TENMET Financial Policies & Procedures Manual - Tanzania ...

Financial Policies and 

Procedures Manual

Table of Contents 

1.0 Introduction......................................................................................................1 

1.1 Identity......................................................................................................................................................1 

1.2 Vision.........................................................................................................................................................1 

1.3 Mission......................................................................................................................................................1 

1.4 Values and Principles..............................................................................................................................1 

1.4.1 Core Values..................................................................................................................................1 

1.4.2 Principles.....................................................................................................................................1 

1.5 Purpose of the Manual...........................................................................................................................1 

1.6 Compliance..............................................................................................................................................2 

1.7 Accounting Policies and Concepts.......................................................................................................2 

1.8 Concept and Policies to be followed....................................................................................................3 

1.8.1 Basis of accounting concepts....................................................................................................3 

1.8.2 Non-Current Assets....................................................................................................................3 

1.8.3 Depreciation................................................................................................................................3 

1.8.4 Bad and Doubtful Debts............................................................................................................3 

1.8.5 Income..........................................................................................................................................3 

1.8.6 Expenses......................................................................................................................................3 

1.8.7 Valuation of Stationery Stocks and other Consumable Stores.............................................3 

1.8.8 Foreign Currency Transactions.................................................................................................3 

1.8.9 Grants...........................................................................................................................................4 

1.8.0 10 TEN/MET’s Financial Year..................................................................................................4 

1.8.11 Accounts shall be Recorded......................................................................................................4 

1.8.12 Validity.........................................................................................................................................4 

1.9 Definitions................................................................................................................................................4 

2.0 Principles Guiding Management of Resources.................................................6 

2.1 Custodianship..........................................................................................................................................6 

2.2 Cost Effectiveness....................................................................................................................................6 

2.3 Accountability..........................................................................................................................................6 

2.4 Transparency............................................................................................................................................6 

2.5 Compliance..............................................................................................................................................6 

2.6 Integrity....................................................................................................................................................6 

2.7 Sustainability............................................................................................................................................7 

3.0 Decision Making................................................................................................8 

3.1 Purpose.....................................................................................................................................................8 

3.2 Levels of Decision-making Roles, Powers and Responsibilities......................................................8 

3.2.1 The Annual General Meeting shall:.........................................................................................8 

3.2.2 The Board of Directors shall:....................................................................................................8 

3.2.3 The Coordinator shall:...............................................................................................................8 

3.2.4 Other employees shall:..............................................................................................................9 

3.2.5 The Head of Finance shall:........................................................................................................9 

3.3 Delegation..............................................................................................................................................10 

4.0 Bank Management..........................................................................................11 

4.1 Purpose................................................................................................................................................... 11 

4.2 Bank Accounts....................................................................................................................................... 11 

4.3 Signatories............................................................................................................................................. 11

4.4 Authorization Levels............................................................................................................................12 

4.5 Other Control Measures.......................................................................................................................12 

4.6 Foreign Exchange Management..........................................................................................................14 

5.0 Budget Management.......................................................................................15 

5.1 Purpose...................................................................................................................................................15 

5.2 Types of Budgets...................................................................................................................................15 

5.3 Key Budget Characteristics..................................................................................................................15 

5.4 Budget Approval and Management...................................................................................................15 

5.5 Variations and Contingencies..............................................................................................................16 

6.0 Credit..............................................................................................................17 

6.1 Purpose...................................................................................................................................................17 

6.2 Guiding Principles................................................................................................................................17 

6.3 Staff loans...............................................................................................................................................17 

6.4 Credit to Others.....................................................................................................................................18 

7.0 Incomes and Donor Relations.........................................................................19 

7.1 Purpose...................................................................................................................................................19 

7.2 Sources of Income..................................................................................................................................19 

7.3 Fundraising and Donor Relations.......................................................................................................19 

7.4 Management of Incomes......................................................................................................................20 

8.0 Expenditure.....................................................................................................21 

8.1 Purpose...................................................................................................................................................21 

8.2 Payments................................................................................................................................................21 

8.4 Petty Cash...............................................................................................................................................23 

8.5 Imprests..................................................................................................................................................23 

9.0 Payroll.............................................................................................................25 

9.1 Purpose...................................................................................................................................................25 

9.2 Payroll Authorization...........................................................................................................................25 

9.3 Payroll Features.....................................................................................................................................25 

9.4 Payroll Processing.................................................................................................................................25 

9.5 Internship Stipends and Consultancy Payments..............................................................................26 

10 Daily Subsistence Allowances (DSA)..............................................................27 

10.1 Purpose...................................................................................................................................................27 

10.2 Eligibility and Coverage.......................................................................................................................27 

10.3 Rates........................................................................................................................................................27 

10.4 Current rates..........................................................................................................................................28 

10.5 Vehicles...................................................................................................................................................29 

11 Year-end Adjustments....................................................................................30 

11.1 Purpose...................................................................................................................................................30 

11.2 Controls...................................................................................................................................................30 

12. Closing the Books of Accounts........................................................................31 

12.1 Purpose...................................................................................................................................................31 

12.2 Month-end Procedures........................................................................................................................31 

12.2.1 Closing the Books.....................................................................................................................31 

12.2.2 Trial Balance..............................................................................................................................31 

12.2.3 Year-end Procedures................................................................................................................31 

12.2.4 Year-end Procedures Checklist...............................................................................................32

13. Reports...........................................................................................................33 

13.1 Purpose...................................................................................................................................................33 

13.2 Report Types..........................................................................................................................................33 

13.2.1 Daily Reports – Cash Position................................................................................................33 

13.2.2 Monthly Reports.......................................................................................................................33 

13.2.3 Quarterly Reports.....................................................................................................................33 

13.2.4 Annual Reports.........................................................................................................................33 

13.2.5 Daily Reports - Content...........................................................................................................33 

13.2.6 Monthly Reports - Content.....................................................................................................33 

13.2.7 Quarterly Reports - Content...................................................................................................34 

13.2.8 Annual Reports - Content.......................................................................................................35 

13.3.9 Year-end Procedures Checklist...............................................................................................36

1.0: Introduction 

1.1 Identity 

Tanzania Education Network / Mtandao wa Elimu Tanzania (TEN/MET) was founded in 1999 

as a national network, linking together and supporting CSOs in their initiatives to advocate for 

quality basic education for all in Tanzania. It is registered as a not-for-profit company limited 

by guarantee not having share capital under the Companies Ordinance (Cap. 212 of the Laws 

of Tanzania) 21st September, 2005. 

1.2 Vision 

Vibrant CSOs that promote equitable access to quality education 

1.3 Mission 

TEN/MET is a network organization committed to promote equitable access to quality 

education by strengthening education CSOs in Tanzania through capacity building, advocacy, 

research, and networking 

1.4 Values and Principles 

1.4.1 Core Values 

TEN/MET is guided by the following six core values: 

1. Equal access to quality inclusive basic education for all Tanzanians 

2. Local communities and poor people have potential to contribute to and demand 

good quality education 

3. Integrity at all times 

4. Transparency and accountability 

5. Maintenance of accurate records with in-built confidentiality 

6. Effective leadership and constancy of purpose 

1.4.2 Principles 

TEN/MET 

1. is guided by the Strategic Plan and implements programs and activities with the 

support of its members 

2. lives up to its mission 

3. adopts the most effective leadership style and skills to ensure commitment to 

excellence 

4. uses all its resources efficiently and effectively, including the potential and 

creativity of its members 

5. continually monitors and evaluates its products, services, and processes 

1.5 Purpose of the Manual 

The objective of this manual is to detail the policies and procedures to be utilized by the Finance 

Function of TEN/MET are related to its financial management and accounting activities. 

To ensure timely and accurate recording of financial transactions; providing useful management 

information and proper reporting of such information for various users; and adherence to the 

highest professional standards. 

TEN/MET Financial Policies and Procedures Manuals Approved by the Board on 26.08.2013 1

1.5.1 Scope of Financial Policies and Procedures Manual 

1.6 Compliance 

This Financial policies and Procedures Manual outlines the policies and procedures to 

be used in carrying out the financial activities of the institution. This manual covers 

the following areas: 

o Accounting policies procedures and controls; 

o Financial management policies; 

o Reporting requirements; 

While preparing the manual, the following laws, rules, regulations and standards have 

been considered: 

o Generally Accepted Accounting Principles (GAAP) 

o International Financial Reporting Standards (IFRS) 

o Income Tax Act 

o Donors funding rules and regulations 

1. This manual shall be read together with TEN/MET’s Administration Policies manual. 

2. The Head of Finance shall have the responsibility of ensuring that the Financial 

Regulations are implemented and complied with fully and on a timely basis. He/she 

shall also ensure that the regulations are updated whenever the need arises 

3. Any employee who through misappropriation or misapplication of funds or other 

significant non-compliance of the policies and regulations stated in this manual causes 

loss or damage to TEN/MET shall be held personally liable, and shall be required 

to compensate TEN/MET for the loss or damage incurred and may be subjected to 

appropriate disciplinary action in accordance with staff regulations. 

1.7 Accounting Policies and Concepts 

1. The accounting policies of TEN/MET are the specific principles, bases, conventions, 

rules and practices adopted by the Board in preparing and presenting the financial 

statements. 

2. The basic objective of accounting in TEN/MET s is to provide useful information for 

making decision. The various users of accounting information will rely on financial 

statements and other accounting reports in making decisions. The reliability of the 

financial statements and accounting reports will depend on the accounting policies 

adopted by the TEN/MET. 

3. The Board of Directors shall determine from time to time the appropriate accounting 

policies that comply with the International Financial Reporting Standards (IFRS) and 

pronouncements made by the National Board of Accountants and Auditors (NBAA). 

4. It is a fundamental accounting concept that there is consistency of accounting treatment 

of similar transactions within each accounting period and from one period to the next. 

A change in accounting policy should be made only if required by statute, or if the 

change will result in more appropriate presentation of events or transactions in the 

financial statements. 

5. Where a specific accounting policy is not stipulated in these Regulations, the 

management should develop an appropriate policy for the Board’s approval. In 

developing such a policy reference should be made to specific standards under IFRS 

and/or NBAA accounting standard pronouncements. In the absence of a specific 

accounting standard reference should be made to the requirements and guidance in 

the NBAA Financial Accounting Standards dealing with similar and related issues; and 

the definitions, recognition and measurement criteria for assets, liabilities, income and 

expenses set out in the Conceptual Framework of Financial Reporting of IFRS. 

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TEN/MET Financial Policies and Procedures Manuals Approved by the Board on 26.08.2013

1.8 Concept and Policies to be followed 

1.8.1 Basis of accounting concepts 

The accounts shall be prepared on a going concern basis, under the historical cost 

convention, modified, when necessary, to include revaluation of non-current assets. 

1.8.2 Non-Current Assets 

Non-current assets shall be stated in the Statement of Financial Position at cost or 

revaluation net of accumulated depreciation. 

1.8.3 Depreciation 

Depreciation of non-current assets shall be provided for on the straight-line basis to 

write off the cost/valuation of assets over their expected useful lives. The charge for 

depreciation shall begin an asset is made available for use cease when the asset is 

derecognized, that is, when it is disposed of or sold. The following annual rates shall 

be adopted and they shall be consistently applied as hereunder: 

Asset Category 

Rate p.a. 

Lands and buildings 3.0% 

Motor vehicles and cycles 25.0% 

Computers and accessories 33.3% 

Other equipment and tools 25.0% 

Furniture and fittings 12.5% 

1.8.4 Bad and Doubtful Debts 

Provision for bad and doubtful debts shall be made in the accounts on specific debts 

considered irrecoverable or doubtful of recovery. Should be 1 yr for staff and others 2 

yrs, thereafter write off 3yrs while for members refer to constitution 

1.8.5 Income 

Income arising from grants and donations shall be recognized on cash basis. All other 

income shall be recognized on accrual basis of accounting. 

1.8.6 Expenses 

Expenses falling due at the end of the year but not paid for shall be accrued in the 

financial statements. 

1.8.7 Valuation of Stationery Stocks and other Consumable Stores 

Stocks of stationery and other consumable stores shall be valued at the lower of 

cost and net realizable value. Cost shall be determined on First-In-First-Out (FIFO) 

basis. Provision shall be made in the accounts on specific stocks that are damaged or 

considered obsolete 

1.8.8 Foreign Currency Transactions 

Transactions denominated in foreign currencies shall be translated into Tanzania 

Shillings at rates of exchange ruling at the respective dates of the transactions. Assets 

and liabilities denominated in foreign currencies at the statement of financial position 

date shall be translated into Tanzania Shillings at the exchange rates ruling on that date. 

Gains or losses on foreign currency transactions shall be dealt with in the statement of 

comprehensive income. 


1.8.9 Grants 

Grants received/receivable to support the operations of TEN/MET shall be recognized 

as income in the statement of comprehensive income in the same period in which the 

operating expenditure to which they relate is charged. Grants received for purposes 

of acquisition of items of capital expenditure shall be credited to the Capital Grant 

Account. The Capital Grant shall be annually released to income in amounts equal to 

the depreciation charged to the statement of comprehensive income in respect noncurrent 

assets financed by such grants. 

1.8.10 TEN/MET’s Financial Year 

Will run from 1st July to 30th June. 

1.8.11 Accounts shall be Recorded 

In a professional computerized accounting package so as to enable automated reports 

and quick reference, and limit errors and potential for fraud. 

1.8.12 Validity 

1.9 Definitions 

These regulations shall become effective on the date the Board approves this manual 

and shall replace and supersede all previous regulations and practices that have been 

effective hitherto. Where there is a conflict between the provisions of these Regulations 

and any policy, contract, regulation, procedure, guideline or other instruction issued 

prior to date the Board approves this manual these Regulations and authorized 

amendments made to them from time to time shall prevail. 

“Board” 

means Board of Directors of the Tanzania Education Network/ 

Mtandao wa Elimu Tanzania (TEN/MET). 

“Board Chairperson” means Chairperson of the TEN/MET Board of Directors 

“Category A” means the first group of TEN/MET signatories from the secretariat 

where payments are initiated 

“Category B” means the second group of signatories from among secretariat 

“Coordinator” means the Coordinator of TEN/MET 

“DSA” 

means daily subsistence allowance 

“Employee” 

means any person employed by TEN/MET on a contract basis 

“Employer” 

means the Board of Directors of TEN/MET 

“GAAP” 

Generally Accepted Accounting Principles 

“IFRS” 

means International Financial Auditing Standards issued by the 

International Accounting Standards Board. 

“Leave” 

means absence from work with or without pay that is authorized by 

the employer in accordance with the Policies 

“Long term contract employee” means an employee of TEN/MET working full time with a 

contract of more than six continuous months 

“NBAA” 

means the National Board of Accountants and Auditors 

“Organization” means TEN/MET 

“Partner” 

means an organization or other entity with which TEN/MET 

collaborates in the pursuit of a common aim. 

“Payment Voucher” or “PV” means the official form providing evidence for a payment claim 

being made. 

“Policies” 

means the Administrative Policies of TEN/MET that have been 

established by the Board of Directors and as may be amended by the 

Board from time to time. 

4 


“Probation” 

“Regulations” 

“SOCE” 

“SOCF” 

“SOCI” 

“SOFP” 

“Supervisor” 

“Working day” 

means the period of initial employment, during which appointment 

to the position is yet to be confirmed by the employer 

means the Financial Regulations of TEN/MET as articulated herein 

and as may be amended by the Board of Directors from time to time. 

Statement of Changes in Equity 

Statement of Cash Flow 

Statement of Comprehensive Income 

Statement of Financial Position 

means an employee responsible for overseeing and supporting the 

work of subordinate employee(s) 

means a day in which an employee would normally be required to 

work (i.e. Monday to Friday). A working week has 5 working days. 


2.0: Principles Guiding Management of Resources 

TEN/MET shall strive to achieve the highest levels of financial standards and accountability. It 

recognizes that it is entrusted by the public to be responsible and effective manager of resources and 

assets. In this context TEN/MET shall be guided by the following principles: 

2.1 Custodianship 

1. Resources of the organization are effectively, efficiently, honestly and faithfully used to 

achieve the organization’s objectives. 

2. Resources and assets are safeguarded from loss, fraud, waste and inefficient use. 

2.2 Cost Effectiveness 

1. Funds are used carefully to maximize quality and minimize cost. 

2. Culture of frugality is promoted and observed. 

2.3 Accountability 

1. There is segregation of responsibilities and accountability at different levels as 

appropriate, with specified roles for the Annual General Meeting (AGM), Board of 

Directors, and Coordinator and other Staff. 

2. Accounts are kept and financial statements prepared in accordance with International 

Financial Reporting Standards and formats and are consistent with approved Policies 

and Regulations. 

3. Financial statements are audited annually by a registered and recognized independent 

auditing firm not later than three months after the end of every financial year. 

4. Maintain all substantive financial records (in both paper and electronic formats) in a 

secure and organized fashion for a period of seven years after the end of the financial 

year. 

2.4 Transparency 

1. Decisions and actions are fully documented and unusual circumstances are explained. 

2. Financial information is accurately recorded, clearly presented and disclosed without 

undue delay to those who have a right to request it. 

3. Files and documentation are maintained in good, accessible order at all times. 

2.5 Compliance 

1 Financial management is consistent with legal requirements. 

2 Compliance, reliability and consistency with TEN/MET Policies and Financial 

Regulations are maintained at all times. 

3 Exceptions to regulations are kept to a minimum, employed only when necessary and 

justifiable, fully documented and authorized. 

2.6 Integrity 

1 Integrity of the organization and individuals within the organization is demonstrated 

beyond question. 

2 There is zero tolerance for corruption. 

3 There is full clarity about how funds are utilized and records represent an accurate, 

true and fair reflection of reality. 

4 Regulations and practices ensure that actual or potential conflicts of interest are 

avoided. 

6 


2.7 Sustainability 

Management of resources, assets and planning are done in a manner that enhances and 

safeguards the sustainability of TEN/MET and its work. 


3.0: Decision Making 

3.1 Purpose 

In order to ensure smooth and efficient management of resources while maintaining 

accountability and adequate checks and balances, powers and responsibilities shall be 

delegated at different levels throughout TEN/MET. This means responsibilities are shared 

and distributed at all levels, from the AGM to the employees as follows: 

3.2 Levels of Decision-making Roles, Powers and Responsibilities 

3.2.1 The Annual General Meeting shall: 

1 Endorse overall strategy and corresponding budget (usually for a three-year 

period). 

2 Appoint independent auditors and approve their fees. 

3 Endorse audited annual books of accounts and corresponding annual narrative 

report. 

3.2.2 The Board of Directors shall: 

1 Set overall regulations, principles and guidelines for financial management. 

2 Approve books of accounts before forwarding to AGM. 

3 Recommend auditors for appointment to AGM. 

4 Approve annual work plans and corresponding budgets. 

5 Review and approve annual, half-year and quarterly financial and narrative 

reports. 

6 Approve overall salary structure and levels. 

7 Appoint bankers and approve types of accounts, signatories and levels of 

authority. 

8 Support and participate in fundraising efforts and donor relations. 

9 Report to the AGM. 

3.2.3 The Coordinator shall: 

1 Be the Chief Accounting Officer of TEN/MET 

2 Coordinate and lead strategic budget planning, management and overall 

reporting. 

3 Overall responsibility for implementation of annual, quarterly and major activity 

plans and related budgets. 

4 Supervise the implementation and interpretation of regulations set by the Board 

5 Ensure accurate and clear books of accounts and asset registers are maintained. 

6 Establish and monitor mechanisms for effective accountability and internal 

controls to prevent fraud, theft, waste and misuse. 

7 Approve purchases orders, payments, transfers, payroll and other financial 

transactions 

8 Approve and sign all contracts to which TEN/MET is party. 

9 Sign all cheques and bank transactions 

10 Review and approve monthly financial reports including monthly bank 

reconciliation. 

11 Supervise and monitor systems for quality assurance and compliance. 

12 Lead in fundraising and donor relations. 

8 


3.2.4 Other employees shall: 

1 Safeguard TEN/MET assets and resources. 

2 Contribute to preparation of plans and budgets and reports on the same. 

3 Implement and monitor assigned activities faithfully in relation to approved 

plans and budgets. 

4 Ensure payment requests made are for goods and services that are of quality, costeffective, 

used as intended and paid on time. 

5 Learn, implement and adhere to the stated Regulations, Policies, guidelines and 

procedures of TEN/MET. 

6 Support the Coordinator in fostering high standards of accountability and 

financial management at TEN/MET 

3.2.5 The Head of Finance and Administration shall: 

1 Ensure that financial management at TEN/MET is in accordance with the legal 

requirements, highest ethical standards, International Accounting Standards 

financial and Administrative Policies and Regulations. 

2 Ensure approved financial regulations and procedures are consistently and fully 

adhered to by all staff; and that any exceptions are kept to a minimum, warranted, 

justified, documented and authorized. 

3 Ensure TEN/MET is compliant with legal requirements regarding taxation, 

returns, fees and other financial statutory requirements. 

4 Ensure financial documents (such as cheques and vouchers) and resources (such 

as petty cash) are adequately safeguarded. 

5 Supervise management of petty cash. 

6 Monitor, report to and advise the Coordinator on expenditures in relation to 

budgets on a monthly basis and more often as needed. 

7 Verify that all expenditures are justifiable, adequately documented, consistent 

with TEN/MET Policies and Regulations, and properly authorized prior to 

effecting payments. 

8 Ensure that all incomes are properly receipted and banked. 

9 Prepare and maintain proper books of account using a professional accounting 

package and ensure all financial records and files are kept in a neat, clear and 

accessible manner. 

10 Maintain updated ledgers and registers as provided for herein and as may be 

established from time to time. 

11 Produce accurate and timely monthly reports such as trial balance, bank 

reconciliations, financial and replenishment reports, budget vs. expenditure, 

statutory returns, invoice, income, donor, VAT exemptions, and imprests. 

12 Keep an inventory of assets and undertake systematic and periodic checks of 

assets and stores (records and physical verification) and report on the same. 

13 Ensure all preparations for the external audit are completed timely, accurately 

and in a professional manner, and provide full cooperation to external auditors 

as needed. 

14 In consultation with the Coordinator, prepare financial reports as per donor 

requirements in a timely manner. 

15 Report to the Coordinator and advise him/her on all financial management 

related matters. 

16 Coordinate the preparation of annual budgets. 

17 Issue the timetable for yearend accounting procedures. 


3.3 Delegation 

Delegation of financial responsibilities in the absence of office holder shall be undertaken in 

the manner prescribed in section 3.4 of the Administration Policies. 

10 


4.0: Bank Management 

4.1 Purpose 

TEN/MET shall maintain its funds in accounts with safe, reputable, and cost-effective bank(s). 

The regulations below specify the manner in which TEN/MET bank accounts shall be operated 

and managed to ensure accountability, transparency and effectiveness. 

4.2 Bank Accounts 

1 The Board of Directors shall approve appointment of bankers and opening and closure 

of all TEN/MET bank accounts. In making its determination the Board shall take into 

consideration reputation of the bank, safety and security of funds, efficiency of service, 

cost of service and other criteria that it deems to be in the interest of TEN/MET. 

2 The Board of Directors shall also approve the rules governing the operation of bank 

accounts, including types and currencies of accounts, signatories and the authority 

levels of each signatory, minimum signatory requirement and other safety measures. 

3 All decisions regarding the operation of bank accounts shall be documented in 

writing and communicated with the relevant banks in writing by the Coordinator. The 

Coordinator shall sign all agreements made with TEN/MET bankers. 

4 All bank accounts shall be registered in the name of TEN/MET and not in the name of 

any individual or other entity. 

5 Unless determined otherwise, TEN/MET shall maintain accounts in Tanzania shillings 

and United States dollars with its bankers in Dar es Salaam. 

6 TEN/MET shall, wherever possible, place funds in interest bearing accounts and seek 

arrangements where bank charges are kept to a minimum. All earnings and bank 

charges shall be fully accounted for and documented on a monthly basis, and reflected 

in the annual books of account. 

7 The Head of Finance shall monitor bank balances on an ongoing basis and ensure 

cheques are not written in case of insufficient funds to avoid ‘bouncing cheques’, 

penalties and jeopardizing the reputation of TEN/MET. 

4.3 Signatories 

TEN/MET shall require cheques and other bank transactions to be signed by at least two 

authorized representatives. This shall normally be the Coordinator and/or the Programme 

Manager in Category A (as originators of payments) and the Head of Finance or Administration 

and Programme officer in Category B (as verifiers of payments) as specified below. Unless 

determined otherwise, signatories of TEN/MET bank accounts shall normally comprise the 

following: 

Category A 

• The Coordinator 

• Programme Manager 

Category B 

• Head of Finance or Administration 

• Programme Officer 

No person who is not an employee of TEN/MET with a valid contract shall be a signatory 

of TEN/MET bank accounts. The Head of Finance shall promptly advise the Coordinator 

to inform the Board and respective banks whenever an authorized signatory is no longer 

employed by TEN/MET. 


An employee who is serving the probation period of his/her contract may not be a signatory 

of TEN/MET bank accounts. 

The Head of Finance shall write cheques and shall have authority to present documents to 

banks, cash cheques, make deposits, obtain bank statements and other such transactions. 

4.4 Authorization Levels 

All cheques and other bank transactions of up to TShs 50,000,000/- or US dollars 50,000.00 

shall be signed by the Coordinator and one other signatory. All cheques and other bank 

transactions between TShs 51,000,000/= or US dollars 51,000.00 and TShs 65,000,000/= or 

US dollars 65,000.00 has to be authorised by the Chairperson. All cheques and transactions 

exceeding TShs.65,000,000/= or US dollars 65,000 has to be authorized by the Chairperson and 

one more Board member 

4.5 Other Control Measures 

1 All cheques and other important bank related documents shall be maintained in locked 

safes by the Head of Finance 

2 Prior to releasing cheques the Head of Finance shall arrange a ‘cheques list’ listing 

number and date of cheques issued, payee, amount and type of cheque to the bank. 

The cheques list shall be signed by at least two signatories. 

3 Payments shall, as much as possible, be made by cheques rather than cash. Cheques 

shall be made in the name of the payee and shall remain ‘closed’ (i.e. Account Payee 

Only). In limited circumstances when payment is made to an individual who does not 

maintain a bank account cheques may be made out in his/her name and ‘opened’ so 

as to enable the payee to cash the cheque upon presentation of his/her identity to the 

bank. Cheques made out to ‘cash’ (instead of name of payee) shall be avoided and used 

in only very limited circumstances where the previously mentioned options are not 

feasible, and in such cases the reasons for doing so shall be clearly documented. 

4 Payments by cheque will be made through approved Cheque Payment Vouchers 

(CPVs). 

5 Cheque Payment Vouchers must be complete in all respects. They shall contain details 

of date, authority, nature and reason for the payment, name and address of payee, 

statement of account to be charged, reference numbers and dates of bills, invoices, 

and other documents supporting the payment. References to supporting documents 

shall be written in such a way that it will be possible to correctly identify the payment 

should such documents be subsequently lost. 

6 Original invoices, bills, statements, etc. relating to and supporting a payment must be 

attached to the respective cheque payment voucher except where the volume, size or 

weight of such documents makes it impracticable to do so. In such cases the documents 

shall be separately filed and cross-referenced against the respective payment voucher. 

7 The authority to approve payments is vested in the Coordinator. Authority to any other 

person must be given expressly by the Coordinator. 

8 Any alteration to the particulars given on the vouchers must be signed for in full by the 

person making the material alterations before authorising the payment. 

9 The paying officer must be satisfied that the person claiming is, in fact, the one authorized 

to receive the payment or his authorized representative or assignee. Authority by the 

payee to the nominee shall be affixed to the original payment voucher to which it 

relates. 

10 Payments originated by the Bank on behalf of TEN/MET without the use of the TEN/ 

MET’s cheques, properly prepared in accordance with its established accounting 

procedures shall be closely examined for authenticity and approved by the Coordinator. 

These payments must be posted into the Cash Book in the corresponding month of 

entry in the bank statement. 

11 Cheques shall be issued in strict numerical sequence. 

12 


12 Every cheque shall be properly prepared in accordance with the relevant data as written 

on the Cheque Payment Voucher and shall be completed in such a manner as to deter 

improper and unauthorized alterations. 

13 A cheque to be issued in replacement of a cheque lost before presentation to the bank 

shall be issued only when the bank has confirmed the non-presentation of the lost 

cheque. The bank must first be instructed in writing to stop payment against such lost 

cheque. 

14 Cheques drawn on the TEN/MET’s bank account except those for cash and incidental 

payments to individuals must be crossed “ACCOUNT PAYEE ONLY”. 

15 A Cheque Issued Register shall be kept to record all cheques issued. Authorized 

signatories shall initial the register at the time of signing cheques. 

16 The Head of Finance shall clearly mark all cheques that are spoiled ‘CANCELLED’ in 

large print in indelible ink and maintain these in the cheque book. The relevant bank 

shall be notified of the same in writing when transmitting the ‘cheques list’. 

17 A Cheque Despatched Register shall be kept for recording all cheques despatched to or 

collected by payees. 

18 Unused cheques shall be kept under the custody of the Head of Finance, who will lock 

them up in a safe. 

19 Before a new cheque book is requisitioned from the Bank, the Head of Finance 

shall ensure that all cheque leaves of the previous cheque book have been properly 

accounted for. He/She shall also examine cancelled cheques to ensure that they have 

all been properly and adequately cancelled and that they are retained in the safe for 

audit purposes. 

20 A cheque book shall be obtained from the Bank after submitting to them a cheque book 

requisition form, duly signed by authorized signatories. 

21 Cheque Payment Vouchers shall be numbered following the sequence of the respective 

cheques. 

22 Payments will be recorded in the Bank Ledger in strict numerical sequence. 

23 Cheque Payment Vouchers shall be filed numerically in ascending order. Voucher 

forms, used and unused, together with related records and documents must be afforded 

reasonable security to preclude possible abuse. 

24 Bank statements shall be obtained from the bank promptly at the end of every month, 

together with debit and credit advices explaining entries in the bank statement which 

do not originate from TEN/MET. 

25 The Head of Finance shall review bank statements each month in time to prepare 

the monthly bank reconciliation statement. The Head of Finance shall notify the 

Coordinator of any anomaly or variance, and notify the respective bank of the same in 

writing within ten working days of receipt of the bank statement. 

26 The Head of Finance shall each month prepare an accurate bank reconciliation 

statement in accordance with internationally accepted accounting standards. The bank 

reconciliation shall be completed and submitted to the Coordinator no later than on 

the 14th of the month following the month for which the statement is prepared. The 

Coordinator shall review the bank reconciliation statement within one week of receipt. 

27 Original copies of all bank statements shall be neatly maintained in an organized 

manner in proper files established for the purpose. 

28 The Head of Finance shall produce an accurate annual bank reconciliation statement 

and submit it to the Coordinator no later than the 21st day of July each year. 

29 All transactions undertaken with banks shall be in writing. Correspondence delivered 

to the bank shall have a confirmation of delivery (such as fax receipt, signed dispatch, 

or copy stamped as received by the bank) and copies shall be maintained in appropriate 

files. Internal correspondence regarding major bank matters shall also be in writing 

and the Head of Finance shall ensure copies are filed in appropriate files. 


4.6 Foreign Exchange Management 

1 Funds received in foreign exchange shall normally be kept in a US dollar account. 

2 TEN/MET shall maintain most of its funds in the US dollar account so as to safeguard 

value of its resources from devaluation of the Tanzania shilling. For this reason TEN/ 

MET shall also seek wherever possible to receive funds from donors designated in 

foreign currencies. 

3 The Head of Finance shall monitor bank balances and recommend transfer of funds 

from the US dollar to Tanzania shilling account as needed and in good time. 

4 The Head of Finance shall seek to maximise the exchange rate used in transferring 

US dollars in TEN/MET’s favour. This shall normally be done through negotiating a 

favourable rate with TEN/MET bankers. 

5 The Head of Finance shall prepare a calculation of exchange rate gains or losses 

annually as the case may be and submit it to the Coordinator for information and 

decision making. 

14 


5.0: Budget Management 

5.1 Purpose 

This regulation outlines the manner in which budgets shall be developed, managed, monitored 

and reported on at TEN/MET, and the persons responsible for different parts of the budget 

process. 

5.2 Types of Budgets 

1 TEN/MET shall develop plans and budgets of the following durations and intervals: 

Type of budget 

To be completed by 

Overall strategy period (usually three years) 6 months prior to commencement 

Annual budget 

By June 15 of the same year 

Quarterly budget 

By the first day of the same quarter 

Activity budgets (in activity plans) 

At least 7days before activity 

2 The Head of Finance shall, undertake the budgeting process at TEN/MET and ensure that 

budgets are prepared and completed on time as specified above. 

5.3 Key Budget Characteristics 

1 TEN/MET budgets shall be cost effective and realistic 

2 Budgets shall be comprehensive and developed for programme, staff, administration 

and all other aspects. There shall be one overall budget, rather than separate ‘project’ 

budgets for each donor. Donors shall be asked to contribute towards the overall strategy 

budget. 

3 There shall be clear consistency and ‘easy to follow’ link between strategy and activity 

descriptions and budgets, as well as budget reports. 

4 There shall also be clear consistency and ‘easy to follow’ link between different types 

of budgets. The overall programme strategy budget shall be broadly earmarked to 

enable flexibility in determining specific activities and responsiveness to context. 

Annual budgets shall be more specific and earmark levels for each main activity or 

engagement. Quarterly budgets shall further specify amounts for each activity, and 

activity budgets shall provide detailed breakdown of estimated activity costs 

5 Overall strategy and annual budgets shall be open, transparent and availed to TEN/ 

MET members, staff and partners. Quarterly budgets shall be open, transparent and 

availed to staff. These shall also be accessible to members of TEN/MET and donors 

upon request. 

6 TEN/MET monthly, quarterly annual financial statements shall include budget 

performance reports showing comparisons between budgeted income and expenditure 

and actual outcomes and explanations for major variances. 

5.4 Budget Approval and Management 

1 All strategic plans and budgets and any amendments thereto shall be approved by 

the Board and endorsed by the AGM. Detailed activity plans aimed at implementing 

approved strategic plans and budgets and any amendments there to shall be approved 

by the Board. 

2 The Head of Finance shall ensure that budgets are accurately drawn out. He/she shall 

also monitor budget implementation with a view to ensuring that actual expenditure 

remains within approved budgets and advise the Coordinator accordingly 

3 The Head of Finance shall, by the 15th day of each month, produce and circulate to the 


Coordinator a budget vs. expenditure report for the previous month. The report shall 

also show accumulated expenditure for the year against annual budgets. 

4 Annual and quarterly budget performance reports shall be prepared and reviewed by 

staff and the Coordinator at the quarterly meetings, and more often when necessary. 

Semi-annual budgets reports shall be reviewed at semi-annual retreats at which 

the secretariat staff, Directors of the TEN/MET Board and selected members with 

appropriate capacity shall participate. 

5 The Head of Finance shall develop budget codes for all expenditures for each 

programme strategy period, and update them each year as needed. 

6 The appropriate budget code shall be allocated to each expense and noted on the 

Payment Voucher by the person preparing the PV. 

5.5 Variations and Contingencies 

1. Overall strategic plans and annual budgets shall normally have a contingency provision 

of between 5% and 10% respectively to cater for unforeseen contingencies, emergencies 

and other unexpected deviations. 

2. Budget execution by all persons responsible shall be done in a manner that is as close 

to the budget as possible. However, variations of up to5%for each budget line shall be 

permitted. 

3. Variations exceeding 15% in quarterly budgets shall require authorization of the 

Board. Variations exceeding 15% in overall strategy and annual budgets shall require 

endorsement of the Board of Directors and TEN/MET’s donors (where contractually 

applicable). Reasons for all variations exceeding 15% in annual budgets shall be clearly 

explained 

4. Amendments to budgets may be recommended at the semi-annual retreats and at Joint 

Annual Review and quarterly meetings, and at other times as necessary, and approved 

by the approving authority designated above in writing. 

16 


6.0: Credit 

6.1 Purpose 

The purpose of this regulation is to outline the management of credit at TEN/MET. 

6.2 Guiding Principles 

TEN/MET shall exercise conservative credit management. The granting of credit shall be 

limited to: 

1. relatively small amounts, 

2. limited and specified entities, 

3. provided only in circumstances where there are strong recovery assurances (including 

assessment of ability to repay), and 

4. Provided only where reasonable alternatives are not feasible. 

6.3 Staff loans 

1. TEN/MET employees shall be eligible to be considered for credit in the following 

circumstances only: 

1.1. for additional cost of health insurance exceeding the level provided by TEN/ 

MET 

1.2. for paying rent for employee’s housing 

1.3. for other uses that may be approved by the Board from time to time 

2. Granting of credit as noted above shall be further subject to the provisions provided for 

in the Administration Policies. 

3. Credit as specified above shall not constitute a right and the Chairperson upon 

consultation with the Coordinator and the Head of Finance may suspend or refuse 

credit requests where he/she determines this to be in the interest of TEN/MET, 

provided this is documented and explained to the respective employee/s. In making 

such determinations the Coordinator and the Chairperson of the Board shall exercise 

consistency and fairness. 

4. Credit provided to employees shall be automatically recovered through monthly 

payroll deductions. For health insurance top-up and housing rent recovery, the 

deductions shall be according to a schedule to be determined at the time of requesting 

credit, and in all cases credit shall be fully repaid no later than May of each year so as 

to avoid carrying liabilities into the new financial year. 

5. The Head of Finance shall be responsible for payroll deduction and for producing 

accurate and timely monthly outstanding credit reports. The reports shall be submitted 

to the Coordinator for verification and approval. Full written documentation shall be 

attached to payroll and maintained in organized files at all times, and monthly pay 

slips shall clearly indicate the amount and description of the deduction made. 

6. The employee shall be responsible for settling any and all outstanding liabilities owed 

to TEN/MET before claiming final settlement of salaries and benefits. The Head of 

Finance and Administration shall be responsible for ensuring all outstanding debts 

owed by the employee to TEN/MET are settled before effecting final payment of 

salaries and benefits. 

7. Each employee shall ensure he/she does not incur debts to TEN/MET that he/she 

is unlikely to be able to repay on time. Exceptions to repayment requirements noted 

above shall normally not be permitted. 

8. TEN/MET shall not provide loans to any employee for purposes not specified above. 


9. TEN/MET shall not incur any obligation through guarantees to third parties (such as 

banks) for loans or other facilities/services obtained by its employees. 

6.4 Credit to Others 

1. TEN/MET shall not extend credit to TEN/MET directors or members who are not 

employed by the organization. 

2. TEN/MET shall not extend credit to any other individuals. 

3. The Head of Finance shall maintain a debtor’s subsidiary ledger in which the balances 

of individual debtors shall be recorded and updated as and when movements occur in 

them. 

4. The Head of Finance shall maintain an accurate and timely register for all invoices and 

debts owed to TEN/MET. The duplicate copy of the invoice shall be stored in serial 

order in a file set up for the purpose. The Head of Finance shall produce a monthly 

report showing invoices generated, paid and outstanding for the month. The Head of 

Finance shall be responsible for following up all outstanding debts, including sending 

written monthly statement of account and reminders to debtors. 

18 


7.0: Incomes and Donor Relations 

7.1 Purpose 

The purpose of this regulation is to guide fundraising, income management, donor relations, 

and reporting requirements. 

7.2 Sources of Income 

TEN/MET may realize income from the following sources: 

1. donors and contributors (corporate and individual) 

2. bank interest and exchange rate gains 

3. investments 

4. sales of materials and publications 

5. fees and charges for services (e.g. library) 

6. sale/disposal of properties and other assets 

7.3 Fundraising and Donor Relations 

1. TEN/MET shall seek funding relationships with donors along terms that enhance 

transparency and accountability, while at the same time keeping reporting terms 

uniform and clear, so as to reduce transaction costs and enable TEN/MET staff to 

concentrate on implementing its core purposes. 

2. TEN/MET shall fundraise from donors in relation to its approved overall strategy 

budget. Wherever possible, TEN/MET shall seek donor commitments for the entire 

period of its overall strategy (usually three years). In exceptional circumstances, the 

Board may authorize fundraising for special activities outside its overall budget; 

provided doing so can be justified to be in the interest of TEN/MET and the reasons 

are clearly documented. 

3. TEN/MET shall provide one set of comprehensive reports in a uniform format to all its 

donors at a commonly agreed time as follows: 

3.1 comprehensive/ analytical annual narrative report of high quality and 

independently audited financial report by 30 September of the following year. 

3.2 progress brief (of 7-10 pages) and budget vs. expenditure report at the half year 

mark by 28 February of each year. 

4. In the interest of transparency and to provide a ‘full picture view’ the reports shall 

provide summary information on all the activities, incomes and expenditures of TEN/ 

MET. The Coordinator shall forward these reports to donors after the Board of Directors 

has reviewed and endorsed them. 

5. TEN/MET shall not accept funding under conditions that compromise its independence 

of thought, strategy, approach or core values, or that will enable the donor to exercise 

undue influence over decision-making, or significant additional reporting demands 

than those specified above. 

6. In order to reduce dependence and risk, TEN/MET shall generally strive to have more 

than one donor. Fundraising efforts shall seek to diversify sources of funding to two to 

four institutional donors over one overall strategy period. 

7. Disbursements by institutional donors (and all other incomes) shall be deposited 

into bank accounts established with the approval of the Board, and never into any 

individual or unauthorized accounts. TEN/MET shall monitor bank accounts and, 

after verification of disbursement, issue the respective donor with an official TEN/ 

MET receipt as well as an acknowledgement slip. 


8. All donor relationships shall be governed by a signed agreement between each donor 

and TEN/MET. Wherever possible, TEN/MET shall encourage its donors to develop 

common contract formats. The Head of Finance shall carefully review all donor contract 

drafts to ensure they are consistent with the stipulations stated above and advise the 

Coordinator accordingly, who shall be responsible for signing all donor contracts on 

behalf of TEN/MET. 

9. Originals of signed donor contracts shall be maintained in a special file established for 

the purpose in the office of the Coordinator. Copies of donor contracts shall additionally 

be filed and maintained by the Head of Finance in individual donor files. Copies of all 

donor contracts shall be open and be accessible to TEN/MET staff, directors, members 

and institutional donors. 

10. The Head of Finance shall establish and regularly update a table of donor commitments 

and actual disbursements, and furnish the same to the Coordinator. The Head of Finance 

shall monitor, follow-up and act on donor disbursements in a timely and systematic 

fashion, so as to ensure adequate cash flow at all times, and advise the Coordinator on 

the same. 

11. The Coordinator shall maintain regular communication with donors. In addition to 

requisite reports as stipulated herein and in donor contracts, TEN/MET shall share its 

publications and other relevant information with donors. 

12. There shall be one joint donor-TEN/MET meeting in Dar es Salaam each year to present 

reports and discuss matters of common interest, usually in September/October of each 

year. Representatives of all TEN/MET donors (including donors who do not provide 

funding to TEN/MET but with whom the organization cooperates in other ways) shall 

be invited to these meetings. The Coordinator, the Chairperson, Vice Chairperson 

and another Board Member shall normally participate in these meetings. Background 

documents for these meetings shall be circulated at least one week prior to the meeting. 

Minutes of the joint meeting shall be kept and circulated to all meeting participants 

and donors within one month of the meeting. 

13. The Coordinator shall lead in fundraising and maintaining donor relations, and shall be 

assisted in this process by the Programme Managers/Officers. Board of Directors shall 

also contribute towards fundraising and donor relations. The Head of Finance shall be 

responsible for monitoring overall and timely compliance with donor contracts, and 

advising the Coordinator on the same. 

7.4 Management of Incomes 

1. TEN/MET shall maintain an official receipt book in triplicate that shall be printed and 

pre-numbered. The Head of Finance shall be responsible for safeguarding all receipt 

books, whose numbers shall be recorded in stock records and whose receipt and 

issuance shall be clearly recorded. Any loss or theft of receipt books shall be reported 

immediately to the Coordinator in writing. All receipts shall be accounted for. The 

Head of Finance shall mark ‘CANCELLED’ in bold indelible ink across all three copies 

of spoiled receipts, and maintain these copies in the receipt book. TEN/MET shall issue 

an official TEN/MET receipt for all income received including retirement of unused 

imprest funds (except for deductions from payroll as provided for herein), and arrange 

to provide an official TEN/MET receipt at the time of receiving funds. 

2. All cash receipts shall be stored in a locked safe while at TEN/MET. All funds received 

shall be promptly banked intact in official TEN/MET bank accounts and may not be 

used for any other purpose. Stamped and signed copies of all deposit slips shall be 

obtained and maintained in secure files. 

3. TEN/MET shall maintain an accurate and updated record of cash receipts and 

payments by way of a cash book for each bank account and a petty cash book, and 

submit to the Coordinator reports on the organization’s cash position on a monthly 

basis. The records shall be reconciled with bank statements and show date of receipt, 

receipt number, name, amount, purpose, date banked and verification of deposit. 

20 


8.0: Expenditure 

8.1 Purpose 

The purpose of this regulation is to establish the policies and procedures that shall guide the 

management, authorization, documentation, accountability and reporting of expenditure at 

TEN/MET. 

8.2 Payments 

1. Payments shall only be made for bona fide expenses that further TEN/MET objectives. 

2. Payments shall be made on a timely basis and without undue delay so as to maintain 

good relations with suppliers. Where goods/services have been satisfactorily delivered 

and all requisite documentation has been adequately lodged by the supplier, TEN/ 

MET, shall ensure payment is effected as soon as possible and no later than two weeks 

from the date when the satisfactory demand for payment was received. TEN/MET shall 

maintain Payment Voucher (PV) books that are in triplicate, printed and pre-numbered. 

In the interest of accountability and proper control of resources, payments shall only be 

made against Payment Vouchers that have been approved by the Coordinator. TEN/ 

MET shall keep good records of PV books and ensure sufficient numbers of the same 

are held in stock at all times. 

3. In the interest of enhancing understanding, transparency and accountability, and for 

third party and future reference, all PVs shall contain all information required and 

relevant supporting documentation as specified below. No payment shall be made 

to third parties without an invoice (or written request for payment) or receipt if the 

material was purchased directly. 

4. The Head of Finance shall ensure that the information that is provide (including 

supporting documentation) is accurate, truthful, pertinent and complete, and shall in 

the event of doubt or concern seek advice of the Coordinator. The specific information 

requirements for the PV are outlined in the box below: 

1. Paid To/Address 

Payee’s full name and address; normally with post office box number and city. 

Where this is not available alternate information that will enable the Payee to be 

tracked if needed (such as telephone contact or specific physical location) shall 

be noted. 

2. Payment Date 

Actual date of first writing the payment voucher (not of making the payment). 

3. File Reference 

Specific number of file where one may find relevant information related to the 

expenditure (such as activity reports, minutes and correspondence) that is usually 

too bulky to attach to the PV. 

4. Mode of Payment 

Notation of request of mode of how payment should be made. The options are: 

closed (cheque that can only be deposited into an account), open (cheque in the 

name of a specific payee but may be cashed), cash cheque (cheque made out to 

cash that may be cashed by any bearer), and petty cash (made in cash by TEN/ 

MET out of its petty cash fund). 

5. Description/Purpose 

Detailed explanation of the nature of expenditure and its purpose and relevance 

for TEN/MET. Quantities and unit prices shall normally be noted here. If space 


does not allow details may be provided on a separate sheet(s) to be attached to 

the PV. 

6. Supporting Documents 

Further documentation that provides relevant information about the relevance, 

purpose and particulars of the expenditure, as well as its legitimacy. It includes 

LPOs, invoices, delivery notes, copies of contracts, evidence of purchase or 

completion of work, and any other documentation that shall help explain 

and justify expenditure. Documents to be attached to the PV and listed in the 

description section of the PV. 

7. Amount 

Amount to be paid stated clearly in both numbers (with amounts for specific items 

listed separately) and words. Payments to be made in foreign exchange stated in 

the space provided (and TEN/MET to calculate value in Tanzania shillings at 

official prevailing rates and insert in the space provided). 

8. Budget Description and Code 

The budget description and code to which the expenditure is to be charged. 

9. Payment Voucher Authorization Process 

Signature and date in the box provided of the officers responsible to indicate that 

they have fulfilled their responsibilities in relation to the PV and are satisfied that 

the payment should be made. 

10. Payment and Receipt Information 

The person making payment to sign/date in box provided. The person receiving 

the payment to sign/date in box provided AND print name in capital letters 

next to ‘Recipient Name’. The Head of Finance to record receipt numbers and 

date, source of payment (bank account or petty cash from which payment is to be 

made), cheque number and date (if applicable). 

12. Notes (at the bottom of payment voucher) 

Space for explanatory notes (that may be used by any officer involved in the 

process) to explain unusual circumstance or deviations from the norm/policies 

in relation to expenditure; left blank if not applicable. 

5. To minimize risk, wherever possible payments shall be made by closed cheque (or 

bank transfer) rather than cash (also see Regulation 4.5.4). 

6. Any amendments to PVs shall be made by placing one clear strike over the incorrect 

information and replacing it with the correct information, and all such changes shall 

be initialled by the Coordinator. Whiteout or other means to completely block out the 

incorrect part shall not be used. Where amendments make the PV unclear or difficult 

to understand the PV shall be CANCELLED (and filed in the PV book) and a fresh PV 

written. 

7. The first copy of the PV shall constitute the original and shall be filed in monthly 

expenditure files together with all supporting documentation. The second duplicate 

copy shall be filed in serial order in a separate file established for the purpose. The 

third copy shall remain in the PV book and shall be stored securely. 8.3 Payment 

Authorization 

8. In order to enhance transparency, ensure control and responsibility for all budgets, 

and strengthen accountability (checks and balances) all payments (unless specified 

otherwise herein) shall normally involve three levels of staff: the employee requesting 

the payment, the Coordinator and Head of Finance. The roles and responsibilities of 

each level shall be as follows: 

22 


8.4 Petty Cash 

1. TEN/MET shall maintain petty cash funds at its offices to enable efficient payment of 

small expenditures for which cheque payment is not practicable. 

2. The petty cash fund limit shall be Tshs. 500,000/=, float limits may be reviewed as and 

when required. 

3. All requirements regarding expenditure noted above and elsewhere in TEN/MET 

Policies and Regulations shall apply in effecting payments from the petty cash fund. 

No payment shall be made that is not consistent with these requirements. 

4. The maximum limit for any payment by petty cash shall be TShs 200,000/=; payments 

above this amount shall be made by cheque. Any exceptions to this requirement shall 

be exercised only rarely where the Coordinator determines it to be in the interest of 

TEN/MET, provided that reasons for the exception are clearly documented. 

5. Petty cash funds shall be retired at the close of each month and more often if necessary. 

The Head of Finance, shall maintain petty cash, shall strive to ensure retirements are 

lodged in good time before amounts run out so as to minimise disruption. Replenishment 

shall only be done after satisfactory retirement of petty cash expenditure and shall be 

for an amount equivalent to total satisfactory retirement. Replenishment of petty cash 

shall not exceed the fund limit specified above. 

6. Replenishment of petty cash funds shall be prepared by the Head of Finance and 

approved by the Coordinator. Replenishments shall not be done where there are 

substantial queries or problems with any expenditure in the retirement. 

7. Petty cash funds shall be segregated from other funds and kept in the custody of the 

Head of Finance, who shall be responsible for its safekeeping, in a locked safe. 

8. Petty cash funds may not be used or loaned for any other purpose than as specified 

herein. The Head of Finance and/or Programme Manager shall conduct periodic ‘spot 

checks’ of petty cash balances. Any discrepancies shall be noted in writing and brought 

to the attention of the Coordinator. 

9. The Head of Finance shall prepare an accurate and timely report each month of all 

petty cash expenditure for review and approval of the Coordinator. 

8.5 Imprests 

1. Imprests (funds provided in advance) may be made available to TEN/MET employees 

and in limited circumstances to TEN/MET partners, where the precise costs of 

implementing an upcoming TEN/MET activity cannot be known, such as, field travel 

and workshop. 

2. Imprests may only be requested towards the costs of implementing activities that are 

consistent with TEN/MET Policies and Regulations and approved plans and budgets. 

Imprests may only be used in relation to activities for which the imprest was granted, 

and may not be used for any individual or any other benefit. 

3. Imprest requests shall be prepared well in advance of the activity to be undertaken in 

the form prescribed for the purpose by the employee requiring the advance. It shall 

contain a brief explanation of the activity, a breakdown of the estimated costs and the 

budget code to be charged. Once satisfied with these details and its appropriateness, the 

respective controller of the expense code to be charged shall recommend the imprest 

request to the Coordinator, who will review and approve it if satisfied. 

4. An approved imprest shall normally be paid through an open cheque in the name 

of the employee requesting the imprest, who shall be responsible for safeguarding 

and accounting for funds received in an accurate and timely manner. The employee 

concerned shall in the course of undertaking the activity secure genuine receipts, 

signatures when payments are made to individuals and other documentation to 

demonstrate the validity of payments made. 

5. Imprests shall be retired promptly, that is, within seven working days after completion 

of the purpose for which the advance was granted and/or the concerned employee 


has returned to the office. The employee concerned shall retire the imprest in the form 

prescribed for the purpose and attach supporting documents in a clear, accurate and 

organized fashion. The Coordinator and Head of Finance shall scrutinise the retirement 

and if satisfied approve the document. 

6. In cases where approved actual costs exceed the imprest amount TEN/MET shall 

promptly reimburse the difference to the concerned employee. In cases where approved 

actual costs are less than the imprest amount the employee shall promptly reimburse 

the difference to TEN/MET and issue an official receipt for the amount received, which 

shall be banked intact by him/her. 

7. The Head of Finance shall maintain a subsidiary ledger for accurate and up-to-date 

recording of individual employee imprest drawings and retirements at all times. Each 

imprest shall be assigned a unique serial number and recorded in a register established 

for the purpose produce an accurate imprest report each month that shall show all 

outstanding, new and resolved imprests that occurred that month and forward it to the 

Coordinator. 

8. PVs for issuance of imprests shall be assigned a special imprest accounting code 

(holding code). Upon retirement of imprest the Head of Finance shall be responsible 

for recoding so as to ensure the appropriate expense codes are accurately charged. 

24 


9.0: Payroll 

9.1 Purpose 

The purpose of this regulation is to establish basic guidelines for the effective management 

of the TEN/MET payroll. These regulations shall be read in conjunction with HR and 

Administration Policies regarding salaries and benefits. 

9.2 Payroll Authorization 

1. Only long term contract employees with valid contracts who are working or on 

authorized absence shall be placed and appear on the TEN/MET payroll. 

2. The payroll shall contain and be consistent with the provisions for salaries and 

benefits stipulated in the Administration Policies and signed contracts, and authorized 

amendments of these. 

3. Head of Finance shall be responsible for maintaining, updating and preparing the 

payroll each month, and of ensuring its accuracy and integrity. This shall include 

compliance with all legal and tax requirements (and their amendments as may be 

made from time to time) as well as TEN/MET Policies and Regulations. 

4. All authorised payroll changes will be effected by The Head of Finance. 

5. All monthly payrolls including notes on changes/anomalies shall be approved and 

signed by the Coordinator in the case of support staff. 

6. No TEN/MET long term contract employee shall be paid salary or other related benefits 

outside the payroll except for as provided for in the Policies or Regulations. 

9.3 Payroll Features 

1. The TEN/MET payroll shall contain the following information: name of employee, 

position, salary grade/level, basic salary, allowances, pension payments, gratuity, tax 

rates and calculations, and net pay. In addition, the payroll shall make provision for 

showing house rent and other applicable loans (deductions and remaining balances) 

and deductions of various types. 

2. The payroll shall be directly linked to the generation of pay slips which shall provide 

all basic information noted above. 

3. The payroll mechanism shall automatically record and calculate accumulated amounts 

for the year of categories noted above. 

4. The payroll mechanism shall provide information in a clear, transparent and easy to 

follow manner, and enable queries to be conducted with relative ease. 

5. Payroll information shall be made available to the Board, Coordinator and statutory 

bodies, but otherwise shall remain confidential. 

9.4 Payroll Processing 

1. Payment shall usually be effected on the 25th day of each month, or the prior working 

day if the 25th is a public holiday. The Coordinator may authorise payment in December 

to be made earlier so as to enable employees to receive payment prior to commencing 

the holiday season. 

2. Salary advances and loans other than those specified herein shall not be permitted. 

3. All officers involved in the payroll process shall strive to fulfil their functions in a timely 

manner so as to ensure payment can be made in a timely manner. Head of Finance shall 

prepare information regarding contractual changes, deductions for private use and 

other relevant data at least 6-8 working days prior to the date of payment and shall 

submit the payroll to the Coordinator for approval at least 3-5 working days prior to 

the date of payment. 


4. Payments shall normally be made by electronic transfer into the private bank accounts 

of each employee and a printed salary slip shall be produced each month for every 

employee’s signature. TEN/MET shall be responsible for transfer charges if any. In 

exceptional circumstances where an employee does not have a local bank account 

TEN/MET may for a temporary period provide payment by open cheque. 

5. TEN/MET shall prepare and effect all necessary monthly statutory payments in an 

accurate and timely manner. These shall include income tax (PAYE) and pension 

payments. 

6. TEN/MET shall prepare accurate monthly and annual statutory returns, such as 

VAT, SDL, social security contributions, and consolidated tax reports P9 and P11, and 

arrange to submit them to relevant authorities within the deadlines provided by the 

laws concerned. . 

7. TEN/MET shall calculate benefits and liabilities that apply to any employee whose 

contract has ended or is about to end, and ensure final settlement of salaries and 

benefits is only effected after all debts have been settled and in accordance with the 

provisions herein and in the Administration Policies. 

9.5 Internship Stipends and Consultancy Payments 

1. Persons participating in the internship programme at TEN/MET shall normally be 

eligible to receive a flat modest monthly stipend (as compensation for estimated 

transport and other costs incurred in the course of doing the internship). The intern 

shall initiate the process at the close of the month by reporting on activities done and 

outputs achieved, submitting an invoice/request for payment with a copy of contract, 

and forwarding it to his/her Supervisor. The Supervisor shall scrutinize the request and 

if satisfied forward the recommendation and supporting documents to the Coordinator 

and Head of Finance and Administration who will arrange for a PV to be written and 

payment to be effected. 

2. Payment to consultants and other short term (casual) employees of TEN/MET shall 

be in accordance with the terms of their contracts. The consultants shall initiate the 

process in accordance with the terms of their contract, and submit an invoice/request 

for payment preferably with copy of contract, and forwarding it to his/her Supervisor. 

The Supervisor shall scrutinise the request and if satisfied prepare a requisition with 

supporting documents. 

26 


10.0: Daily Subsistence Allowances (DSA) 

10.1 Purpose 

The purpose of this regulation is to establish the conditions under which employees and TEN/ 

MET partners shall be eligible to receive DSA payments and provide for the levels and terms 

of these benefits. 

10.2 Eligibility and Coverage 

1. A flat per night DSA rate shall be paid to employees who are travelling on duty and 

are required to spend the night out of their normal duty station. Persons who are out 

of station for a long duration but do not spend the night out of station shall not receive 

DSA payments; they shall instead be eligible for meal or transit allowances as stipulated 

below. 

2. TEN/MET DSA rates shall be the same for all employees regardless of position or 

status. The same DSA rates shall generally apply for non-employees (such as Board of 

Directors, members, partners, staff and national consultants). 

3. The DSA shall cover the cost of accommodation, meals, local transport between hotel 

and office, communication, laundry and all incidentals. The cost of transport between 

towns while undertaking fieldwork and other non-subsistence expenses directly 

related to the fulfilment of officially assigned duties shall be reimbursed separately 

and additional to the DSA. 

4. In cases where actual costs incurred are below DSA provided the employee shall retain 

the difference. In cases where actual costs incurred were higher than DSA provided the 

employee shall be responsible for the difference. In exceptional circumstances of the 

latter case the employee concerned may petition the Coordinator to pay the difference 

where it can be demonstrated that actual costs were higher than provided and there 

were no other reasonable alternatives available. In such cases the Coordinator shall 

consult with the FAM and Chairperson and make a final, fair determination and 

document the reasons for such a decision. 

5. The DSA rates established herein shall normally not apply in circumstances where an 

employee is out of his/her working station and stays in one location for 15 or more 

consecutive nights. In such cases the employee shall be provided with DSA amount 

calculated on the basis of estimated costs of reasonable accommodation as determined 

by the Head of Finance and Administration and approved by the Coordinator on a case 

by case basis. 

6. An employee travelling on duty that does not spend a night out but is required to be 

out of his/her working station for eight or more consecutive hours shall be eligible to 

receive a flat transit rate. Alternatively, the employee shall be eligible to be reimbursed 

the cost of breakfast, lunch or dinner taken on production of receipted bills provided 

that the amount claimed is reasonable. 

7. When accommodation and meal costs of an employee travelling on duty outside 

Tanzania are paid directly by another organization the employee shall be eligible 

to receive a flat stipend per international visit once each year to cover purchase of 

appropriate clothes and other incidentals. 

10.3 Rates 

1. DSA and all rates as explained above shall be based on careful estimates of actual 

costs of staying at a reasonable, clean and safe hotel, and not treated as an avenue for 

enhancing employee incomes. 

2. DSA and other allowance rates (and the basis of their calculation) shall be proposed 

by the Head of Finance and determined by the Coordinator for recommendation to the 


10.4 Current rates 

Board of Directors after taking into consideration the advice of other members of the 

Management Team. The Board of Directors shall approve DSA and other allowance 

rates. 

The rates below are current rates that apply to TEN/MET. They are shown for illustrative 

purposes and are subject to change as provided for in 10.3.2 above. 

CURRENT DSA RATES (subject to change) 

International travel outside Tanzania 

DSA rates covering full costs, including transport from hotel to office/main workplace. 

67% of published United Nations (UN) rates 

Out of Pocket costs (for travel outside East Africa), where full board (food and accommodation) is 

covered but no other provision is made available 

A flat out of pocket of US dollars 80 shall be provided per each trip. 

Where accommodation is paid for directly but some or all meals are not: 

US dollars 40 per day 

Local travel allowances 

DSA rates covering full costs, including transport from hotel to office/main workplace. 

• All regional towns (including Dar) Tshs.80,000 per night 

• All district towns Tshs.65,000 per night 

• Other Tshs.30,000 per night 

Rates are based on nights spent/slept out of station. 

Where accommodation is covered but meals are not: 

• All regional towns and cities Tshs.30,000 per meal 

• All district towns Tshs.25,000 per meal 

• Other Tshs.15,000 per meal 

Where full board is covered but no out of pocket allowance is provided 

Tshs.20,000 per night to cover laundry, communication and all other incidental costs. 

While in bus, boat or train transit on official duty for 5 or more hours 

Tshs 20,000 per day. 

Petrol and fuel Allowances 

TShs 40,000 Flat rate per day 

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10.5 Vehicles 

Purpose 

TEN/MET is likely to own vehicles in future to facilitate the work of the organization. This 

Policy outlines the entitlements, rules and regulations for the effective use and management of 

vehicles and transport at TEN/MET. Unless stated otherwise all references to vehicles herein 

apply equally to both motor vehicles and motorcycles. The Head of Finance and Administration 

shall be responsible for managing all aspects of vehicle and transport use at TEN/MET. 


11.0: Year-end Adjustments 

11.1 Purpose 

The process of drawing up financial statements involves, among other things, closing of 

accounts. The procedures for closing accounts are preceded by updating of the accounts to 

include only items pertinent to the period under review in order to conform comply with the 

accrual basis of accounting and the matching concept. 

It is also often necessary to correct errors, whether of principle or clerical, made in the course 

of writing up the books of account. 

Provisions must be made against expected future charges arising from activities of the current 

period but the precise amounts of which cannot presently be accurately determined. 

The procedures and controls for dealing with these adjustments are explained in this part of 

the Manual and are intended to ensure that: 

1. all accruals and prepayments are properly determined and treated in the accounts for 

the year to which they relate; 

2. all adjustments to the accounts are properly authorized; 

3. assets and liabilities are fairly stated in the accounts. 

11.2 Controls 

Amounts for accrued expenses and prepayments at the end of the accounting period shall 

be prepared in the form of a memo by the Head of Finance. The Coordinator shall 

approve the memo before the accounts are adjusted. 

1. Estimates of provisions to be charged in the period under review shall also be prepared 

by way of memo by the Head of Finance. The Coordinator shall also approve these 

estimates before adjustments are affected. 

2. Journal Vouchers correcting errors shall be prepared by the Head of Finance and the 

vouchers will be approved by the Coordinator. 

3. Amounts for prior period adjustments shall be compiled. Only where these give rise 

to double entry adjustments shall Journal Vouchers be prepared to cover them. Single 

entry adjustments shall be made by restating the balances of the affected accounts 

brought forward to the accounting period under review. 

4. The Coordinator shall approve the adjustments memo before adjustments are made. 

30 


12.0: Closing the Books of Accounts 

12.1 Purpose 

The primary purpose of the accounting function of TEN/MET is the production of financial 

information for two main uses, viz. 

1. Annual financial statements to enable management discharge their obligation for 

external reporting. 

2. Periodical interim accounts and other statistical reports to aid management in the 

efficient running of the TEN/MET. 

3. The process of drawing up financial statements and interim accounts involves 

closing the books of account, preparing a Trial Balance, drafting financial statements/ 

accounting reports, and submitting the statements to Board Audit committee prior to 

external auditing. 

This part of the Manual deals with the procedures necessary for a systematic approach to the 

task of closing the books of account. 

12.2 Month-end Procedures 

12.2.1Closing the Books 

At the month-end TEN/MET’s Books of Account are up-to-date only to the extent 

that financial transactions have been recorded in the Books. It may still be necessary to 

carry out the following procedures: 

13.2.1.1 On the last day of every month all unposted source documents must be recorded in 

the appropriate ledgers. 

13.2.1.2 Where comparative financial data for the same period is available from other sources, 

then it should be compared with the general ledger balances. Similarly, where quantities 

are available they should be valued and such values compared with the corresponding 

ledger balances. 

In case interim accounts are to be finalized and printed out, then accounts must be 

adjusted for accruals, provisions and contingencies pertinent to the month/period 

under review as set out in Section E.11 of this Manual, before ascertaining the ledger 

account balances. 

12.2.2 Trial Balance 

After the necessary adjustments are made to the accounts, a Trial Balance shall be 

compiled, on the basis of which the TEN/MET’s Income Statement and Statement of 

Financial Position shall be prepared. 

12.2.3 Year-end Procedures 

12.2.3.1 Closing the Books of Accounts 

The procedures for closing the books of account at the year-end are the same as for 

month-end closing. Two points are note-worthy, however: 

1. All year-end adjustments must be fully dealt with in the books of account 

before the accounts are closed. 

2. A checklist is prepared to ensure that financial statements are prepared within 

a specific timetable to accord to statutory requirements and/or the policy of 

TEN/MET. This is dealt with below. 


12.2.4 Year-end Procedures Checklist 

The use of a checklist helps to avoid a last minute rush and/or the complete oversight 

of an important year-end procedure. It, therefore, includes all important year-end 

procedures to be carried out, reports to be prepared, and the target completion dates 

for such procedures and reports. 

The Head of Finance shall ensure the checklist is prepared for issuance by the 

Coordinator to all officers concerned at least three months before the year-end. 

It will be the responsibility of the Coordinator to ensure that all concerned comply with 

the checklist deadlines as issued. 

The checklist (format set out in the table below) is divided into four columns, as follows: 

(a) Procedure/Report 

The procedures to be carried out and reports to be prepared are listed in this 

column. This list may be amended from time to time by the Coordinator to 

conform to best practice. 

(b) Responsible Officer 

The name or designation of the officer responsible for executing the procedure 

or preparing the reports is indicated in this column. 

(c) Completion Date 

The planned dates by which the procedures and/reports listed must be 

completed in order to achieve the overall target date for producing the 

financial statements are listed in this column. The planned dates are decided 

on and listed at the time of drawing up the checklist. Actual dates achieved and 

variances from plan are listed as performance progresses. 

(d) Remarks 

This column is used for recording any comments relevant to the checklist 

or actual performance of the work. It can also be used for explanation of 

material variances between planned and actual completion dates but if space 

is insufficient such explanation is to be given in a separate sheet, suitably 

referenced. 

32 


13.0: Reports 

13.1 Purpose 

The basic duty of the management of TEN/MET is to achieve the main objectives of the 

organization. The first responsibility therefore to establish concisely what is to be done, deploy 

resources and monitor performance in accordance with the agreed plan. This calls for a sound, 

relevant and up to date feedback system. 

Here are prescribed reports to be prepared on daily, weekly, monthly and quarterly bases. 

These frequencies are necessitated by the value obtainable from such reports and its relevance 

to the established routine of the firm. 

13.2 Report Types 

The following reports have therefore been selected to form the basis of a management 

information system: 

13.2.1 Daily Reports – Cash Position 

13.2.2 Monthly Reports 

• Statement of Financial Position 

• Statement of Comprehensive Income 

• Statement of Cash Flows 

13.2.3 Quarterly Reports 



• Statement of Changes in Equity and Reserves 


13.2.4 Annual Reports 

• Directors’ Report 



• Statement of Changes in Equity and Reserves 


13.2.5 Daily Reports - Content 

13.2.5.1 Cash Position 

The Cash Position Report will be completed at the end of every working day. It will 

indicate the cash position of TEN/MET at the commencement of the day, total receipts 

during the day, disbursements in total made for the day, and closing cash position. The 

report will provide the day’s movement of all funds including petty cash and bank 

account. 

The Cash Position Report will be submitted to the Coordinator to appraise him/her 

on the liquidity position of the TEN/MET before new commitments are made the next 

working day. 

13.2.6 Monthly Reports - Content 

i. Statement of Financial Position (SoFP) 

The Statement of Financial Position will provide the financial state of affairs 

TEN/MET. It will thus show the assets, both non-current and current, as well 


as the working capital, that is, net current assets/liabilities, at the date of the 

statement. It will also indicate the total capital employed and the different 

funds used for financing these assets. 

The Statement of Financial Position will be prepared for the information of the 

Coordinator to indicate the state of affairs of organization. 

ii. Statement of Comprehensive Income (SoCI) 

The Statement will show for the month and the previous month, the cumulative 

income generated for the period and the expenditure incurred to support the 

period’s operations. Thus a surplus or deficit will also be shown, being the 

difference between the income and the expenditure. 

The SoCI will be submitted to the Coordinator to show him/her the performance 

achieved during the period under review. 

iii. Statement of Cash Flows (SoCF) 

The main purpose of the SoCF is to report on the cash receipts and cash 

disbursements of the TEN/MET during the month. A secondary purpose is to 

report on the financing of the organization’s operating activities for the month. 

Since cash flows are vital to the financial health of the organization, the statement 

will provide useful information for forward planning of the organization’s 

short and long term activities. 

iv. Debtors 

A debtors schedule will be produced as an articulation of total debtors shown 

in the SoFP. It will show the names of all clients from whom invoices/bills are 

unpaid. It will show the amount of each debt analysed into one, two, three, and 

over, months. Separate schedules will be prepared for staff debtors, sundry 

debtors and other receivables. 

The debtors schedule will inform the Coordinator as to the extent of firm’s 

funds tied up in debt. 

v. Creditors 

A creditors schedule will also be compiled comprising of client accounts, 

sundry creditors, and other payables. The schedule will support the Creditors 

amount in the SoFP. It will show the amount of each liability analyzed into one, 

two, three, and over, months. 

The creditors schedule will inform the Coordinator the extent of the 

organization’s short-term liabilities and indicate the possible impact of these 

liabilities on the organization’s liquidity position. 

13.2.7 Quarterly Reports - Content 

i. Statement of Financial Position 

The Statement of Financial Position will provide the financial state of affairs of 

the TEN/MET as at the end of the quarter. It will thus show the assets, both 

non-current and current, as well as the working capital, that is, net current 

assets/liabilities, at the date of the statement. It will also indicate the total 

capital employed and the different funds used for financing those assets. 

The Statement of Financial Position will be prepared for the information of the 

Coordinator to indicate the state of affairs of the organization. 

ii. Statement of Comprehensive Income 

The Statement will show for the quarter and the previous quarter, the cumulative 

income generated for the period and the expenditure incurred to support the 

period’s operations. Thus a surplus or deficit will also be shown, being the 

difference between the income and the expenditure for the quarter. 

The Statement of Comprehensive Income will be submitted to the Coordinator 

to show him/her the performance achieved during the period under review. 

34 


iii. 

Statement of Cash Flows 

The main purpose of this statement is to report on the cash receipts and cash 

disbursements of the TEN/MET during the quarter. A secondary purpose is to 

report on the organization’s operating activities for the quarter. The cash flow 

statement will report on the effects on cash during the quarter of the operating 

activities. 

Since cash flows are vital to the financial health of the organization, the statement 

will provide useful information for forward planning of the organization’s 

short and long term activities 

iv. Debtors 

A debtors schedule will be produced at the end of each quarter to support the 

amount stated in the SoFP. It will show the names of all persons from whom 

payments for services rendered are receivable. It will categorise the debts into 

age bands of one, two, three, six months and over six months. Separate schedules 

will be prepared for staff debtors, sundry debtors and other receivables. 

The debtors schedule will inform management as to the extent of the 

organization’s funds tied up in debt and recovery possibilities. 

v. Creditors 

A creditors schedule will also be compiled comprising of creditors for supplies 

procured, sundry creditors, and other payables. The schedule will support 

the creditor’s amount stated in the Statement of Financial Position. . It will 

categorize the debts into age bands of one, two, three, six months and over six 

months. 

The creditors schedule will inform the Coordinator the extent of the 

organization’s short-term liabilities and their impact on the organization’s 

liquidity position. 

13.2.8 Annual Reports - Content 

i. Statement of Financial Position 

The SoFP will provide the financial state of affairs of TEN/MET as at the end 

of its financial year. It will thus show the assets, both fixed and current, as 

well as the working capital, that is, net current assets/liabilities, at the date of 

the statement. It will also indicate the total capital employed and the different 

funds used for financing the assets. 

ii. Statement of Comprehensive Income 

The SoCI will be prepared along with the SoFP. The statement will show for 

the current and the previous year, the cumulative income generated for the 

period and the expenditure incurred to support the period’s operations. Thus a 

surplus or deficit will also be shown, being the difference between income and 

the expenditure for the period. 

iii. Statement of Changes in Equity and Reserves 

This statement (SOCE) will show the position of the interest of the owners/ 

promoters of TEN/MET at the end of the period. 

iv. Statement of Cash Flows 

The main purpose of this statement is to report on the cash receipts and cash 

disbursements of TEN/MET during the year. A secondary purpose is to report 

on the organization’s operating activities for the respective year. The SoCF 

will report on cash flow effects arising from the operating activities of TEN/ 

MET for the year in question. The information given will assist management in 

planning the future liquidity position of the organization. 

v. Debtors 

A debtors schedule will be produced to support the amount stated in the SoFP. 


vi. 

It will show the names of all persons and entities from whom payments for 

services rendered are receivable. It will show the amount of each debt analyzed 

into one, two, three, and over, months. Separate schedules will be prepared for 

staff debtors, sundry debtors and other receivables. 

Creditors 

A creditors schedule will also be compiled comprising of creditors, sundry 

creditors, and other payables. The schedule will support the creditors’ amount 

in the respective SoFP. It will show the amount of each liability analyzed into 

one, two, three, and over, months. 

The creditors schedule will show the extent of the firm’s short-term liabilities at 

the end of the financial year. 

13.3 Year-end Procedures Checklist 

Procedure/Report 

Responsible 

Officer 

Completion Date 

Plan Actual Variation 

Remarks 

1. All bank statements 

obtained 

2. Bank balance confirmation 

3. All year-end adjustments 

as per Section E.11 of this 

manual effected 

4. Preparation of Bank 

Reconciliation Statements 

5. Payroll Control Summary 

and monthly deduction/ 

contribution lists 

prepared. 

6. All daybooks, subsidiary 

ledgers and the General 

Ledger updated 

7. Reasonableness of general 

ledger figures checked. 

8. Trial balance printed out. 

9. Schedules printed out: 

(a) Staff Debtors: 

(i) Loans 

(ii) Imprests/Advances 

(b) Loans 

(c) Interest 

(d) Creditors 

(e) Fixed Assets 

(f) Depreciation 

(g) Provisions 

(h) Prepayments 

(i) Contingent liabilities 

(j) Important Commitments 

(k) Miscellaneous Income. 

10. Draft accounts prepared. 

11. Draft Accounts submitted 

to the Board of Directors 

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38 



Plot No. 383 Mtitu Street, Upanga 

P.O. Box 13547, Dar es Salaam. 

Tel: +255 22 2150793 / Fax: +255 22 2152237 

Email: coordinator@tenmet.org / Website: www.tenmet.org 

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