaM 2006
eyag³ ³ lixit rbs;KMeragRTRTgvis½ysuxPi)al elx 2616¼0¼06¼TTvs
cuHéfTI 05 Ex FñÚ qñaM 2006.
1
OUTREACH ACTIVITIES FROM HCs
TO COMMUNITIES.
8,000 RIELS / PERSON / DAY
2
3
ALLOWANCE FOR PARTICIPANT IN
PLACE
ALLOWANCE FOR TRAINERS/
FACILITATORS
10,000 RIELS / PARTICIPANT / DAY
20,000 RIELS / TRAINER / DAY
(One extra day for pre-workshop is
allowable)
4 COFFEE BREAK 4,000 RIELS / PARTICIPANT / DAY
5 MATERIALS
8,000 RIELS / PARTICIPANT
(for less than 06 day session)
16,000 RIELS/PARTICIPANT
(for more than 06 day session)
Z:\HSSP2\Financial Management Manual\Annexures A - 31.12.08\Annex A 2.18

Sample covering letter for Provincial Health Department for “Withdrawal Application” of HSSP2 Program
PROVINCILA HEALTH DEPARTMENT OF ………………
SECOND HEALTH SECTOR SUPPORT PROGRAM
Annex A 2.19
WITHDRAWAL APPLICATION
To:
Attn
Ministry of Health
Phnom Penh
Prof. Eng Huot
Project Director HSSP2
Date:…………….
Application………….
Type of disbursement
Replenishment .
Liquidation . .
In the connection to the (xxxxxxx) agreement between the Ministry of Health and Provincial Health
Department of …………. In order to implement Second Health Sector Support Program (HSSP2), please
replenishment to our designated account for the amount of USD …………………. (In word…………………)
The said amount are required for expenditures as describes in the attached Statement of Expenditures (SOE)
for the period from 01 to 31 ……. 2009.
Please proceed the replenishment following banking details:
Amount to replenish: (USD……)
Bank Name:
Bank Address:
Payee’s Account Number:
Payee’s Account Name:
Payee’s Name:
Payee’s Address:
Supporting documents
1. Statement for Reconciliation of Imprest Account (Pooled Fund and RGC Counterpart Fund)
2. Statement of Expenditures (SOE), (Original)
3. Petty Cash Book register, (with petty cash payment voucher – copy)
4. Bank register supported by Bank Statement, Check payment voucher –copy
5. Budget Status by Component and Category
6. …
7. …
Signed by
Director of PHD
_____________________

Annex A1.7
Name of PHD/OD/PRH
Second Health Sector Support Program
Ministry of Health
Reconcilation of Amount Advanced
KINGDOM OF CAMBODIA
NATION RELIGION KING
Sources: (Pooled , Non Pooled or RGC Counterpart Fund)
1 Advance Amount withdraw from the Bank Account
Date: _______________
Advance for ______________________________________
Advance Amount
Advance Paid voucher No. (DVCH No….)
2 Total expenditures
Date: _______________
Description of expenditure __________________________________
Total expenditures
(Please see details in attached " Advance Control Register" )
3 Balance remaining
Advance outstanding (1-2)
4 Refundable Amount
Expenses incurred less than advance amount (1-2)
(To be refunded to Pooled Bank AC or Petty Cash)
5 Reimbursable amount
Expenses incurred greater than advance amount (2-1)
(To be reimbursed for additional advance)
US$
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
Approved by
Director
Verified by:
Chief of Finance
Checked by:
Accountant
Prepared by:
______________________
_______________
_______________
_______________

Ministry of Health
GAVI-HSS Project
Province Name ______________
Annex A2.10b
Advance Control Register
Sources of Fund: (Pooled or RGC Counter Part fund)
Advance Request No: ______________ Dated: __________
Activity name: __________________________
Date
Description
Voucher & JV No.
Refference for
Refund/Reimburse
Expenditure Code Receipt US$
Payment
Riel Exchg Rate US$
US$
Balance in
US$
Received advance DVCH No.1 xxxx xxxx
Settlement of Advance
Expenditure (Riel) GJV/09-001 xxxxxx xxxx @ 4150 xxx xxxx
Expenditure (US$) GJV/09-001 xxxxxx xxx xxxx
Expenditure (Riel) GJV/09-001 xxxxxx xxxx @ 4150 xxx xxxx
Expenditure (US$) GJV/09-001 xxxxxx xxx xxxx
Refund or reimburse xxxx @ 4150 xxxx xxxx
Total xxxx xxxx 0
Liquidation of advance
Liquidated Amount:
US$ ……….
Liquidation Letter No:
Date of Liquidation: 20.9.2009
Refund / Reimbursed Amount US$ ……….
Refund / Reimbursed date: 20.9.09
Approved by Checked by Prepared by
Chief of Department Chief Accountant HSSP2 Accountant
______________________ _______________ _______________

Cambodia: Second Health Sector Support Project
Interim Unaudited Fiancial Reports
Quarter ended …………….
Annex B1.1
Contents
1 Discussion of Program Progress
2 Consolidated Statement of Receipts and Payments - All Funds
2.1 Statement of Payments by Location - All Funds
2.2 Statement of Receipts and Payments - Pooled Funding Donors
2.3 Statement of Receipts and Payments - Counterpart
2.4 Statement of Receipts and Payments - Discrete Donors
3 Statement of Payments by Activity - All Funds
3.1 Statement of Payments by Activity - Pooled Funding Donors
3.2 Statement of Payments by Activity - Counterpart
3.3 Statement of Payments by Activity - Discrete Donors
4 Projected Cash Requirement for the Next Two Quarters - All Funds
4.1 Projected Cash Requirement for the Next Two Quarters - Pooled Funding Donors
4.2 Projected Cash Requirement for the Next Two Quarters - Counterpart
4.3 Projected Cash Requirement for the Next Two Quarters - Discrete Donors
4.3 Reconciliation of Pooled Account
5 [To reserve for additional reporting requirement from Discrete Donors]
6 Physical Progress report
7 Procurement Monitoring Report

Cambodia: Second Health Sector Support Project
Interim Unaudited Fiancial Reports
Quarter ended ………………….
Discussion of Program Progress
Annex B1.2
Comments on information in this IFR
(including of variances and provide the explation likage the physical achievement with financial side)
Procurement (provide the summary on the procurement status)
Issues (if any)

Cambodia: Second Health Sector Support Project
Statement of Receipts and Payments
Consolidated for All Donor Funds
Annex B1.3
Quarter ended …………….
Current
Quarter
Actual Budget Varance
Year to date
Cumulative
to date
Current
Quarter
Current
year
Current
Quarter
Current
year
PAD
Life of
Project
Receipts
Pooled Funding Donors
Discrete Donors
Counterpart
Total receipts
(a)
Payments by category
1. Service Delivery Grants
2. Health Equity Fund Grants
3. Merit Based Pay Initiative
4. Goods, works and services under the
program other than category 1 through 3
Training and Workshop
Civil Works
Goods
Consultant services
Others
Total payments
Excess/(deficit) receipts over payments
(b)
c = a - b
Opening funds balance
Cash at Bank:
Pooled Funding Donors
Discrete
Counterpart
Advance payments
Pooled Funding Donors
Discrete
Counterpart
Petty Cash
Pooled Funding Donors
Discrited Donors (name to be listed)
Counterpart
Total opening funds balance
Closing funds balance
(d)
e = c + d
Represented by:
Cash at Bank:
Pooled Funding Donors
DiscreteDonors
Counterpart
Advance payments
Pooled Funding Donors
Discrete Donors
Counterpart
Petty Cash
Pooled Funding Donors
Discrited Donors (name to be listed)
Counterpart
Total
Check (all should zero)
f
g = e-f

Second Health Sector Support Project
Statement of Payments by Location
Consolidated for all Funds (in US$)
Quarter ended …………….
Total
Annex B1.4
Used of funds for the Quarter, By location
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Locations should be detailed by central departments and province
Payments
I. By category
1. Service Delivery Grants
2. Health Equity Fund Grants
3. Merit Based Pay Initiative
4. Goods, works and services under
the program other than category 1
through 3
Training and Workshop
Civil Works
Goods
Consultant services
Others
Total
a
II. By method of payments
Payments through petty cash
Payments through cash advance
Payments through bank
Others (if any, please specify)
Total
b = a

Cambodia: Second Health Sector Support Project
Statement of Receipts and Payments
Pooled Funding Donors
Annex B1.5
Quarter ended …………….
Current
Quarter
Actual Budget Varance
Year to date
Cumulative
to date
Current
Quarter
Current
year
Current
Quarter
Current
year
PAD
Life of
Project
Receipts
IDA
AusAID
DIFID
UNFPA
Total receipts
(a)
Payments by component
1. Service Delivery Grants
2. Health Equity Fund Grants
3. Merit Based Pay Initiative
4. Goods, works and services under the
program other than category 1 through 3
Training and Workshop
Civil Works
Goods
Consultant services
Others
Total payments
Excess/(deficit) receipts over payments
(b)
c = a - b
Pooled opening funds balance
Cash at Bank
Advance payments
Petty Cash
Total pooled opening funds balance
Pooled closing funds balance
(d)
e = c + d
Represented by:
Cash at Bank:
Advance payments
Petty Cash
Total
f
Breakdown of pooled closing funds balance
IDA
AusAID
DIFID
UNFPA
g = f
US$

Cambodia: Second Health Sector Support Project
Statement of Receipts and Payments
Discrete Donors
Annex B1.6
Quarter ended …………….
Current
Quarter
Actual Budget Varance
Year to date
Cumulative
to date
Current
Quarter
Current
year
Current
Quarter
Current
year
PAD
Life of
Project
Receipts
UNFPA
UNICEF
AFD
Total receipts
(a)
Payments by category
1. Service Delivery Grants
2. Health Equity Fund Grants
3. Merit Based Pay Initiative
4. Goods, works and services under the
program other than category 1 through 3
Training and Workshop
Civil Works
Goods
Consultant services
Others
Total payments
Excess/(deficit) receipts over payments
(b)
c = a - b
Pooled opening funds balance
Cash at Bank
UNFPA
UNICEF
AFD
Advance payments
UNFPA
UNICEF
AFD
Petty Cash
UNFPA
UNICEF
AFD
Total pooled opening funds balance
Closing pooled funds balance
(d)
e = c + d
Represented by:
Cash at Bank
UNFPA
UNICEF
AFD
Advance payments
UNFPA
UNICEF
AFD
Petty Cash
UNFPA
UNICEF
AFD
Total
f

Cambodia: Second Health Sector Support Project
Statement of Payments by Category - Counterpart Funds
Quarter ended …………….
Payments by category
Current
Quarter
Annex B1.7
Actual Budget Varance
Year to date
Cumulative
to date
Current
Quarter
Current
year
Current
Quarter
Current
year
PAD
Life of
Project
1. Service Delivery Grants
2. Health Equity Fund Grants
3. Merit Based Pay Initiative
4. Goods, works and services under the
program other than category 1 through 3
Training and Workshop
Civil Works
Goods
Consultant services
Others
Total payments

Cambodia: Second Health Sector Support Project
Statement of Payments by Program Activities linked to Annual Operational Plan
Consolidated for all Funds (in US$)
Quarter ended …………….
Program Activities
Current
Quarter
Actual
Year to date
Cumulative
to date
Current
Quarter
Budget
Annex B1.8
Current
year
Current
Quarter
Varance
Current
year
PAD
Life of
Project
Activities will be identified during the AOP
review process and agreed upfront before
fiscal budget execution.

Cambodia: Second Health Sector Support Project
Statement of Payments by Program Activities linked to Annual Operational Plan
Annex B1.9
Pooled Funding Donors
Quarter ended …………….
Program Activities
Current
Quarter
Actual Budget Varance
Year to date
Cumulative
to date
Current
Quarter
Current
year
Current
Quarter
Current
year
PAD
Life of
Project
Activities will be identified during the AOP
review process and agreed upfront before
fiscal budget execution.

Cambodia: Second Health Sector Support Project
Statement of Payments by Program Activities linked to Annual Operational Plan
Annex B1.10
Counterpart
Quarter ended …………….
Program Activities
Current
Quarter
Actual Budget Varance
Year to date
Cumulative
to date
Current
Quarter
Current
year
Current
Quarter
Current
year
PAD
Life of
Project
Activities will be identified during the AOP
review process and agreed upfront before
fiscal budget execution.

Cambodia: Second Health Sector Support Project
Statement of Payments by Program Activities linked to Annual Operational Plan
Annex B1.11
Discrete Donors
Quarter ended …………….
Program Activities
Current
Quarter
Actual Budget Varance
Year to date
Cumulative
to date
Current
Quarter
Current
year
Current
Quarter
Current
year
PAD
Life of
Project
Activities will be identified during the AOP
review process and agreed upfront before
fiscal budget execution.

Cambodia: Second Health Sector Support Project
Projected Cash Requirement for the Next Two Quarters
Annex B1.12
All Funds
In US$
Commitment
Funds Received Funds Expended Balance Fund Budget plan for
amounts to be paid Total Funds
to date to date to date
next quarter 1
(period cover)
next quarter 2
(period cover) Total
during the next
quarter
Required
1. Service Delivery Grants
2. Health Equity Fund Grants
3. Merit Based Pay Initiative
4. Goods, works and services
under the program other than
category 1 through 3
Training and Workshop
Civil Works
Goods
Consultant services
Others
TOTAL

Cambodia: Second Health Sector Support Project
Projected Cash Requirement for the Next Two Quarters
Annex B1.13
Pooled Funding Donors
In US$
Commitment
Funds Received Funds Expended Balance Fund Budget plan for
amounts to be paid Total Funds
to date to date to date
next quarter 1
(period cover)
next quarter 2
(period cover) Total
during the next
quarter
Required
1. Service Delivery Grants
2. Health Equity Fund Grants
3. Merit Based Pay Initiative
4. Goods, works and services under
the program other than category 1
through 3
Training and Workshop
Civil Works
Goods
Consultant services
Others
TOTAL

Cambodia: Second Health Sector Support Project
Projected Cash Requirement for the Next Two Quarters
Annex B1.14
Discrete Donors
In US$
Commitment
Funds Received Funds Expended Balance Fund Budget plan for
amounts to be paid Total Funds
to date to date to date
next quarter 1
(period cover)
next quarter 2
(period cover) Total
during the next
quarter
Required
1. Service Delivery Grants
2. Health Equity Fund Grants
3. Merit Based Pay Initiative
4. Goods, works and services under
the program other than category 1
through 3
Training and Workshop
Civil Works
Goods
Consultant services
Others
TOTAL

Cambodia: Second Health Sector Support Project
Projected Cash Requirement for the Next Two Quarters
Annex B1.15
Counterpart
In US$
Budget plan for
Funds Received
to date
Funds Expended
to date
Balance Fund
next quarter 1
(period cover)
next quarter 2
(period cover)
A B C = A - B D E F = D + E G H = F + G - B
Total
Commitment
amounts to be paid
during the next
quarter
Total Funds
Required
1. Service Delivery Grants
2. Health Equity Fund Grants
3. Merit Based Pay Initiative
4. Goods, works and services under
the program other than category 1
through 3
Training and Workshop
Civil Works
Goods
Consultant services
Others
TOTAL

POOLED ACCOUNT (PA) BANK RECONCILIATION
1. Total Amount Advanced in the Account
2. Total Amount Documented and Accepted by the Bank including Refunds
From all Pooled Funds
Individual Pooled
Fund Donor
3.Outstanding Amount Advanced (line 1 minus line 2)
4. Closing Balance ( per bank statement as of )
(should equal line 3 minus line 5 minus line 6; if not, provide explanation)
5. TOTAL EXPENDITURES PAID FROM PA DURING REPORTED PERIOD
a) Merit Based Pay Initiative
b) Service Delivery Grants
c) Health Equity Grants
d) Others programs in AOP
6. Adjustment:
a) Minus Interest Earned (if any)
b) Plus/Minus Other Adjustment* Forex Gains/(Loss)
7. Amount advanced (line 4 plus lines 5 and 6)
PROJECTED CASH REQUIREMENTS FOR THE NEXT REPORTING PERIOD
8. Total Expenditures to be financed for the Next Two Quarters
10. Cash Requirement for the Next Period (line 8 minus lines 4, 6 and 9)
*Provide detailed amount and reasons for other adjustment
** The column "Individual Pooled Fund Donor" shows the specific donor's percentage of
"All Pooled Funds"
USD

Cambodia: Second Health Sector Support Project
Physical Progress Report
For Pooled Funding Donors
Annex B1.17
As of …………….
Program Component
Component A - Strengthening
Health Service Delivery
Planned
Implementation /
Indicator
For the
year
For the
whole
project life
Actual Ouputs Achieved
Cummulative
for the year
Cummulative
to date
Cummulative
for the year
Cost incurred
Cummulative
to date
Actual result as a % of the planned
results
Cumm
for the
year
Output
Cumm
to date
Cumm for
the year
Cost
Cumm to
date
Comments
Component B - Improving Health
Financing
Component C - Strengthening
Human Resources
Component D - Strengthening
Health System Stewardship
Function

Cambodia: Second Health Sector Support Project
Procurement Monitoring Report
Annex B1.18
No.
Description
Total Amount Contract Awarded (US$) Total payment to date (US$) Amount contracted but not yet paid (US$)
DPs -
Pooled
funds
Others DPs
(name to
be
specified) Counterpart Total
DPs -
Pooled
funds
Others DPs
(name to
be
specified) Counterpart Total
DPs -
Pooled
funds
Others DPs
(name to be
specified) Counterpart Total
1 Civil Works
2 Goods
3 Consultant services
Total

Procurement Monitoring Report
Procurement of Works
Program name: Cambodia: Second Health Sector Support Project Pooled Funding Donors
Prepared date:
Annex B1.19
Bidding Documents (BD) and Bidding Process
Bid Evaluation/contract
award recommendations
Contract
No
Description of Works
Contract Ref. No.
Prior (P) or Post Review (PR)
Procurement Method
IPA sent Draft BD to PRC for
Approval (Date)
Approval to Draft BD by PRC
(Date)
IPA sent Draft BD to the
Bank's NOL (Date)
No Object to the Draft BD by
the Bank (Date)
Bid Invitation Issued (Date)
Bids Opened (Date)
IPA sent evaluation
report/award recommendation
to the Bank (Date)
No Objection to evaluation
report/award recommendation
by the Bank (Date)
Project signed Contract with
the Contractor (Date)
Contractor's Name
Contract Amount
Completion Date
1
1
Planned
Actual
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
2
Planned
Actual
+ State applicable method (ICB, NCB, Shopping., etc) as per DCA
# Applicable only in case of contracts subject to "Prior Review" by Bank - as per DCA
Acronyms: MEF: Ministry of Economy and Finance, NOL: No Objection Letter, and BD: Bidding Document

Procurement Monitoring Report
Procurement of Goods
Program name: Cambodia: Second Health Sector Support Project Pooled Funding Donors
Prepared date:
Annex B1.20
Bidding Documents (BD) and Bidding Process
Bid Evaluation/contract
award recommendations
Contract
No
Description of Goods
Contract Ref. No.
Prior (P) or Post Review (PR)
Procurement Method
IPA sent Draft BD to PRC for
Approval (Date)
Approval to Draft BD by PRC
(Date)
IPA sent Draft BD to the
Bank's NOL (Date)
No Object to the Draft BD by
the Bank (Date)
Bid Invitation Issued (Date)
Bids Opened (Date)
IPA sent evaluation
report/award recommendation
to the Bank (Date)
No Objection to evaluation
report/award recommendation
by the Bank (Date)
Project signed Contract with
the Contractor (Date)
Contractor's Name
Contract Amount
Completion Date
1
1
Planned
Actual
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
2
Planned
Actual
+ State applicable method (ICB, NCB, Shopping., etc) as per DCA
# Applicable only in case of contracts subject to "Prior Review" by Bank - as per DCA
Acronyms: MEF: Ministry of Economy and Finance, NOL: No Objection Letter, and BD: Bidding Document

Procurement Monitoring Report
Consultant services - Firms
Program name: Cambodia: Second Health Sector Support Project Pooled Funding Donors
Prepared date:
Annex B1.21
Shortlist and Draft Request for Proposal (RFP)
Technical Evaluation
Final (technical-financial)
Evaluation
Contract
No
Decription of services
Contract Ref. No.
Prior (P) or Post Review (PR)
Procurement Method
IPA sent Shorlist to the Bank
(Date)
No Objection to Shortlist by
the Bank (date)
IPA sent Draft RFP to PRC
(date)
Approval to Draft RFP by
PRC (date)
IPA sent Draft RFP to the
Bank (date)
No Object to Draft RFP by
the Bank (date)
IPA issued RFPs (Date)
IPA receives Proposals from
firms (Date)
IPA sent tech. evaluation
report to the Bank (date)
No Objection to tech.
evaluation report by Bank
(date)
IPA opened Financial
Proposal publicly (Date)
IPA completes final
evaluation
PRC and IPA negotiate
contract with consultant
IPA sent Draft Contract
and final evaluation report
to the Bank (date)
No Objection to Draft
Contract by the Bank
(date)
Project signed Contract
with Consultant (Date)
IPA sent Signed contract
to the Bank (date)
Consultant's Name
Contract value (US$)
Contract/ Delivery
Completion Date
1
1
Planned
Actual
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
2
Planned
Actual
+ In case of firms, state applicable method (QCBS, QCS, LCS, etc) as per DCA
# Applicable only in case of contracts subject to "Prior Review" by Bank - as per DCA
Acronyms: RFP: request for Proposal and NOL: No Objection Letter

Procurement Monitoring Report
Consultant services - Individual Consultant
Program name: Cambodia: Second Health Sector Support Project Pooled Funding Donors
Prepared date:
Annex B1.22
TOR/EOI
Evaluation Contract
No
Decription of services
Contract Ref. No.
Prior (P) or Post Review (PR)
Procurement Method
IPA sent TOR and EOI
advertisment to PRC (date)
Approval to ToR and EOI
advertisment by PRC (date)
IPA sent TOR and EOI
advertisment to the Bank
(date)
No Objection to ToR and EOI
advertisment by the Bank
Advertisement by IPA
(date)
Submission of EOI date
IPA sent evaluation
report to the Bank (date)
No Objection to evaluation
report (date)
PRC and IPA negotiate
Contract with Consultant
(date)
IPA sent Draft Contract to
the Bank (date)
No Objection to Draft
Contract by the Bank
(date)
Project signed Contract
with Consultant (Date)
IPA sent Signed contract
to the Bank (date)
Consultant's Name
Contract value (US$)
Contract/ Delivery
Completion Date
1
1
Planned
Actual
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
2
Planned
Actual
+ In case of firms, state applicable method (QCBS, QCS, LCS, etc) as per DCA
# Applicable only in case of contracts subject to "Prior Review" by Bank - as per DCA
Acronyms: RFP: request for Proposal and NOL: No Objection Letter