FINANCIAL POLICIES & PROCEDURES MANUAL - Ministry of Health

HSSP Financial Policies & Procedures Manual
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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.
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