ASDP Basket Fund - Ministry Of Agriculture, Food and Cooperatives

3 Accounting policies and systems3.1 IntroductionThis section provides an overview of the ASDP’s accounting policies and systems.ASDP’s accounting policies, which are in compliance with the existing governmentaccounting policies, are broad-based assumptions, that form the basis for preparationof financial statements and include specific principles, bases, conventions, rules andpractices adopted. This section also describes the accounts structure and codesused by the ASDP.3.2 Accounting standardsASDP’s accounts are prepared in accordance with the Public Finance Act andRegulations. In particular, financial statements must be prepared and presented inline with Generally Accepted Accounting Practice and instructions provided by theAccountant General.3.3 Basis of accountingASDP’s financial management arrangements comply with GoT laws and regulations.In this regard, it is worth drawing attention to the fact that, in accordance withRegulation 53 Sub-Section (1) of the Public Finance Regulations, ASDP’s accountsare maintained on a cash basis i.e. transactions are recognised only when cash isreceived or paid. Also, accounts are prepared on a historical cost basis.In line with GoT policy, the ASDP has adopted commitment accounting. This practiceallows the programme’s management to ensure budgetary control by committingfunds when a purchase order is issued.3.4 Records managementASDP’s management must comply with all instructions issued by the AccountantGeneral with respect to the preservation of accounting records. In addition,Reference 137 Sub-Section (2) and Reference 139 Sub-Section (2) of the PublicFinance Regulations of 2001, requires:• The Treasury securely bundles “all receipts and payment vouchers” lodgedby ASLMs• Books and records of accounts to be retained for specified periods. Forinstance, original payment vouchers and used cheques must be retainedfor a period of five years.Government of the United Republic of Tanzania17